Buying a house in Romania: step-by-step process, costs and what to check

Buying a home in Romania is a predictable transaction when the steps are taken in the right order. The difficulty rarely comes from the law itself; it comes from buyers skipping the pre-purchase review: the real state of the land register entry, whether the cadastral measurement matches the documents, mortgages or attachments recorded against the property, zoning status and the technical history of the building. On this page we set out, step by step, the process we run for our clients in Bucharest and Ilfov, which cost items arise, and what to examine before you commit.

Can foreigners buy a house in Romania

Yes. Foreign nationals, including non-residents, can buy residential property (apartments, houses, commercial units) in their own name in Romania. In practice all you need is a valid passport and a Romanian tax identification number (NIF); this number is issued by the tax authority and is required for registering the title and for the local property tax record.

Land is a different matter. Because restrictions apply to non-EU citizens for agricultural land and certain categories of plots, the most common solution among Turkish investors is to buy the land through a company established in Romania, usually an SRL. This structure gives a clean ownership position and makes life easier if development or resale is planned later. We cover the details separately in our guide on buying land in Romania.

Let us clear up a misunderstanding we meet often: buying a property in Romania does not by itself grant residence. There are two routes we work with: the company founder-administrator route (at least €50,000 of capital brought into a Romanian company, with no employment requirement) and the investor route (€100,000 for an SRL, €150,000 for an SA, with a business plan and job creation; three-year permits for investments of €500,000 and above). We know how these routes work and we manage the file from start to finish; see our Romanian residence permit page for an overview.

The purchase process, step by step

The process has four main stages, and each has its own checklist.

1. Selection and due diligence. Before price is discussed, the legal and technical status of the property is reviewed:

• Obtaining an up-to-date land register extract (extras de carte funciară) from the ANCPI system and confirming that the registered owner is in fact the seller
• Checking the cadastral file: measurements, floor plan, whether the stated area matches the documents, whether a cadastral number exists
• Checking encumbrances and annotations: mortgages, attachments, usufruct, registered leases, pending litigation, inheritance disputes
• The energy performance certificate, which the seller is obliged to provide
• The seismic risk classification of the building, especially for older stock in central Bucharest
• Written confirmation from the building administration that service charges and utility bills are clear
• For land or a detached house, the zoning status, building permit and completion acceptance records (recepție la terminarea lucrărilor)

2. Pre-contract and deposit. Once the parties agree, a pre-sale agreement (antecontract de vânzare-cumpărare) is usually signed before a notary and a deposit is paid. This agreement sets the price, the payment schedule, the handover date, the obligations of each party and what happens to the deposit if either side withdraws. The size of the deposit is a matter of negotiation; there is no fixed rule. Drafting the protective clauses correctly at this stage is the single most critical point in the whole transaction. If a mortgage is involved we recommend a condition tied to bank approval, and for off-plan projects a penalty clause covering late delivery.

3. The sale deed before the notary. In Romania a property sale is only valid if executed by a notary. The notary re-checks the land register entry at the moment of signing, verifies identities and powers of attorney, requests the certificate showing the seller has no outstanding tax debt, and draws up the contract as an authentic deed. If you do not speak Romanian, a sworn interpreter must be present. Buyers who cannot travel can be represented under a properly drawn power of attorney.

4. Registration of title. The notary submits the sale deed for registration in the land register held by ANCPI. Once registration is complete, ownership is formally recorded in the buyer's name and a current extract can be obtained. The property is then declared to the relevant municipality for property tax purposes, and the electricity, gas, water and building management contracts are transferred to the new owner.

Costs: which items arise

The main items on top of the purchase price are listed below. Rates and amounts vary with the value and type of the property and with current legislation, so we do not quote fixed figures here; for every file we present a written, line-by-line calculation before the transaction.

• Notary fee: calculated on a sliding scale based on the sale price, with VAT added
• Land registration fee: normally collected by the notary and paid to ANCPI
• Cadastral work: a separate cost arises if documentation is missing or needs updating
• Property tax: paid annually to the municipality where the property is located; the rate depends on the municipality and the type of property
• Agency commission: there is no standard market rate, it depends on the contract
• Legal and advisory fees, plus sworn translation costs
• If financing is used, bank arrangement fees, valuation and insurance
• Home insurance: the compulsory catastrophe policy (PAD) is taken out separately in Romania

In new developments, VAT may be included in the quoted price or added on top, and a reduced rate may apply to homes meeting certain conditions. For that reason we always confirm in writing whether an advertised price includes VAT or not.

Choosing a location in Bucharest and Ilfov

The same budget buys very different products in different parts of Bucharest. In short:

• Sector 1: the central and northern axis; prestigious, highly liquid, with per-square-metre prices in the top band
• Sectors 2 and 3: a large housing stock and strong metro coverage; balanced for both living and renting
• Sector 4: Berceni and its surroundings are well connected thanks to the metro line, with more accessible entry budgets
• Sectors 5 and 6: large differences between micro-locations; street-level analysis is essential
• Ilfov: heavy supply of new projects in surrounding localities such as Voluntari, Pipera and Popești-Leordeni; here traffic, schools, infrastructure and municipal services matter, and so does the permit and completion status of the project

In fast-growing areas such as Pipera and Popești-Leordeni, it is possible to come across buildings that do not comply with their planning permission or whose completion formalities were never finished. In files of this kind we advise against paying a deposit before cadastral and zoning checks are done. You can follow our current selection on our listings page, and if you are looking at rental yield, our guide on which district to choose for an investment apartment in Bucharest will help.

Common risks

• The registered area not matching the actual area, or no cadastral file ever having been opened
• Weak ownership history on restituted (retrocedat) properties
• Inherited properties where not all heirs have given their consent
• A pre-contract signed privately, without protective clauses, leading to loss of the deposit
• Off-plan projects where the delivery date and penalty clause are left vague
• Learning the seismic risk class of an older building only after purchase
• Payments made outside the banking channel, or cash transaction limits being ignored

How ABTürk works

With our Bucharest-based team we run the process on your behalf from property selection through to registration of title: ownership and land register review, verification of the cadastral file, zoning and location analysis, price and contract negotiation, coordination of the local lawyer and notary, obtaining the tax number and opening a bank account, and transferring utility subscriptions after completion. If the purchase is to be made through a company, or if residence is the wider goal, we plan the commercial and legal sides together so that the structure is set up correctly from the outset. Final decisions rest with the relevant authorities (ANCPI, the notary public, Registrul Comerțului, IGI and the municipalities) and rules and conditions can change over time; this page is for general information only.

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