Property Purchase Costs in Romania: The Complete Breakdown for Foreign Buyers in 2026

Introduction: The Price on the Listing Is Not the Price You Pay

Every property listing in Romania shows a number. That number — the asking price — is the beginning of the calculation, not the end. Between the price a seller advertises and the total amount a foreign buyer actually spends lie layers of costs that, if not anticipated, can turn a well-researched investment into an unpleasant surprise. Taxes. Notary fees. Land registry charges. Legal due diligence. Agency commissions. Translation and apostille costs. Bank transfer fees. Currency conversion losses. And, for those financing the purchase with a mortgage, an entire additional category of banking and insurance charges.

The gap between the listed price and the true acquisition cost typically ranges from 6% to 12% of the property value for a straightforward residential purchase — and can be significantly higher for new-build apartments subject to VAT, properties requiring renovation, or transactions involving mortgage financing. For a €100,000 apartment, that means €6,000 to €12,000 or more in costs that never appear in the listing. For a €250,000 property, the gap can easily reach €25,000 to €45,000 when VAT applies.

This guide provides a complete, line-by-line breakdown of every cost category a foreign buyer will encounter when purchasing property in Romania in 2026. It covers the legal framework for foreign ownership, VAT rules, notary and registration fees, legal and technical due diligence, agency commissions, preliminary contract costs, foreign-buyer-specific expenses, mortgage-related charges, post-purchase running costs, and worked examples showing how these costs add up in practice. The objective is straightforward: no surprises.

1. Can Foreigners Buy Property in Romania?

The short answer is yes — with one important qualification regarding land. EU and EEA citizens can purchase apartments, houses, and commercial buildings in Romania on exactly the same terms as Romanian nationals. There are no additional taxes, no special permits, and no price restrictions. Non-EU citizens have the same rights when purchasing buildings — apartments, houses, and commercial properties. The distinction arises with land.

Under Romanian law, non-EU citizens cannot directly purchase land in their personal name. This restriction applies to the land underneath a house, agricultural land, and undeveloped plots. In practice, this means that a non-EU citizen who wishes to buy a house with its associated land parcel — or a plot for future construction — must structure the purchase through a Romanian legal entity (typically an SRL, the Romanian equivalent of a limited liability company). The company, as a Romanian-registered entity, can acquire land without restriction. The foreign individual owns the company, the company owns the land. This is a well-established, entirely legal, and widely used structure.

EU citizens can purchase land directly, including agricultural land, although certain notification and pre-emption procedures apply to agricultural transactions. For standard residential and commercial property purchases — apartments, houses, office units — EU citizens face no procedural barriers beyond those applicable to Romanian buyers.

A critical point for foreign buyers: Romania does not impose higher taxes or fees on foreign purchasers. The notary fees, registration costs, property taxes, and transaction charges are identical regardless of whether the buyer is Romanian, French, British, American, or from any other country. The additional costs that foreign buyers incur — translation, apostille, tax identification number — are procedural, not punitive.

FOREIGN OWNERSHIP SUMMARY. EU citizens: full rights to buy apartments, houses, commercial property, and land. Non-EU citizens: full rights to buy apartments, houses, and commercial property; land must be acquired through a Romanian company (SRL). Tax treatment: identical for all buyers regardless of nationality. There is no foreign-buyer surcharge in Romania.

2. How Much Should Buyers Budget Above the Purchase Price?

The total acquisition cost of a Romanian property comprises the purchase price plus all transaction costs incurred to complete the transfer of ownership. The precise percentage depends on the property type, the seller’s tax status, the buyer’s financing method, and the complexity of the transaction. However, as a working framework, buyers should budget as follows.

These ranges exclude renovation, furnishing, and ongoing running costs — which are covered separately below. The ranges also assume a standard transaction without unusual complications. Properties with unresolved legal issues, missing cadastral documentation, or contested ownership can generate substantially higher legal costs.

3. VAT on Property Purchases in Romania

Value Added Tax is the single largest transaction cost that can apply to a property purchase in Romania — and the one most frequently misunderstood by foreign buyers. Whether VAT applies, and at what rate, depends on the seller’s status and the property’s history.

When VAT Applies

VAT applies to the sale of new residential property by a VAT-registered seller — typically a developer. A property is considered ‘new’ under Romanian fiscal law if it is sold before first occupation or if it is sold within approximately one year of completion. Sales of new property by developers are subject to VAT as a standard taxable supply.

