Buying Property in Romania Remotely: Notarial Power of Attorney, Apostille, Certified Translation and the Tax Identification Number (NIF)

1Can you buy an apartment in Romania without going there?

Yes. Romanian law allows the sale contract to be signed through an attorney-in-fact, and many Israeli investors buy this way. The condition is that the power of attorney is given in the right form and includes the right powers - otherwise the Romanian notary will simply not accept it, and the transaction will be delayed.

The source of the requirement is two articles of the Romanian Civil Code: Article 1244 provides that a contract transferring rights in real estate must be made in authentic form (before a notary), and Article 1301 provides that an authorization to represent is valid only if it was given in the form that the law requires for the contract that the attorney-in-fact will sign. In other words: a power of attorney for buying an apartment must be notarial, and a document with a simple signature or with only a lawyer's certification will not suffice.

2What are the ways to sign a power of attorney from Israel?

There are two main ways, and the choice between them depends mainly on the requirements of the Romanian notary who will execute the transaction.

The apostille in Israel: Israel and Romania are both parties to the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents. For a document signed before an Israeli notary, the apostille is issued by the registrar of the Magistrates' Court (at the court registries), after the notary's signature has been verified. There is also a route of an electronic notarial certification with a digital apostille, issued by the Notary Licensing Department at the Ministry of Justice - make sure in advance that the notary in Romania will accept a document in this format.

3What must appear in a power of attorney for buying a property?

A good power of attorney is specific. A power of attorney that is too general may be rejected, and one that is too broad creates risk for the investor. It is recommended to draft it in two languages (Romanian and Hebrew or English) already at the drafting stage, so that the translation does not change the meaning.

• Full identification details: the principal's name exactly as it appears in the passport, passport number, address, and the details of the attorney-in-fact.
• Identification of the property: address, land book number (Carte Funciară) and cadastral number.
• Financial terms: maximum price, currency, method and dates of payment.
• Powers: signing a preliminary agreement and a final contract, paying the price, receiving documents, filing applications with the land book, representation before the local authority and ANAF, obtaining a NIF, receiving keys and connecting utilities.
• Marital status: the Romanian notary will ask about marital status and the matrimonial property regime. If the purchase is in the name of one spouse, a declaration or consent of the other spouse may be required.
• Restrictions: a prohibition on self-representation or representing the other party, an expiry date, and the ability to revoke.
• Declarations: declarations the notary will require in the transaction, such as a declaration of the source of funds and of the buyer being the beneficial owner.

4How does the certified translation work?

A document in a foreign language submitted to a notary or an authority in Romania must be accompanied by a certified translation into Romanian (traducere autorizată), made by an authorized translator and usually authenticated by a Romanian notary. The translation is made after the original document has received an apostille, and it is customary to translate the apostille itself as well.

• Make sure the spelling of names is consistent across the passport, the power of attorney and the translation. A one-letter difference may delay registration.
• At the signing as well, if the buyer or the attorney-in-fact does not speak Romanian, the notary will require an interpreter.
• It is worth ordering the translation from a translator the Romanian notary knows, to prevent rejection at the last stage.

5What is a NIF, and when does an Israeli investor need it?

A NIF (Număr de Identificare Fiscală) is a tax identification number issued by the Romanian tax authority (ANAF) to a non-resident who does not have a Romanian personal numeric code (CNP) and who has tax obligations in Romania. It is used for paying building tax, reporting rental income, opening a bank account, and certainly for a future sale.

As for the purchase itself, the situation is less clear-cut: some notaries allow a foreign buyer to declare in the contract that no NIF has been assigned to them, and some local authorities require a NIF in order to open the tax file for the property. On a sale, by contrast, a NIF is a clear requirement. Since it will be required in any case, the recommendation is to obtain it now.

1. Form: Form 030 - tax registration declaration for individuals.
2. Where: at the competent tax authority. For a property, usually the authority in the area where the property is located.
3. Documents: a copy of a valid passport, a power of attorney if an attorney-in-fact files, a document justifying the application (for example a contract or a declaration) and a certified translation of every document in a foreign language.
4. Filing: directly, by registered mail or by electronic means, in person or through an attorney-in-fact under a notarial power of attorney.
5. Time: may take up to about 30 days, and expedited handling can be requested.
6. Deadline: according to the guidance, Form 030 must be filed within 30 days of the event that created the obligation; late filing exposes you to a fine of 500-1,000 lei.

6How do you pay the price in a remote transaction?

Payment is made by bank transfer, and every party to the transaction - the notary, the bank in Israel and the bank in Romania - will ask to see that the money comes from an account in the buyer's name and from a documented source.

• Transfer the money only from an account in the buyer's name, and not from the account of a relative or a company, unless the contract so provides.
• Prepare documentation of the source of funds in advance - banks carry out anti-money-laundering checks, and the notary may require a declaration.
• Set out in the preliminary agreement when and where each payment is made, and link the final payment to signing and registration.
• Remember the Israeli side: an individual who transferred NIS 500,000 or more abroad during 12 months is required to file an annual return with the Israel Tax Authority.

7What happens after the signing?

1. The notary files the application for registration in the land book; obtain a registration extract that shows the buyer as the owner.
2. Make sure the property is registered in the buyer's name in the local authority's tax file, and arrange payment of the annual building tax.
3. Transfer the electricity, gas, water and internet contracts to the buyer's name, and settle matters with the owners' association in the building.
4. Check the apartment insurance requirement and take out suitable insurance.
5. Revoke the power of attorney or let it expire if it is no longer needed, and keep original copies of all the documents.

8What to do before signing and how we accompany you

A remote transaction succeeds when coordination is done before anything is signed: choosing the notary in Romania, confirming the text and the route for certifying the power of attorney, obtaining a NIF and planning the payment dates. As a firm that operates in Israel and Romania and masters both languages, we draft the power of attorney in a form the Romanian notary is familiar with, represent the client at the signing and accompany the registration to the end - without the client having to board a plane.

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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.