Why Romania?

• Competitive property prices in Central/Eastern Europe

• EU member with strong economic growth and improving infrastructure

• Cities like Bucharest, Cluj-Napoca, and Timișoara attract youth, tech, and FDI

• Cultural richness, natural landscapes, and rising tourism appeal

• Attractive yields and value growth in regional markets

Can Foreigners Buy Property in Romania?

Yes — foreign individuals and companies enjoy the same rights as Romanians to buy apartments, houses, and commercial properties.

• However, non-EU citizens cannot directly buy land; they may lease it long-term or use a Romanian company

• EU and EEA citizens face no restrictions on land ownership

Residency & Permit Programs 2025

• No property-linked residency or Golden Visa

• Standard residence permits through work, study, family reunification, or entrepreneurship

• Property ownership may support visa/residency applications by proving accommodation, but is not enough on its own

Legal Process of Buying Property

1. Obtain a Romanian tax code (CNP) and open a bank account

2. Hire a notary or lawyer for title, encumbrances, and contract checks

3. Sign a reservation agreement and pay a deposit (5–10%)

4. Complete preliminary checks—property liens, taxes, urban plan

5. Finalize with a notarial purchase deed

6. Notary registers title transfer with the Land Registry (Cartea Funciară)

7. Pay all legal fees, taxes, and registration costs

Taxes & Fees

• Transfer Tax: Rarely applied—some regions charge up to 3%

• Notary & Legal Fees: Typically 1–2% of purchase price

• Agent Fees: Usually around 2–3%, often shared between buyer and seller

• Land Registration Fee: Flat administrative fee (~€50)

• Annual Property Tax: 0.1%–1% of tax-assessed value, varies by municipality

• Capital Gains Tax:

  • 10% for individuals

  • 0% if held 3+ years or property price ≤ €200,000

• Rental Income Tax: Flat 10% (or 40% expenses auto-deducted)

Mortgage Availability for Foreigners

• Romanian banks offer mortgages to non-residents, often requiring:

  • Proof of stable income and residency (or local employment/self-employment)

  • Loan-to-Value (LTV): Up to 70% for non-residents, 75–80% for residents

  • Interest Rates (2025): Around 6–8%, depending on loan term and borrower profile

Is Romania Right for You?

✅ Ideal for:

• Investors seeking affordable entries with high-yield potential

• Expats working in tech, business, or academic hubs

• Buy-to-let portfolios in growing urban areas

• Long-term capital-growth investors in emerging markets

❌ Less ideal for:

• Buyers expecting visa or residency through property ownership

• Those not comfortable with occasional bureaucracy

• Short-term flippers—market moves moderately and transaction cycles can be slow

Top Places to Buy in Romania (2025)

Bucharest (Sector 1, 2, and 6)

• Capital with evergreen rental demand—young professionals and expats

• Average yields: 4–5%

Cluj-Napoca

• Tech and university hub—high rental demand, modern developments

• Yields: 5–6%, capital appreciation strong

Timișoara

• Industrial and cultural center; growing expat community

• Yields: 4.5–6%, affordable entry

Iași & Brașov

• University towns with growing tourism and rental markets

• Yields: 5–6%

Constanța & Mamaia (Black Sea coast)

• Popular holiday and short-let destinations

• Seasonal yields: 6–9% (higher after expenses)

Rental Yield & ROI Overview

Trends in 2025

• Tech hubs drawing skilled workers and rental demand

• Retail and mixed-use development growing in regional cities

• Rise of short-let platforms in coastal and tourist towns

• EU-funded insulation and energy renovation schemes

Common Mistakes to Avoid

• Not clarifying land vs. building ownership conditions for non-EU buyers

• Under-budgeting for renovation, agent, and legal costs

• Ignoring Romanian-language title and urban-planning checks

• Overestimating short-term tourist rental demand

• Assuming home purchase grants any kind of residency

Conclusion

Romania offers a dynamic, affordable, and EU-backed real estate market with solid rental yields and capital-growth potential, particularly in urban and tourist regions. While it requires navigating local rules and language, the rewards for long-term investors and expats are substantial. Plan smartly, leverage local support, and Romania can be a fertile ground for real estate success in 2025.