Resale property — an apartment or house sold by a private individual who is not a VAT-registered business — is generally exempt from VAT. This means that the vast majority of secondary-market transactions between private parties do not carry a VAT charge. The purchase price is the purchase price, without any VAT layer.

VAT Rates

The standard VAT rate in Romania is 19%. This applies to all new property sales that do not qualify for a reduced rate. Romania applies a reduced VAT rate of 5% for residential properties that meet specific conditions: the property must be intended for residential use, the usable area (suprafața utilă) must not exceed 120 square metres (excluding annexes such as terraces, balconies, and storage), and the sale price (excluding VAT) must not exceed a threshold set by law — currently 600,000 RON (approximately €120,000). Additionally, the buyer must be a natural person (individual), not a company, and the reduced rate can typically be used only once per individual for a single property.

If any of these conditions is not met — the apartment exceeds 120 m², the price exceeds the threshold, or the buyer is a legal entity — the standard 19% VAT rate applies to the entire transaction.

Parking Spaces, Storage Units, and Annexes

Developers frequently sell parking spaces and storage rooms (boxe) as separate units with their own cadastral numbers. When sold separately, these are subject to the standard 19% VAT rate regardless of whether the associated apartment qualifies for the reduced rate. This distinction catches many buyers off-guard: an apartment priced at €95,000 (plus 5% VAT) with a parking space at €15,000 (plus 19% VAT) carries a blended effective VAT rate that is higher than the buyer expected.

Is VAT Included in the Advertised Price?

This is one of the most important questions a buyer can ask — and one of the most common sources of confusion. Romanian developers adopt different pricing conventions. Some advertise prices inclusive of VAT (preț cu TVA inclus). Others advertise prices exclusive of VAT (preț fără TVA), with the tax added on top at contract signing. There is no legal requirement to advertise inclusive prices. Before comparing listings, before calculating yields, and before committing to a budget, the buyer must confirm whether the stated price includes or excludes VAT. The difference at 19% is substantial: a ‘€100,000’ apartment exclusive of VAT actually costs €119,000.

VAT REALITY CHECK. A foreign buyer sees a new-build apartment listed at €110,000 — apparently within budget. The listing does not specify whether VAT is included. At contract, the developer clarifies: the price is exclusive of VAT. At the standard 19% rate, the actual cost is €130,900. Add a separately sold parking space at €18,000 plus 19% VAT (€21,420) and the total reaches €152,320 — nearly 40% above the original listing figure the buyer had in mind. This is not a rare scenario. It is routine. Ask about VAT before visiting the property, not after signing a reservation agreement.

Purchasing as a Legal Entity

When a Romanian company (SRL) purchases property, the VAT dynamics change. A VAT-registered company purchasing commercial property can typically recover input VAT through its regular VAT returns, making the effective cost of VAT neutral — the company pays VAT on purchase and deducts it against its own VAT obligations. For residential property acquired by a company (for example, for rental investment), VAT recovery is possible only if the company is registered for VAT and the property is used for taxable business activities. The structure requires careful tax planning; buyers considering a company purchase should consult a Romanian tax adviser before committing.

4. Notary Fees and Land Registry Costs

The Notary’s Role in Romanian Property Transactions

In Romania, all property transfers must be executed through a public notary (notar public). The notary is not an optional participant — the sale-purchase agreement (contract de vânzare-cumpărare) must be authenticated by a notary to be legally valid and registrable in the land registry. The notary verifies the seller’s ownership, checks for encumbrances, confirms the property’s legal status, reads the contract to both parties, collects applicable taxes, and submits the transfer documentation to the land registry (OCPI — Oficiul de Cadastru și Publicitate Imobiliară).

The notary’s role is administrative and procedural. The notary does not represent either party, does not negotiate terms, and does not conduct the type of comprehensive legal due diligence that a buyer’s independent lawyer performs. This distinction is important: the notary ensures the transaction is formally correct, but it is the buyer’s own lawyer who investigates whether the transaction is wise.

How Notary Fees Are Calculated

Notary fees in Romania are regulated by the National Union of Notaries Public (Uniunea Națională a Notarilor Publici) and are calculated as a percentage of the property’s declared transaction value, subject to a schedule of degressive rates. The higher the property value, the lower the effective percentage. For a typical residential apartment transaction in the €50,000–€200,000 range, notary fees generally fall between €500 and €1,500. For higher-value properties, the fee increases but the effective rate decreases.

