Buying Property in Romania - The Complete Legal Guide for Israeli Investors

1Why is Romania an attractive investment destination, and what do you need to know before entering the market?

In recent years Romania has positioned itself as one of the growing real estate markets in Europe. The logistics and industrial market continues to expand at a high pace, shopping centres and retail parks in medium-sized and small cities are recording high demand, and the residential market is recovering against the background of interest rate cuts by the European Central Bank, which make it easier to take out mortgages and bring buyers back to the market. Cities such as Bucharest, Cluj-Napoca, Timișoara and Iași offer attractive yield potential compared with Western European countries.

At the same time, Romania is a market with a distinctive legal framework, and local institutions and regulations that require professional accompaniment. Anyone who arrives in the Romanian market without adequate preparation may find themselves exposed to risks that could have been entirely avoided.

2What is the legal framework for acquiring real estate in Romania?

The normative framework rests on two pillars: the Romanian Civil Code and the Cadastre and Land Registration Law (Law No. 7/1996). These laws regulate the conditions of capacity, the formal requirements for the deed transferring ownership, the price, the parties' obligations, the seller's liability and the conditions of public registration.

Specific transactions are also subject to particular laws:

• Law 17/2014: applies to transactions involving agricultural land outside city limits, and provides for pre-emption rights and special taxes.
• Law 422/2001: applies to monuments and historic buildings.
• Law 10/2001: applies to transactions concerning properties nationalized during the Communist period, and sometimes affects the cleanness of rights in old properties.

It is also worth staying up to date: a new Urbanism and Construction Code is in the final stages of approval as of early 2026, and an investor should follow its effect on licensing procedures once it enters into force.

3What is the difference between an Asset Deal and a Share Deal in Romania?

Several acquisition structures are used in Romania, and two of them are the most common: an asset deal and a share deal. In both, detailed due diligence, legal, tax, technical, environmental and commercial, is a necessary condition before signing.

4Can an Israeli buy a house, apartment or land in Romania?

Buildings and apartments - yes, without restriction. Land - here the story is more complex, and it depends on the principle of reciprocity. This is the critical distinction that every Israeli investor must know.

• Buildings and apartments: There is no restriction at all. Foreigners, individuals and corporations, may acquire buildings and rights in them without limitation.
• Land: Citizens of the European Union and residents of EEA states may acquire land on terms identical to Romanian citizens. Citizens of countries that are not members of the Union, including Israelis, are subject to the principle of reciprocity: they may acquire ownership of land in accordance with international treaties and on the basis of reciprocity, provided that the terms of acquisition are no more favourable than those granted to EU citizens.

In practice, most Israeli investors who want to hold Romanian land take one of two approaches: establishing a Romanian company in direct or indirect ownership, or building a holding structure that allows protected control of the property. The choice between the tracks depends on the type of property, the purpose of the investment and tax considerations.

5How do pre-emption rights work when buying agricultural land in Romania?

In developer transactions involving agricultural land outside city limits, a graded and complex system of pre-emption rights applies. Under the law, before such land can be acquired it must first be offered, in a fixed order of priority, to the following parties:

1. Co-owners
2. Family members
3. Those who invested in improving the land (construction, infrastructure, planting and the like)
4. Lessees of the land
5. Owners of adjacent plots
6. Young farmers
7. State institutions in the field of agricultural research
8. Residents of the area
9. The State itself, through the State Assets Agency

Only after each of these parties has chosen not to exercise its pre-emption right can the purchase take place. The law provides a special procedure for publishing the intention to sell, under which one must wait 30 days from the date of publication until the sale to a third party is completed, in case any holder of a pre-emption right is not interested in buying.

6What are the stages of the purchase process in Romania, from preliminary agreement to registration?

A standard transaction in Romania proceeds in five clear stages:

1. Letter of intent and due diligence: After agreeing on the principles it is customary to sign a letter of intent (LOI) or memorandum of understanding. The document is usually non-binding, except for exclusivity, confidentiality and timetable clauses. At this stage the legal, tax, technical and environmental due diligence is carried out.
2. Preliminary agreement (Promissory Agreement / Antecontract): A binding document that regulates the framework of the transaction, the date of final signing and the handover of possession. The deposit paid at this stage is automatically secured by a statutory mortgage on the property in favour of the buyer, unless the buyer has expressly waived this. If one of the parties ultimately refuses to close, the injured party may apply to the court within six months and demand a ruling that replaces the final agreement, or alternatively is entitled to compensation as agreed between the parties in the preliminary agreement or as provided by law. It is customary and advisable to sign the preliminary agreement before a public notary, so that it is registered in the land registry.
3. Romanian tax number (NIF): Every foreign buyer must open a file with the Romanian tax authority and obtain a tax identification number. Without this number one cannot sign a contract, pay taxes or carry out any legal act in relation to the property.
4. Signing before a notary: The final agreement is signed before a public notary. The notary verifies the identity of the parties, examines signing authority, makes sure the legal conditions are met and submits the application for registration in the land registry.
5. Registration in the land registry: This is the critical stage from a legal standpoint. Registration is carried out by the public notary after it has been proved to him or her that the consideration has been paid in full.

7When does the buyer become the owner in Romania: upon signing or upon registration?

Upon registration. In Romania registration in the land registry is constitutive: ownership is created only upon registration, not upon signing the contract. Until registration the buyer is not the legal owner and has no protection against the seller's creditors or conflicting transactions. Registration also determines priority over other creditors and grants protection against claims by third parties.

8Does the Romanian notary represent the buyer?

No. The Romanian notary is a central and unavoidable player: he or she verifies the terms of the sale transaction, examines signing authority and, after verification, sends the documentation and the registration application to the land registry office. However, he or she is a neutral body whose technical responsibility does not include examining the quality of the commercial terms or protecting the interests of either party.

The notary also does not examine the ownership history of the property, but only the cleanness of the current situation. Representation by an independent lawyer is therefore essential for any serious transaction.

9Which documents are essential in due diligence in Romania?

Due diligence must include at the very least two documents:

• A current land registry extract (Extras de carte funciară): Shows the identity of the legal owner, liens and mortgages, caveats and legal restrictions. Without this document one cannot proceed.
• A municipal tax clearance certificate (Certificat fiscal): Confirms that there are no debts to the municipality. The Romanian notary is required by law not to approve a transaction without this document.

A full professional check will also include ownership history, compliance with planning and building laws, environmental issues and the physical condition of the property.

10What is the seller's liability in Romania?

The Romanian Civil Code regulates two types of seller liability: protection against eviction (Eviction) and liability for hidden defects that could not have been discovered in a reasonable inspection. A seller cannot be exempted from liability for a defect that he or she knew about and did not disclose to the buyer.

In serious commercial transactions it is customary to add contractual mechanisms to these protections: representations and warranties (Representations & Warranties), including confirmation of the absence of debts, the absence of legal proceedings and compliance with planning and building laws. The seller's liability for contractual warranties can be limited (time, amount, matters disclosed to the buyer), but this limitation does not override a defect that the seller knew about.

11What is worth doing before signing?

Many Israelis arrive in Romania with capital, determination and good will, and run into surprises that could have been entirely avoided. The difference between a profitable transaction and an expensive trap often lies in the details: who checked the land registry extract, what the preliminary agreement says about a penalty for late handover, whether the holding structure suits the type of property, and what the real acquisition costs are, including taxes. Independent legal accompaniment from the first stage covers exactly these details.

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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.