Buying Land in Romania as a Foreigner or Non-EU Citizen: Urban versus Agricultural Land (Law 17/2014), Pre-emption Rights and Using a Company

1Can an Israeli buy land in Romania?

An Israeli citizen who has no citizenship of a European Union member state generally cannot register private ownership of land in his or her own name. By contrast, he or she can own a building or an apartment. He or she can also acquire land through a Romanian company. An Israeli who is also a citizen of Romania or of another EU member state acquires land like any European citizen.

The restriction derives from the Romanian Constitution and from Law 312/2005, which regulates the acquisition of land by foreign citizens, stateless persons and foreign companies. Under the law, citizens and companies from non-EU countries (“third countries”) can acquire land only on the terms set out in international treaties and on the basis of reciprocity, and in any case not on better terms than those of EU citizens. We are not aware of such a treaty between Israel and Romania. Romanian notaries tend to take the position that without a reciprocity treaty, a citizen of a third country can acquire only a building, and receives a surface right (drept de superficie) over the land beneath it.

2What does Law 312/2005 provide, by type of buyer?

The law distinguishes among several types of buyers. The most important is whether the buyer belongs to a state in the European Union or the European Economic Area.

3What is the difference between land inside the built-up area (intravilan) and agricultural land outside it (extravilan)?

Intravilan is land located within the boundaries of the built-up locality as defined in the general zoning plan (PUG). The ordinary acquisition rules and planning rules apply to such land. Extravilan is land outside those boundaries. When it is classified as agricultural, its sale is subject to a special and stricter regime under Law 17/2014.

For developers this is the central difference. Intravilan land, even when it is registered as agricultural, can be developed under the plans that apply to it, after completing the procedures to remove it from agricultural designation. Agricultural extravilan land cannot be developed without changing the boundary of the built-up area in a zoning plan (PUZ or PUG). Such a process is long and uncertain, and even before that, the very acquisition of the land is highly restricted.

4What does Law 17/2014 require when selling agricultural land outside the built-up area?

Law 17/2014 was significantly amended by Law 175/2020, which entered into force on 13 October 2020, and again by Law 116/2024. It provides for a sale in stages: the land is first offered to holders of pre-emption rights, and only if none of them buys is it permitted to sell to another buyer, who must also meet conditions.

1. Offer to holders of pre-emption rights: the seller publishes a sale offer in an orderly procedure through the local authority. Holders of pre-emption rights may buy at the same price and on the same terms.
2. If no holder of pre-emption rights bought: it is permitted to sell to another buyer only if he or she meets the eligibility conditions.
3. Conditions for a private buyer: for at least 5 years before the sale offer is registered, the buyer was the holder of a residence or resident in Romania, carried out agricultural activity in Romania and was registered with the Romanian tax authorities.
4. Conditions for a company: a head office or branch in Romania, agricultural activity in Romania, proof that at least 75% of the income in the last 5 tax years came from agriculture, and controlling persons who reside in Romania.
5. Approvals: the transaction requires various administrative approvals depending on the type of land and its location.
6. Signing before a notary: a sale that did not go through the pre-emption procedure, or that lacks a required approval, is void.

The implication is simple: a foreign private individual cannot directly buy agricultural land outside the built-up area. Even a new Romanian company whose shareholders are Israelis does not meet the seniority, income and control conditions.

5Who holds a pre-emption right (drept de preempțiune)?

The list of holders of pre-emption rights is long, and there is an order of priority within it. The amendments of 2020 and 2024 expanded it. According to summaries by law firms, it includes, among others: co-owners and relatives up to the third degree; owners of agricultural investments in the land, such as orchards, vineyards and irrigation; agricultural lessees; owners of neighbouring land; young farmers; research bodies and agricultural educational institutions; and the State, through the State Assets Agency.

The pre-emption right has practical significance even for a buyer who meets the conditions. The price and terms he or she agreed are offered to the holders of pre-emption rights, and they are entitled to take over the transaction. Lengthy negotiations over such land therefore do not guarantee that the transaction will close.

6Can you buy land through a Romanian company (SRL)?

Yes. For land inside the built-up area this is the accepted way. A company incorporated in Romania is a Romanian legal person, even if all of its shareholders are Israelis, and it acquires land like any Romanian company. Most foreign developers choose this structure in any case, because it suits development, the sale of units and bank financing.

Before establishing a company just for a single purchase, several points are worth considering:

• Agricultural land outside the built-up area: a new company does not meet the conditions of Law 17/2014, so the structure does not solve this restriction.
• Ongoing costs: bookkeeping, reports, registration of controlling persons, a bank account. The land book registration fee is also higher for a company: 0.5% of the value, compared with 0.15% for an individual.
• Taxation: the company is taxed in Romania on its profits. Dividend tax in Romania rose to 16% on dividends distributed from 1 January 2026. A sale of shares in a Romanian company by a foreign company may be subject to tax in Romania.
• The Israeli side: if the company is managed and controlled from Israel, it may be considered an Israeli tax resident. The rules on companies controlled from outside Israel and the tax treaty between the countries affect the right structure. This should be planned before establishment, not after.

7Which track suits you? A quick comparison

8What is expected in legislation? The 2026 bill

In March 2026 a bill (b133/2026) to supplement Law 312/2005 was submitted to Parliament. The bill limits the acquisition of agricultural land by citizens of EU states and companies incorporated there to 10 hectares, and allows certain companies up to 30 hectares, according to the composition of the capital and the identity of the actual controlling person. In April 2026 the Economic and Social Council of Romania gave a negative opinion, among other reasons because of concern about discrimination on the basis of citizenship and because of a lack of clarity. As of the time of writing we are not aware that the bill has been adopted. Investors in agricultural land should follow it.

9What should be checked before buying land in Romania?

1. Who signs the transaction: an Israeli citizen, a European citizen or a Romanian company. This decision comes before everything else.
2. Land book and cadastre extract: registered owner, area, encumbrances, legal proceedings.
3. Classification of the land: intravilan or extravilan, and the type of use (agricultural, construction, forest).
4. If the land is agricultural extravilan: whether the pre-emption procedure was completed as required by law, and whether the buyer meets the conditions of Law 17/2014.
5. Applicable plans and an urbanism certificate (certificat de urbanism) for information purposes: what may actually be built.
6. Forest land: it has a separate regime and its own pre-emption rights, and must be examined separately.
7. The tax structure in Israel and in Romania, before deciding whether to buy privately or through a company.

10Before signing: how we accompany a land purchase

We start with the question of who should hold the land, and only then examine the land itself. We check the land book, the classification and the plans, make sure the pre-emption procedures took place where required, and establish the Romanian company when that is the right structure. We coordinate the structure with your advisers in Israel. Our experience as developers in Romania helps to identify in advance land that looks cheap but in practice cannot be acquired or developed.

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The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.