The notary calculates fees based on the transaction value declared in the contract. Romanian law also sets minimum reference values (valori de referință) for property transactions — these are fiscal benchmarks maintained by the tax authorities and the notarial chamber. If the declared transaction price falls below the reference value, the notary may apply the fee calculation to the higher reference value, and the tax authorities may scrutinise the transaction. In practice, this means that artificially under-declaring the purchase price to reduce fees is both legally risky and practically difficult.

Additional notary costs may arise for ancillary documents: a preliminary contract (antecontract) authenticated by a notary, a power of attorney (procură notarială) if the buyer cannot attend in person, and a mortgage deed if the purchase is bank-financed. Each of these carries a separate notary fee, typically ranging from €100 to €500 depending on complexity.

Land Registry and Cadastre Fees

After the sale-purchase agreement is authenticated, the notary submits the transfer to the local land registry office (OCPI) for registration in the Cartea Funciară (Land Book). The registration fee — called the intabulare fee — is calculated as a percentage of the property’s value and is typically modest for residential property, often in the range of €50 to €300. The fee is paid at the time of submission and covers the official recording of the new owner in the public land registry.

Before any transaction, both buyer and lawyer will request an updated extract from the Land Book (extras de carte funciară), which shows the current owner, the property’s legal description, and any encumbrances (mortgages, liens, court orders, easements). The cost of an extract is minimal — typically under €20 — but its contents are indispensable.

Cadastral documentation costs can be more significant if the property has not been recently surveyed or if there are discrepancies between the physical property and its registered description. If the property’s usable area, boundaries, or internal layout do not match the cadastral records, a licensed surveyor (inginer cadastral) must prepare updated documentation before the transaction can proceed. Surveyor fees range from €200 to €800 or more depending on the property type and the extent of the discrepancy. For apartments in recently built developments, cadastral documentation is usually current and no additional survey is needed.

5. Legal Due Diligence and Technical Inspection

The notary’s verification is a formal procedural check — it confirms that the seller appears as the registered owner and that no obvious impediments to transfer exist in the land registry. It does not constitute comprehensive legal due diligence. For a foreign buyer — unfamiliar with Romanian property law, construction practices, planning regulations, and local market conditions — relying solely on the notary’s checks is a significant and avoidable risk.

What Legal Due Diligence Covers

A thorough legal review by an independent Romanian property lawyer should investigate the complete chain of ownership (lanț de proprietate), confirming that each prior transfer was legally valid and that no earlier transaction is subject to challenge or restitution claims. Romania’s property restitution history — whereby properties confiscated during the communist period were returned to former owners or their heirs — means that some properties have complex ownership histories that require careful tracing.

The lawyer should verify whether the property is subject to any mortgages (ipoteci), judicial attachments (sechestre), court orders, or pending litigation. The land registry extract reveals registered encumbrances, but a comprehensive check also includes searches at the relevant court and the fiscal authority to identify tax debts or administrative claims that may not yet appear in the land registry.

For new-build properties, the legal review extends to the developer: verification of the building permit (autorizație de construire), the completion certificate (proces verbal de recepție la terminarea lucrărilor), compliance with planning conditions, the developer’s fiscal status, and whether the development has any outstanding disputes with contractors, subcontractors, or other buyers. Purchasers of off-plan apartments should also verify the Nordis Law compliance — the 2025 regulation requiring pre-registration of apartments before sale.

Additional areas of review include: verification that utility connections (electricity, gas, water, sewage) are properly contracted and have no outstanding debts; confirmation that any renovations or layout changes were authorised by a building permit; review of the homeowners’ association (asociația de proprietari) records for outstanding maintenance debts, pending capital-expenditure decisions, or legal disputes; and confirmation that the property’s intended use matches its registered classification.

Legal due diligence fees for a standard residential property typically range from €500 to €1,500, depending on the complexity of the transaction and the law firm. For commercial property or transactions involving corporate structures, fees are higher. This cost is one of the best investments a foreign buyer can make — a few hundred euros spent on legal review can prevent losses of tens of thousands.

Technical Inspection

Beyond the legal checks, a technical inspection of the physical property is strongly recommended — particularly for older buildings, houses, and any property where the buyer does not have professional construction knowledge. A qualified construction engineer or technical consultant can assess the building’s structural condition, the state of electrical and plumbing installations, the quality of thermal insulation and windows, waterproofing integrity (critical for top-floor and ground-floor apartments), the legality and quality of any renovations, and the estimated cost of necessary repairs.

