Buying Property in Romania: A Comprehensive Guide

Romania, with its rich history, captivating natural beauty, and attractive investment opportunities, is the shining star of the Balkans. In this guide, we will explore the process of buying property in Romania step by step, providing you with comprehensive information, helpful tips, and important considerations to make this process easier to understand.

Overview of Romania

Romania is a Balkan country located in Eastern Europe. The Danube River, one of Europe’s longest rivers, concludes its journey here, contributing significantly to the country’s natural beauty. Known for its mountains, rivers, forests, and deep-rooted history, Romania offers a unique destination for both nature lovers and cultural enthusiasts.

The capital city, Bucharest, is the largest and most populous in the country. Brașov, home to the famous Bran Castle, and Iași, known for its cultural events, are also significant cities. Romania’s official currency is the Romanian Leu (RON).

Why Buy Property in Romania?

Buying property in Romania can be advantageous in many ways. Due to its strategic location, beautiful landscapes, and EU membership, Romania’s real estate market offers attractive opportunities for investors.

• Affordable Prices: Real estate prices in Romania are significantly lower compared to other EU countries, which is a major draw for investors.
• Ease for EU Citizens: In Romania, EU and EEA citizens have the same rights as Romanian nationals. They can fully own properties, including land.
• Tourism and Investment Potential: Romania offers high rental yield potential for investors, especially in popular areas such as Bucharest and Constanța on the Black Sea coast.

Things to Consider When Buying Property in Romania

If you are planning to buy property in Romania, it is essential to understand the process. Here are some key considerations before starting the purchase process:

Property Rights for Foreigners

Romania is flexible when it comes to selling real estate to foreigners. However, non-EU citizens cannot own land outright but can own the building on it. Therefore, it is important to confirm whether the property you intend to buy qualifies for such an arrangement. Consulting with a lawyer or a local real estate agent is highly recommended to ensure a smooth process.

Step-by-Step Process of Buying Property in Romania

The process of buying property in Romania generally involves the following steps:

1. Finding the Right Property: The first step is to find a property that meets your needs. You can do this through real estate agents or by searching online platforms.
2. Document Verification: Verify the registered documents of the property and check whether the taxes have been paid. The seller must provide documents showing whether there are any debts or legal obligations tied to the property.
3. Notary Procedures: The sale process must be conducted in the presence of a notary. The notary will prepare the necessary documents, and the sale will be finalized with signatures.
4. Land Registry Registration: You must register with the land registry to officially become the new owner of the property. This is required to complete the property transfer process.

Required Documents

The documents needed when purchasing a property include:

• Buyer and Seller Identification (ID card, passport)
• Property Title Deed
• Fiscal Identification Number (NIF)
• Cadastre Documents
• Land Registry Certificate
• Building Energy Certificate
• Most Recent Utility Bills (e.g., electricity, water)

Although some of these documents are provided by the seller, working with a lawyer or notary is advisable to avoid delays.

Property Prices and Rentals in Romania

Real estate prices in Romania vary by region. Property prices tend to be higher in major cities compared to smaller towns and rural areas. Below are some average prices and rental rates for major cities:

Property Prices

Rental Prices

These prices can vary depending on whether the property is in the city center or on the outskirts. Generally, cities like Bucharest and Cluj-Napoca have higher property prices and rents.

Taxes and Fees for Buying Property in Romania

There are several taxes and fees involved in purchasing property in Romania, including:

• Stamp Duty: 0.5% – 3%
• Notary Fees: 0.44% – 2.2%
• Land Registry Fees: 0.5% – 2%
• Transfer Tax: 0% – 3%
• VAT (if the seller is VAT registered): 24%

These additional costs should be considered during the purchase process. Engaging a legal advisor or real estate consultant can help you navigate these complexities.

Money Transfer and Payment Process

If you plan to buy property in Romania, you will need to make an international money transfer. The most common method is traditional banking. However, note that there could be fees and currency fluctuations affecting the final amount received by the seller.

Properties for Sale in Constanța

Constanța, located on the Black Sea coast, is a historic port city with a wide range of properties available, from modern apartments to historic homes. Below are some average property prices in different neighborhoods in Constanța:

These figures are provided as a general overview of the real estate market in Constanța. Prices can vary based on location and property condition.

Romania presents a highly attractive real estate market for foreign investors, with affordable property prices and flexible ownership laws. It is important to seek legal advice and be well-prepared for the intricacies of the buying process. Once you own the property, you can work towards your long-term investment goals, such as generating rental income or using the property for tourism purposes.