Answer: The Romanian Legal System establishes precise regulations concerning the matter of ownership right over real estate in Romania. There are several distinct instances that must be explained in order to fully understand the overall legal approach.
Foreign citizens can acquire real property in Romania, but only on certain conditions. These limitations generally concern immediate economic criteria that Romania had to fulfill as an active member of the European Union.
Before going into details, our team of lawyers in Romania wishes to draw attention to some specific aspects regarding the legal status of foreign nationals. We will further distinguish between three major classes: foreign citizens, stateless persons and legal entities. These are the most significant groups, representing individuals or juridical personalities who can fall under the ownership rights regulations. Legal information about buying real estate in Romania reveals several different circumstances.
Answer: We would like to point out right from the beginning the fact that Romanian Legislation has no interdictions with reference to the ownership right over Romanian real estate such as apartments, commercial or industrial buildings for foreign citizens, stateless persons or for legal entities, regardless of their country of origin. So they can acquire ownership right over the above mentioned real estate properties under the same conditions with those applicable to Romanian citizens.
Nevertheless, the land these buildings are standing on cannot be acquired and therefore, a right of “superficies” must be established in favor of these properties. So, in brief, a foreign citizen interested to make a Romanian Real Estate investment can simply acquire the right to use the land, but not the land itself. Our Romanian lawyers can provide more information on the legal implications.
Answer: We would like to inform you about the ownership right over Romanian Real Estate for EU citizens, EU domiciling stateless persons and legal entities formed in an EU member state or belonging to the Economic European Area.
The land acquisition process is regulated strictly through a normative act in The Romanian Constitution. The Law no. 312/2005, Article 44 paragraph (2) final thesis establishes that “Aliens (foreign citizens) and stateless persons may acquire private ownership of lands only under the terms as may arise from Romania's accession to the European Union and from other international treaties to which Romania is a party, on a reciprocal basis, in accordance with an organic law, as well as by way of statutory inheritance.”
At his moment, there are two different circumstances under which foreign individuals are able to acquire real estate (only land), in Romania:
The foreigners buying property in Romania, the stateless person, as well as the legal entity belonging to foreign states can acquire ownership right over Romanian real estate (land), only under the conditions stipulated by international treaties, on a reciprocity basis. These conditions can be further discussed with our attorneys in Romania.
Answer: There is a law for ownership right over Real Estate for Romanian Legal Persons. As opposed to all previous restrictions, a business organization (which is a Romanian legal entity) may acquire the ownership right over Romanian real estate (lands and buildings). This regulation entitles companies which are also legal entities to the ownership right over any type of land, including agricultural land, forests and forestry land. Consequently, the shareholders or the partners of a company, no matter what their nationality, indirectly have the right to acquire lands and buildings.
The real estate market in Romania has developed a lot during the past few years and there are more and more foreign citizens that are interested in buying properties here. Although the interest for the Romanian real estate market has grown rapidly, there are still questions about the legislation regarding this process. Can foreign EU citizens buy properties in Romania directly or there is other EU legislation that they must take into account. This is why our Romanian law firm has a division specialized in real estate law.
Law no 312/2015 is the one that regulates the rights of EU and Non-EU foreign citizens buying Romanian land or properties. This law states that any citizen of a member state that does not have a legal residency in Romania, non-residents that have residence in the EU or non-residents companies that are incorporated under the EU legislation are able to get ownership of a land or property as a second residence or second headquarters. Still, there are differences in the legislation depending on the type of land you want to buy. Therefore, a legal entity or individual can get ownership of Romanian forests or agriculture land after 7 years from the date Romania joined the European Union. This excludes farmers that can prove their status as a farmer in their residence country. The experts at our law firm in Romania ca provide more details on these laws.
If you are interested in buying an apartment in Romania, you need to take into account that this includes a percentage of the land on with the building stands on. Therefore, at this moment it is not possible to buy it without a Romanian company or a legal residency here. In addition, Non-Eu citizens can’t get ownership of Romanian land, even though they are able to own properties here based on reciprocity between countries due to international treaties.
In conclusion, if you are EU or non-EU foreign citizen interested to acquire one or more properties in Romania, do not hesitate to contact our Lawyer office at Darie, Manea and Associates in order to help you find the best way possible to do this.
• Bucharest: the average price per square meter is approximately 1.400 Euros; at the end of 2020, an increase was observed both in case of old apartment buildings as well as new real estate (the most significant increase was in this case, with a 4% increase in November compared to October)
• Brasov: a 1,2% increase was recorded in November compared to the prior month, with the average price per square meter being around 1,231 Euros;
• Cluj: prices increased by 0.8% on a month-on-month basis; foreigners who are interested in buying property in Romania in this city will pay an average price of 1,840 Euros per square meter;
• Constanta: a 0.7% price increase in November compared to October 2020, bringing the average square per meter price to 1,253 Euros.
As this article clearly demonstrates, any type of real estate transaction calls for professional legal help. Certain specific features within the legal apparatus may seem of little importance but, from a deeper perspective, these aspects might function as essential details. The presence of one of our real estate lawyers can undoubtedly deliver a wider view of this specific topic. Quality legal assistance can evolve into long-term financial gains and it will always ensure a safe investment. We are here to help, so call our law firm in Romania for a free consultation.