For new-build apartments, a technical inspection before acceptance (recepție) can identify defects in finishes, installations, and compliance with the building specification. The cost of a technical inspection typically ranges from €200 to €600 — a modest expenditure relative to the repair costs it can help the buyer avoid or negotiate.

DUE DILIGENCE INVESTMENT. Combined legal and technical due diligence for a standard residential property typically costs between €700 and €2,000 — less than 1–2% of most property values. The cost of not performing due diligence — discovering an unregistered mortgage, an illegal extension, a structural defect, or a developer without a completion certificate — is measured in tens of thousands of euros and years of legal proceedings. This is the single highest-return expenditure in any Romanian property transaction.

6. Real Estate Agency Fees

In Romania, real estate agency commissions are not regulated by law — they are contractual, negotiable, and vary between agencies. Market practice, however, has established recognisable patterns.

The standard agency commission charged to the buyer is typically 2% to 3% of the transaction price, plus VAT (19% on the commission amount). Some agencies charge the buyer a fixed fee rather than a percentage, particularly for lower-value properties. The seller usually also pays a commission — often 2% to 3% — to the listing agency. In some transactions, particularly where one agency represents both parties, commissions may be charged to both buyer and seller simultaneously. Buyers should clarify, before engaging an agency, exactly what commission they will be expected to pay and under what circumstances.

The agency commission typically becomes payable upon signing the sale-purchase agreement at the notary — the point at which the transaction is legally completed. If a transaction falls through before this point, no commission should be due, although some agency contracts contain provisions for payment upon signing a preliminary contract or reservation agreement. Buyers should review the agency contract carefully before signing and ensure that commission obligations are clearly defined.

It is important to note that commission is not refundable if the buyer later discovers problems with the property. The agency’s role is to facilitate the introduction and the transaction — not to guarantee the quality or legal status of the property. This is another reason why independent legal due diligence is essential: the agency has a financial interest in the transaction completing, not in uncovering reasons why it should not.

7. Deposit, Preliminary Contract, and Off-Plan Costs

Most Romanian property transactions proceed in two stages: a preliminary agreement followed by a final sale-purchase contract at the notary. The preliminary stage generates its own costs and financial commitments.

Reservation Fee

Developers of new-build apartments typically require a reservation fee (taxă de rezervare) to take a unit off the market while the buyer arranges financing and documentation. Reservation fees range from €1,000 to €5,000 depending on the developer and the property value. The reservation fee is usually deducted from the purchase price if the transaction completes. If the buyer withdraws, the reservation fee may or may not be refundable — this depends entirely on the terms of the reservation agreement. Buyers should read this document carefully before paying.

Preliminary Contract (Antecontract)

The preliminary contract — antecontract or promisiune de vânzare-cumpărare — is a binding agreement in which the seller promises to sell and the buyer promises to buy, subject to specified conditions. At this stage, the buyer typically pays a deposit (avans) of 10% to 30% of the purchase price. If the preliminary contract is authenticated by a notary (recommended), an additional notary fee applies — typically €200 to €500.

Romanian law distinguishes between an advance payment (avans) and an earnest deposit (arvună). An avans is simply a partial payment — if either party withdraws, the advance is returned. An arvună carries penalties: if the buyer withdraws, the seller keeps the arvună; if the seller withdraws, the seller must return double the arvună. The type of deposit should be clearly specified in the preliminary contract. Ambiguity on this point has generated substantial litigation in Romania.

The preliminary contract can also be registered in the Land Book (notare antecontract), which creates a public record of the buyer’s contractual right and prevents the seller from selling the property to another party. The registration fee is modest — typically under €100 — but the protection it provides is significant, particularly for off-plan purchases where the final transfer may be months or years away.

Off-Plan Payment Schedules

Buyers purchasing off-plan apartments from developers typically pay in instalments linked to construction milestones: a deposit at signing, additional payments at completion of the structure, at completion of finishes, and a final payment at handover. These payments are made before the buyer takes ownership and before the final notarial transfer. The buyer should verify that the developer complies with the Nordis Law (2025), which requires pre-registration of apartments in the land book before off-plan sales — providing a critical layer of buyer protection that did not exist before this legislation.

