Planning and Construction for Developers in Romania: PUG, PUZ, the Urbanism Certificate (Certificat de Urbanism) and What to Check Before Buying Land for Development

1What changed in planning law in Romania in 2026?

On 25 August 2026, the Code of Territorial Planning, Urbanism and Construction (Codul Amenajării Teritoriului, Urbanismului și Construcțiilor), approved as Law 169/2026, entered into force. The President signed it on 5 August 2026, and it was published in the Official Gazette on 10 August. The code unifies planning and construction law, which until then was scattered mainly across Law 350/2001 on planning and Law 50/1991 on building permits.

The transitional provisions are important for anyone who is already in the middle of a process:

• Applications for an urbanism certificate, for approvals or for permits filed up to 24 August 2026 are examined under the previous law. Applications filed from 25 August are examined under the new code, even if the certificate or approval was issued before that.
• Urbanism certificates issued before the code entered into force remain valid for the period specified in them.
• Building permits issued under the previous law can be extended once, for up to 12 months. The application is filed at least 15 working days before the permit expires.
• The new definition of the land coverage coefficient (POT) does not apply to plans approved before 25 August 2026.

In a separate article we deal with the procedure for obtaining the building permit itself. Here we focus on what comes before it: how to understand what may be built on land before buying it.

2What is the difference between PUG, PUZ and PUD?

These are the three levels of urban planning in Romania, from the most general to the most detailed. The plan that applies to the plot determines the permitted use, the height and the building coefficients.

Under the new code, dividing a plot into two plots is a simple cadastral operation (dezlipire). Division into 3 to 12 plots for private houses requires a PUD. Division into more than 12 plots, or for other uses, requires a PUZ. For a developer planning a neighborhood of landed houses, this rule changes the timetable and the budget.

3What is an urbanism certificate, and what is it not?

An urbanism certificate (certificat de urbanism) is an information document issued by the local authority. It describes the legal, economic and technical regime of the plot, the planning requirements that apply to it and the list of approvals needed for the permit. It does not confer a right to build and does not replace a building permit. Under the previous law it is valid for between 6 and 24 months, depending on the purpose of the application and the complexity of the project, and it can be extended by up to 12 months if requested at least 15 days before it expires.

Before a purchase, the certificate is the cheapest and fastest tool for checking what may be built. The norms under the previous law did not require the applicant to prove ownership of the plot. Therefore, a certificate can usually be requested for information purposes even before buying, although the authority may request additional documents. In the certificate, three things are mainly checked:

• The plan that applies to the plot: the PUG alone, or also an approved PUZ or PUD.
• The parameters: permitted use, maximum height, land coverage (POT), utilization coefficient (CUT) and setbacks.
• The additional requirements: whether the authority requires, before the permit, a PUZ or PUD, studies or special approvals, for example in conservation areas or areas with building restrictions.

Under the new code, an urbanism certificate is also required for merging and dividing plots within the built-up area. Outside the built-up area it is not required when the operation is not intended for construction, provided that this is declared.

4What are POT and CUT, and why do they determine the value of the land?

POT (procent de ocupare a terenului) is the percentage of the plot area covered by construction. CUT (coeficient de utilizare a terenului) is the ratio between the total built area and the plot area. For a developer, CUT is in effect the number of apartments or offices that can be sold, and it therefore determines how much the land is worth. The definition of POT was updated in the new code, so in a plan approved after 25 August 2026 you need to check under which definition the coefficients were calculated.

5How is a PUZ approved, and what changed in the new code?

A PUZ is the tool for changing what may be built: extending the built-up area, changing designation, increasing height and coefficients. The procedure includes an opening stage, in which an initiation approval (aviz de inițiere) must be obtained, followed by the preparation of the plan by an authorized planner, obtaining approvals from various bodies, public consultation and approval by the local council. In practice, the procedure takes many months, and sometimes longer.

The new code introduced several changes that are important for developers:

• Integrated approvals committee (comisia de avizare integrată): consolidation of the approvals in a single body. The committee is supposed to be set up within 45 working days of the publication of the law.
• Tacit approval: if an approving body not represented on the committee did not request clarifications and did not decide within the time limit set by law, the documents are considered complete, and the applicant continues with proof of filing and a declaration that no answer was received. The exceptions: defense and public order bodies, the initiation approval and the chief architect's approval, which cannot be given tacitly.
• Partial nullity: under Article 146(1) of the code, where the illegality concerns only part of a plan such as a PUZ, the court may declare partial nullity, and the rest is not automatically affected. This reduces the risk, but does not eliminate it, because the court examines each defect on its merits.

6What is special about planning in Bucharest?

In Bucharest the situation is particularly complex, and it is worth checking each plot on its merits. In February 2021, the General City Council suspended the coordinating PUZ plans of sectors 2 to 6. Subsequently, the court of appeal finally annulled the plans of sectors 3 and 6, and the district court suspended the plans of sectors 2, 4 and 5. As a result, in large parts of the city permits were issued on the basis of the old PUG, approved in 2000.

Under the new code, from 1 November 2028 some of the powers to issue building permits will pass from the sector mayors to the Mayor of the General City Hall, and the implementing regulations must be completed by 1 July 2027. In a project in which the permit is expected to be issued around that date, it is worth planning in advance who the competent authority will be. The provisions state that the new authority will issue the permit on the basis of an urbanism certificate that is still valid.

7What do you check before buying land for development in Romania?

1. Land book and cadastre: ownership, registered area versus actual area, security interests and legal proceedings.
2. Classification: whether the land is intravilan or extravilan, and what the registered type of use is. Agricultural land requires a procedure to remove it from agricultural designation.
3. An urbanism certificate for information purposes: before signing a binding agreement.
4. The plan that actually applies: whether the PUZ or PUD that the seller relies on were approved, published, and whether there is a petition or suspension against them.
5. Coefficients and restrictions: POT, CUT, height, setbacks, conservation areas, aviation restrictions, power lines, roads and railways.
6. Access and infrastructure: a legal access road, water, sewage, electricity and gas. Under the new code, connections that pass through public land require the road manager's consent, without a building permit.
7. Environment and soil: contamination, flooding, existing structures that must be demolished.
8. Who may purchase: if the buyer is a citizen of a country outside the Union, purchasing through a Romanian company.

8How do you structure a land deal that depends on planning?

When the value of the land depends on a plan that has not yet been approved, you pay for the rights only when they are obtained. There are several customary structures: a notarial preliminary agreement with a condition precedent, such as approval of a PUZ or obtaining a building permit, after which the sale contract is signed; an option for a low payment for the planning period; a graduated price, in which part of the consideration depends on the CUT actually approved; and a combination deal with the landowner, in return for areas in the project. In all these structures it is determined in advance who files the applications, who pays the planners, and what happens if the plan is rejected.

9Before you sign: how we accompany a land purchase for development

We work as developers and as lawyers, and therefore we check land as a developer checks it: first the plan and what can actually be built, and only then the price. We request an urbanism certificate, examine the legal status of the plans, and coordinate with local planners and surveyors. We build the purchase transaction so that payment is tied to planning progress. Since the new code entered into force, we also check for each project which law applies to it during the transitional period.

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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.