Authored by the expert who managed and guided the team behind the Romania Property Pack
Everything you need to know before buying real estate is included in our Romania Property Pack
Romania offers EU citizens unrestricted property ownership while non-EU buyers face land ownership limitations but can freely purchase apartments and houses.
As of June 2025, the Romanian property market continues its upward trajectory with prices increasing 10-15% annually in major cities, making it an attractive investment destination for foreign buyers seeking high rental yields of 6-8% in top locations.
If you want to go deeper, you can check our pack of documents related to the real estate market in Romania, based on reliable facts and data, not opinions or rumors.
Foreign property ownership in Romania varies significantly between EU and non-EU citizens, with EU nationals enjoying full ownership rights while non-EU buyers cannot directly own land.
The Romanian real estate market offers attractive returns with gross rental yields averaging 6.55% nationally and reaching up to 8.53% in cities like Galați and Bucharest.
| Aspect | EU/EEA Citizens | Non-EU Citizens |
|---|---|---|
| Buy Apartments/Houses | Yes, no restrictions | Yes, no restrictions |
| Buy Land | Yes, full ownership | Only via Romanian company |
| Residency Required | No | No |
| Remote Purchase | Yes, via power of attorney | Yes, via power of attorney |
| Mortgage Access | Yes, easier conditions | Yes, stricter requirements |
| Average Transaction Costs | 5-7% of property value | 5-7% of property value |
| Capital Gains Tax | 1-3% based on ownership period | 1-3% based on ownership period |
Can foreign nationals purchase real estate in Romania and what restrictions apply?
EU, EEA, and Swiss citizens can freely purchase any type of property in Romania, including land, on the same terms as Romanian citizens.
Non-EU citizens face more restrictions: while they can buy apartments, houses, and commercial buildings without limitations, they cannot directly own land except through specific mechanisms like establishing a Romanian company or reciprocity agreements.
For non-EU buyers wanting to purchase property with land (like houses with gardens), the land underneath is typically held through common ownership arrangements or a superficies agreement, where you own the building but not the land itself.
The most common workaround for non-EU citizens is setting up a Romanian limited liability company (SRL), which costs approximately €200-400 and allows unrestricted property and land purchases.
It's something we develop in our Romania property pack.
Do foreign buyers need residency or a specific visa to purchase Romanian property?
No residency or specific visa is required to purchase property in Romania, regardless of your nationality.
Property ownership does not automatically grant you residency rights or visa privileges in Romania, though it can be a positive factor when applying for residency permits.
You'll need to obtain a Romanian Tax Identification Number (Cod Numeric Personal pentru Străini - CNP) before purchasing, which can be acquired through the local tax office with just your passport.
The entire purchase process can be completed on a tourist visa or even without entering Romania at all if you use a power of attorney.
Is it possible to buy Romanian property remotely without traveling to the country?
Yes, you can complete the entire property purchase remotely through a power of attorney (procură) granted to a Romanian lawyer or notary.
The power of attorney must be authenticated by a notary in your home country and then apostilled (for countries part of the Hague Convention) or legalized through the Romanian consulate.
Your appointed representative can handle all aspects of the transaction, including property viewings, negotiations, signing contracts, and registering the property in your name.
Remote buyers typically spend €500-1,500 on legal representation fees, which covers the entire purchase process from start to finish.
What's the complete process for buying property and which documents are needed?
The property purchase process in Romania follows a structured path that typically takes 30-60 days from initial offer to final registration.
| Step | Required Documents | Timeline |
|---|---|---|
| 1. Obtain Tax ID (CNP) | Passport, application form | 1-2 days |
| 2. Property Due Diligence | Land registry extract, title deed, cadastral plan, fiscal certificate, energy certificate | 3-7 days |
| 3. Pre-Contract (Optional) | IDs, tax numbers, property documents, 10% deposit | 1-2 days |
| 4. Final Sale Contract | All previous documents plus proof of payment | 1 day |
| 5. Land Registry | Notarized contract, registration fee payment | 3-15 days |
The pre-contract stage is optional but recommended as it secures the property with a 10% deposit (15% if using a mortgage) and sets penalties for breach of contract.
All property transfers must be authenticated by a public notary who verifies the legality of the transaction and ensures proper registration with the Land Registry.
Are lawyers and notaries mandatory for property transactions?
A public notary is mandatory for all property transactions in Romania - they authenticate the sale contract and register the transfer with the Land Registry.
While a lawyer isn't legally required, hiring one is strongly recommended, especially for foreign buyers unfamiliar with Romanian property law and language.
Notaries charge 0.5-2% of the property value (minimum €500), while lawyers typically charge 1-2% for full transaction support including due diligence.
The notary's role is primarily administrative - they ensure legal compliance but don't represent your interests, which is why having independent legal representation protects you from potential pitfalls.
Your lawyer will review contracts, negotiate terms, verify property documentation, check for liens or debts, and ensure the seller has clear title to transfer.
Don't lose money on your property in Romania
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How do property prices vary across Romanian cities and regions?
As of June 2025, Romanian property prices show significant regional variations, with Cluj-Napoca leading at €3,000 per square meter, followed by Brașov at €2,083/sqm.
| City | Avg Price (EUR/sqm) | YoY Change | Avg 1BR Rent (EUR) | Gross Yield |
|---|---|---|---|---|
| Cluj-Napoca | 3,000 | +15.7% | 600 | 4.84% |
| Bucharest | 1,862 | +15.0% | 650 | 8.04% |
| Brașov | 2,083 | +19.2% | 550 | 6.20% |
| Constanța | 1,766 | +13.6% | 528 | 6.50% |
| Timișoara | 1,700 | +12.8% | 450 | 6.26% |
| Iași | 1,737 | +15.8% | 480 | 6.08% |
| Galați | ~1,000 | N/A | 442 | 8.53% |
The national average apartment price stands at €1,710/sqm, with annual increases of 10-15% across major cities during 2024.