8. Additional Costs for Foreign Buyers

While foreign buyers pay the same taxes and fees as Romanian nationals, the practical reality of purchasing property from abroad generates additional procedural costs.

Individually, most of these costs are modest. Collectively, they can add €500 to €2,000 or more to the total transaction cost — and they require advance planning. Obtaining a tax identification number, preparing powers of attorney, gathering apostilled documents, and arranging currency conversion all take time. Foreign buyers should begin this administrative preparation well before the target transaction date.

9. Mortgage-Related Costs

Foreign buyers who finance their purchase through a Romanian bank — or through an international lender with a Romanian mortgage — incur a separate layer of costs on top of the standard transaction expenses.

For non-resident buyers, mortgage availability varies significantly between Romanian banks. Some banks lend to non-residents with Romanian income; others require EU residency; a few offer products specifically designed for foreign investors. Interest rates, currency options (RON or EUR), and loan-to-value ratios all vary. Buyers should compare multiple banks and consider engaging a mortgage broker familiar with the non-resident lending market.

Currency risk is a real consideration for mortgage borrowers. A buyer earning income in US dollars, British pounds, or another currency who takes a Romanian mortgage denominated in RON is exposed to exchange-rate movements over the entire loan term. A depreciation of the buyer’s income currency against the leu increases the effective monthly payment. EUR-denominated mortgages reduce this risk for eurozone-based buyers but introduce it for others. The currency choice should be a deliberate decision, not an afterthought.

10. Costs After Completing the Purchase

Completing the purchase and registering ownership is not the end of the cost timeline — it is the beginning of a new one. Ongoing costs of property ownership in Romania include the following.

Annual Property Tax (Impozit pe Clădire and Impozit pe Teren)

Romanian property tax consists of a building tax and, if applicable, a land tax. For residential property owned by individuals, the building tax is calculated as a percentage of the property’s taxable value — rates are set by local councils and typically range from 0.08% to 0.2% of the fiscal value annually. For a standard apartment, this translates to a modest annual charge, often between €50 and €300. Properties owned by companies are taxed at higher rates — typically 0.2% to 1.3% of the fiscal or accounting value — making the ownership structure a relevant consideration for investors.

Mandatory and Recommended Insurance

Romania requires all residential property owners to hold a mandatory home insurance policy (PAD — Polița de Asigurare a Locuinței) covering earthquake, flood, and landslide damage. The PAD premium is low — currently approximately €20 per year for apartments and €10–20 for houses — but the policy is legally mandatory and can be requested by notaries and banks. Beyond the mandatory PAD, property owners are advised to carry a supplementary homeowner’s insurance policy covering a broader range of risks (fire, theft, water damage, civil liability). Annual premiums for supplementary insurance typically range from €100 to €400 depending on the property value and coverage level.

Homeowners’ Association Fees (Cheltuieli de Întreținere)

All apartment owners in Romania are members of the building’s homeowners’ association (asociația de proprietari) and are required to pay monthly maintenance charges. These charges cover shared utilities (common-area electricity, water, heating if applicable), building maintenance and cleaning, elevator operation, repair fund contributions, and management fees. Monthly charges vary enormously depending on the building’s age, size, facilities, and management quality — ranging from €30 to €60 per month for a modest apartment to €150 to €300 or more for premium developments with concierge, security, underground parking, and extensive common facilities.

The repair fund (fond de reparații) deserves specific attention. Romanian homeowners’ associations collect monthly contributions toward major future repairs — roof replacement, elevator modernisation, façade renovation, pipe replacement. In older buildings, insufficient repair fund accumulation can lead to special assessments (cotizații extraordinare) when major work becomes necessary. Buyers should request the association’s financial statements and repair fund balance before purchasing — a building with a depleted repair fund and ageing infrastructure is a building with a large hidden future cost.

Utility Contracts and Transfer

After purchasing a property, the new owner must transfer all utility contracts (electricity, gas, water, internet, television) into their name. This process involves visiting or contacting each utility provider, presenting the sale-purchase contract and the new land registry extract, and signing new supply contracts. The process is administrative rather than costly — most transfers are free or carry nominal fees — but it takes time and requires Romanian-language interaction. A local representative or property management company can handle this on the buyer’s behalf.

