Selling Property in Romania: Tax on the Sale, the Transaction Process and Bringing the Money Back to Israel

1How much tax do you pay in Romania when selling an apartment?

As of October 2026, an individual who sells a building (including the adjoining land) or land in Romania pays income tax of 3% of the transaction value if they held the property for up to three years inclusive, and 1% of the transaction value if they held it for more than three years. The rule applies to Romanian residents and non-residents, and therefore also to an Israeli investor.

It is important to understand the logic: this is not a tax on profit but a tax on turnover. Someone who bought for 500,000 lei and sold for the same amount after two years will pay 15,000 lei (3%), even though they earned nothing. On the other hand, someone who sold at a high profit will pay relatively low tax compared with the profit.

• Tax base: the price declared in the contract. If it is lower than the minimum value set in the notarial chamber's market study (studiul de piață), the tax will be calculated according to the chamber's value. This means that declaring a low price will not save tax, and may create other problems.
• Withholding and payment: the notary calculates the tax, collects it before the signing and transfers it to the authority by the 25th of the following month.
• Main exemptions: acquisition under special laws, a gift between relatives up to the third degree and between spouses, and an inheritance completed within two years of death. An inheritance not completed within two years is subject to tax of 1%.

2What documents does a foreign seller need?

A seller who is not a Romanian resident needs the same documents as a local seller, and in addition a Romanian tax identification number (NIF). When all the documents are ready, the contract can be signed within a few days; it is the preparation itself that takes time.

1. A valid passport of the seller, and in its absence - a suitable notarial power of attorney.
2. The title document (the original purchase contract or another document).
3. NIF - issued by ANAF on Form 030; the application is made at the tax authority in the area of the property. Issuance may take up to about 30 days, and expedited handling can be requested.
4. A local tax certificate (certificat de atestare fiscală) from the municipality proving that there are no building tax and land tax debts. The certificate is valid until the end of the month in which it was issued.
5. Cadastral documentation and a land registry extract (extras de carte funciară), which the notary orders.
6. An energy performance certificate (certificat de performanță energetică).
7. A certificate from the owners' association in the building confirming no debts to the committee, unless the buyer agrees to take them on.
8. Recent utility bills and receipts.

3What does the sale process look like step by step?

1. Preparation: collecting the documents, obtaining a NIF and checking that there are no security interests, attachments or outdated entries in the land book.
2. Preliminary agreement (antecontract): in most transactions a preliminary agreement is signed before a notary, with a deposit and a date for the final signing. It is worth defining in it what happens in the event of a breach.
3. Final contract: signed before a notary in authentic form; a seller who does not speak Romanian will be accompanied by an interpreter. It is also possible to sell through an attorney-in-fact, under a notarial power of attorney.
4. Payment of the tax: the notary collects the sales tax from the seller at the transaction.
5. Registration: the notary files the buyer's registration in the land book (Cartea Funciară).
6. After the sale: closing contracts with service providers, reporting in Israel and transferring the funds.

4What is different when the seller is a Romanian company?

A company has no transfer tax on the sale of a property. The gain is included in the company's profits, and as of October 2026 is taxed at corporate tax of 16% - or, in a micro-enterprise company, at 1% of income as long as the company has not crossed the 100,000 euro ceiling.

• The micro-enterprise ceiling: the sale of a single property usually crosses the ceiling and moves the company to corporate tax from the quarter in which it was crossed.
• VAT: the sale of a new building is a transaction subject to VAT. Between two registered taxable persons a reverse-charge mechanism applies, and in a sale to private individuals the VAT is included in the price. The status of the property should be checked before pricing.
• Selling the shares instead of the property: sometimes the entire company can be sold. Since Law 239/2025, a transfer of shares by a controlling shareholder requires notice to the tax authority within 15 days, and the trade register checks a certificate of no tax debts. The taxation of a share sale by an Israeli resident in Romania and in Israel differs from the sale of a property, and requires a separate check under the treaty.
• Taking the money out: after the sale the money remains in the company. Taking it out as a dividend is subject to withholding tax and to the new limitations on distribution when there are accumulated losses.

5How much tax do you pay in Israel on the sale of a property in Romania?

An Israeli resident is subject to capital gains tax on the sale of a property abroad. An apartment outside Israel is not a right in real estate under the Israeli Land Taxation Law, and is therefore taxed under the Income Tax Ordinance and not through the real estate betterment tax, and the Israeli sole-apartment exemptions do not apply to it. The tax rate on an individual's real gain is generally up to 25%, subject to the rules for allocating the gain over periods.

• Credit: according to the Tax Authority's guide, an Israeli resident who paid capital gains tax abroad on the sale of a property there will receive a credit in the amount of the tax paid, subject to the limitations of the law. The credit is claimed in Appendix D (Form 1324) with a document proving the payment.
• The implication: since the Romanian tax is 1%-3% of the price, tax will usually remain payable in Israel, unless the gain is small. On a sale at a loss, the Romanian tax may not be utilized at all.
• Reporting within 30 days: the seller must submit to the assessing officer, within 30 days of the date of the sale, a notice on Form 1399(Y) with a calculation of the capital gain, and pay an advance in the amount of the tax. The obligation applies even when the sale is at a loss.
• Annual return: in the year of the sale the capital gain must be included in the annual return, noting that the property sold is located abroad.
• Returning residents and new immigrants: special exemptions may apply to properties acquired during a period of foreign residency - each case should be checked on its merits.

6How do you bring the money back to Israel without delays?

In Romania, as a member state of the European Union, there are no restrictions on transferring funds abroad, but the banks on both sides will carry out anti-money-laundering checks. What determines the speed of the transfer is mainly the quality of the documentation.

1. Receive the sale proceeds directly into a bank account in the seller's name (in Romania or in Israel), and not in cash or to a third party.
2. Prepare a documentation file: the notarial sale contract, confirmation of payment of the sales tax, the original purchase documents and documentation of the original transfer of the money from Israel.
3. Notify the bank in Israel in advance of the expected transfer and send it the documents.
4. Check conversion costs and fees - in large transfers the difference between providers can be significant.
5. Keep all the documentation for the purpose of reporting to the Tax Authority.

7What to do before deciding to sell and how we accompany you

The best planning for a sale begins even before the property is advertised: checking that the holding period has crossed three years, preparing a NIF and tax certificates, and examining the consequences in Israel. We accompany Israeli sellers in Romania - including a remote sale through a power of attorney - from drafting the preliminary agreement through registration, and in coordination with the accountant in Israel regarding the reporting and the credit.

Read next · 7 min readA Will for an Israeli With Property in Romania: Choice of Law, Form of the Will and Coordination With the Will in IsraelHow to write a will that works for property in Romania: Regulation 650/2012 and choice of law, notarial or handwritten wills, reserved shares, the Israeli will.Read the guide

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.