Romania - a buyer's guide

About Romania

The principalities of Wallachia and Moldavia - for centuries under the suzerainty of the Turkish Ottoman Empire - secured their autonomy in 1856; they united in 1859 and a few years later adopted the new name of Romania. The country gained recognition of its independence in 1878. It joined the Allied Powers in World War I and acquired new territories - most notably Transylvania - following the conflict. In 1940, Romania allied with the Axis powers and participated in the 1941 German invasion of the USSR. Three years later, overrun by the Soviets, Romania signed an armistice. The post-war Soviet occupation led to the formation of a Communist "people's republic" in 1947 and the abdication of the king. The decades-long rule of dictator Nicolae CEAUSESCU, who took power in 1965, and his Securitate police state became increasingly oppressive and draconian through the 1980s. CEAUSESCU was overthrown and executed in late 1989. Former Communists dominated the government until 1996 when they were swept from power.

Although Romania completed accession talks with the European Union (EU) in December 2004, it must continue to address rampant corruption - while invigorating lagging economic and democratic reforms - to fulfill the requirements for EU accession, scheduled to take place in 2007 or 2008. Romania joined EU in January 2007 also joined NATO earlier in March 2004.

Real estate in Romania

How foreigners can buy property in Romania?
A company is necessary for the purchase of land.

Taxes & costs

Fees and taxes when you buy a property in Romania: these are paid on the official government values - not on the actual purchase price. Government values are substantially lower than market values.

Notary fees: between 1% and 1.5% of purchase cost, depending on the location of the property
State taxes: 0.5% of purchase cost
Registration property tax: 1% of purchase cost
Stamp duty: 2 euro

Taxes you have to pay as a property owner in Romania:
Annual tax on property: between 1% and 2% depending on the location of the property
Tax on rental income: 16%
Capital gains tax: 16% during the first 3 years and 0% after that.

Romania has double taxation agreements with many countries, including the UK.

Please contact us for full details on procedures and information needed to establish a Romanian company. We can assist you in all aspects of the purchase procedure.