Renovation, Furnishing, and Fit-Out

For resale properties, renovation costs can be substantial and should be budgeted before purchase, not after. A basic cosmetic renovation of a standard two-room apartment (new flooring, painting, bathroom refresh, kitchen update) starts from approximately €5,000 to €10,000. A comprehensive renovation — including electrical rewiring, plumbing replacement, new bathroom waterproofing, new kitchen, and quality finishes — typically costs €15,000 to €30,000 or more depending on the apartment size and specification. For properties intended for rental, furnishing adds another €3,000 to €8,000. These are significant amounts that are separate from, and additional to, all transaction costs.

Property Management

Foreign owners who do not live in Romania will typically need a property management service to handle tenant relations, rent collection, maintenance coordination, utility payments, and regulatory compliance. Property management fees in Romania typically range from 8% to 15% of collected rental income for long-term rentals, and 15% to 25% for short-term (Airbnb-type) rentals where the management burden is significantly higher. For a property generating €500 per month in long-term rent, management costs of €40 to €75 per month are realistic.

11. Cost Differences by Property Type

The transaction cost profile varies significantly depending on the type of property being purchased. The following summary highlights the key differences.

Resale Apartment. The most straightforward transaction type. No VAT applies (assuming the seller is a private individual). Costs consist of notary fees, land registry registration, legal due diligence, and agency commission if applicable. Renovation may be needed. Total additional costs typically 3–9% of the purchase price.

New-Build or Off-Plan Apartment from a Developer. VAT is the dominant additional cost — 5% or 19% depending on whether the reduced-rate conditions are met. Beyond VAT, the buyer pays notary fees, registration costs, and should invest in both legal due diligence (including developer verification) and a technical inspection at handover. Off-plan purchases involve deposit risk and phased payments. Total additional costs (including VAT at the standard rate) can reach 20–25% above the net listed price.

House with Land. Transactions involving land are more complex. Cadastral documentation must cover both the building and the land parcel. Boundary verification, access rights, and utility connection confirmations are essential. Non-EU buyers must purchase through a Romanian company, adding company formation costs (€500–€1,500) and ongoing corporate compliance costs. A surveyor may be needed if cadastral records are outdated. Total additional costs 8–14% of the purchase price.

Commercial Property. Commercial property transactions typically involve VAT (recoverable by VAT-registered buyers), higher notary fees reflecting higher property values, a more extensive legal and technical audit, verification of operating permits and tenant lease agreements, and higher annual property taxes. Ongoing costs — including commercial insurance, property management, and maintenance — are also substantially higher than residential equivalents.

12. Example Property Purchase Cost Calculations

The following worked examples illustrate the total acquisition cost for two common scenarios. These are indicative calculations — actual costs will vary depending on the specific property, location, and transaction structure.

Example A: Resale Apartment — €85,000 Purchase Price

Example B: New-Build Apartment from Developer — €120,000 Net Price (excl. VAT)

THE EXAMPLE B LESSON. A buyer who sees ‘€120,000’ in a developer’s listing and budgets accordingly will discover at contract that the actual cost — with VAT, parking, and transaction fees — is approximately €163,500. That is a 36% gap between the number in the advertisement and the number leaving the buyer’s bank account. This gap is not unusual for new-build purchases at the standard VAT rate. Understanding it before making a commitment is the purpose of this guide.

13. Common Hidden Costs and Buyer Mistakes

Beyond the calculable transaction costs, experienced property lawyers in Romania encounter a recurring set of mistakes and overlooked expenses that disproportionately affect foreign buyers.