Secondary cities like Galați and Craiova offer significantly lower entry prices around €1,000/sqm while delivering some of the highest rental yields in the country.
Transaction volumes increased most dramatically in Iași (+38.5%) and Constanța (+17.8%), indicating strong investor interest in these emerging markets.
Which Romanian locations offer the best opportunities for foreign investors?
Bucharest remains the top choice for rental yields, offering returns up to 8.67% for one-bedroom apartments, combined with high liquidity and a strong expat community.
Cluj-Napoca, Romania's tech hub, provides excellent capital appreciation potential with 15.7% annual growth, though rental yields are lower at 4-5% due to higher purchase prices.
Coastal properties in Constanța, particularly in Mamaia Nord, show rapid value growth with tourist arrivals up 8.2% in 2023 and early bookings for 2024 increasing by 25%.
Emerging investment hotspots include Galați (8.53% yields), specific Bucharest districts (Floreasca, Aviației, Băneasa, Victoriei), and university cities like Iași and Timișoara.
For lifestyle-focused buyers, Brașov offers mountain resort living with 6.2% yields and strong short-term rental demand, while Sibiu and Oradea provide authentic Romanian culture with growth potential.
What are all the costs involved in buying and owning Romanian property?
Total transaction costs typically range from 5-7% of the property value, covering all fees and taxes associated with the purchase.
Notary fees range from 0.5-2% of property value with a minimum of €500, while land registry fees are 0.15% for individuals or 0.5% for companies.
Optional but recommended costs include lawyer fees (1-2% of property value) and real estate agent commissions (2-5% plus 19% VAT).
Annual property taxes are relatively low at 0.08-0.2% of the property's taxable value for residential properties, payable in two installments.
When selling, capital gains tax is 1% if you've owned the property for over 3 years, or 3% if owned for less than 3 years.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Romania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Can foreigners obtain mortgages in Romania and what are the requirements?
Foreign buyers can obtain mortgages from Romanian banks, though non-EU citizens face stricter requirements and may need to provide more documentation.
Typical mortgage requirements include 15-25% down payment, proof of income for the last 6 months, employment contract, and debt-to-income ratio below 40-50%.
As we reach mid-2025, mortgage interest rates for foreign buyers range from 6.5-8.5% annually, with EU citizens generally receiving more favorable terms.
Banks typically finance up to 75-85% of the property value for EU citizens and 60-75% for non-EU citizens, with loan terms up to 30 years.
To improve mortgage approval chances, open a Romanian bank account 3-6 months before applying, maintain steady deposits, and consider using a mortgage broker familiar with foreign buyer requirements.
What tax obligations do foreign property owners face in Romania?
Foreign property owners must pay annual property tax of 0.08-0.2% of the taxable value, with payments due in March and September.
Rental income is taxed at a flat rate of 10% after deducting a standard 40% expense allowance, effectively resulting in 6% tax on gross rental income.
Romania has double taxation treaties with over 80 countries, which may reduce or eliminate Romanian tax obligations if you pay tax in your home country.
All property income must be declared to Romanian tax authorities by May 25th of the following year, even if covered by a tax treaty.
It's something we develop in our Romania property pack.
What mistakes do foreigners commonly make when buying Romanian property?
The most critical mistake is inadequate due diligence, leading to purchases with unclear ownership, hidden debts, or ongoing legal disputes.
- Not verifying that property renovations have proper permits - unpermitted modifications can invalidate sales or require expensive remediation
- Overpaying on pre-contract deposits without understanding that notary fees are calculated on the advance amount
- Assuming non-EU citizens can directly own land - this is only possible through a Romanian company or special agreements
- Failing to check for unpaid utilities, taxes, or condominium fees that transfer to the new owner
- Not using a lawyer for contract review, missing abusive clauses or unfavorable terms
- Ignoring the importance of the cadastral registration - properties without proper cadastral documentation cannot be legally transferred
- Trusting verbal agreements instead of getting everything in writing and notarized
How is Romania's rental market performing and what returns can investors expect?
Romania's rental market shows strong performance in Q1 2025 with national average gross yields of 6.55%, significantly higher than most Western European markets.
Bucharest leads with 8.04% average yields, while Galați offers the highest returns at 8.53% for one-bedroom apartments due to lower purchase prices.
The tourism-driven short-term rental market is thriving, particularly in Constanța where Mamaia Nord saw tourist arrivals increase 8.2% in 2023.
Student cities like Cluj-Napoca, Iași, and Timișoara maintain consistent rental demand with 95%+ occupancy rates during the academic year.
Market forecasts predict property prices will rise 3-7% in 2025, with the supply-demand gap in major cities likely to sustain both price growth and strong rental yields through 2026.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Romania's property market offers compelling opportunities for foreign investors, with EU citizens enjoying unrestricted access and non-EU buyers finding workable solutions through company formation.
As of June 2025, the combination of rising property values (10-15% annually), high rental yields (6-8% in major cities), and relatively low entry prices compared to Western Europe makes Romanian real estate an attractive investment destination for both capital appreciation and rental income.
Sources
- Romanian Law Office - Purchase Romanian Property
- Global Property Guide - Romania Price History
- Romania Insider - Apartment Prices Increase 2024
- Property Forum - Bucharest Rental Yields
- Global Property Guide - Romania Rental Yields
- PwC Romania - Real Estate Guide
- DLA Piper - Romania Real Estate Taxation
- CEE Legal Matters - Real Estate Romania 2025
- CBRE - Romania Real Estate Market Outlook 2025
- CMS - Real Estate Transaction Costs Romania