• VAT not included in the advertised price. As discussed in detail above, many developers advertise the net price excluding VAT. A buyer who budgets based on the advertised figure without confirming the VAT status faces an immediate 5–19% cost overrun.
• Separately priced parking and storage. Parking spaces and storage rooms are frequently not included in the apartment price. Each is sold as a separate unit with its own price and — if new-build — its own VAT charge at the standard 19% rate.
• Cadastral area mismatch. The usable area stated in the listing may differ from the area recorded in the cadastral documentation. If the official area is smaller than advertised, the buyer has less property than expected. If the official area differs from the physical area, corrective cadastral work must be done before the transaction — at the buyer’s or seller’s expense, depending on negotiation.
• Unauthorised renovations. A common issue in resale properties. Previous owners may have removed walls, enclosed balconies, reconfigured kitchens, or altered bathroom layouts without obtaining a building permit (autorizație de construire). These modifications may not be reflected in the cadastral records. The new owner inherits both the modification and the legal risk — including potential fines and, in extreme cases, an obligation to restore the property to its original layout.
• Outstanding homeowners’ association debts. Debts owed by the seller to the homeowners’ association do not automatically transfer to the buyer — but they can create practical problems, including restricted access to common facilities and administrative complications. The buyer should request a certificate from the association confirming that the seller has no outstanding debts.
• Double agency commission. In some transactions, the buyer unknowingly pays a commission to an agency that is also collecting a commission from the seller. This is legal, but it should be transparent. Buyers should ask whether the agency represents only them, only the seller, or both parties — and what commission is being charged on each side.
• Unfavourable currency exchange rates. A foreign buyer converting a large sum from USD or GBP to EUR or RON through a retail bank may lose 1–2.5% of the transaction value on the exchange rate spread alone. On a €150,000 purchase, that represents €1,500 to €3,750 in avoidable cost. Specialist foreign-exchange providers routinely offer better rates than retail banks for large transfers.
• Paying the deposit before legal review. One of the most consequential mistakes. A buyer who signs a reservation agreement or a preliminary contract — and pays a deposit — before having the property reviewed by an independent lawyer has committed money before knowing whether the property is legally clear. If problems are subsequently discovered, recovering the deposit can be difficult or impossible.
• No budget for post-purchase costs. Buyers who spend their entire budget on the purchase and transaction costs, leaving nothing for renovation, furnishing, utility connection, and initial running costs, find themselves owning a property they cannot use or rent without additional capital.
• Buying land without verifying foreign ownership rights. Non-EU citizens who attempt to purchase land in their personal name — without being advised of the legal restriction — discover the problem at the notary, potentially after having paid a non-refundable deposit. The solution (purchasing through an SRL) is straightforward, but it requires advance planning, not last-minute improvisation.

14. How ROMANIA FOR BUSINESS SRL Can Assist Foreign Buyers

ROMANIA FOR BUSINESS SRL provides professional support to foreign buyers navigating the Romanian property acquisition process. The firm’s services are designed to cover the gaps that foreign buyers most commonly encounter — from pre-transaction planning through to post-purchase administration.

The scope of support includes: preliminary assessment of the transaction structure and applicable costs, including VAT analysis and ownership-structure advice (personal purchase versus company purchase); comprehensive legal due diligence on the property, the seller, and — for new-build purchases — the developer; review and negotiation of the reservation agreement and preliminary contract; coordination with the notary, the bank (if mortgage-financed), and the authorised translator; assistance with obtaining a Romanian tax identification number (NIF) and preparing powers of attorney; accompaniment at the notary signing or representation under power of attorney if the buyer cannot attend; post-completion support including land registry monitoring, utility transfer coordination, and homeowners’ association registration.

For non-EU buyers who require a Romanian company to purchase land, ROMANIA FOR BUSINESS SRL can manage the formation of the SRL, the appointment of an administrator, fiscal registration, and the structuring of the purchase through the corporate entity.

The objective is straightforward: the foreign buyer should know, before committing any money, exactly what the total acquisition cost will be, what legal risks exist, and what the post-purchase cost structure looks like. No surprises at the notary’s office. No unexpected invoices after completion. A clear budget and a clear legal position from the beginning.

Conclusion: Budget the Transaction, Not Just the Property

The listed price of a Romanian property is the most visible number — but it is not the most important one. The total acquisition cost — including VAT, notary fees, registration charges, legal and technical due diligence, agency commissions, foreign-buyer procedural costs, and mortgage-related expenses — determines what the buyer actually pays. For a resale apartment purchased without financing, the gap between the listed price and the total cost may be as low as 3–5%. For a new-build apartment at the standard VAT rate with mortgage financing, the gap can exceed 25–35%.

Before paying any deposit, before signing any reservation agreement, and before committing to any transaction, a foreign buyer in Romania should have four things in hand: a detailed calculation of the total acquisition cost, including all taxes, fees, and procedural charges; a legal opinion on the property from an independent Romanian property lawyer; confirmation of the applicable tax regime, including VAT status and the implications of the chosen ownership structure; and a realistic estimate of post-purchase costs — renovation, furnishing, insurance, management, and ongoing running expenses.

Romania offers genuine value in the European property market. Prices remain substantially below Western European levels. Rental yields are competitive. The legal framework for foreign buyers is clear and non-discriminatory. But value is only realised when the buyer understands the full cost — not just the headline number on the listing.

Frequently Asked Questions