Buying a Farm in Romania: A Complete Guide for Foreign Investors in 2026

1. Can Foreign Investors Buy a Farm in Romania?

Yes — but buying a farm is fundamentally different from buying an apartment. A farm acquisition may involve agricultural land (subject to the pre-emption procedure and, for non-EU buyers, land ownership restrictions), residential and farm buildings, machinery and equipment, livestock, harvested and growing crops, lease agreements with third-party landowners, EU agricultural subsidies and associated compliance obligations, environmental and veterinary permits, and — potentially — a workforce. Each element carries its own legal, fiscal, and operational requirements.

EU and EEA citizens can purchase agricultural land directly, subject to the mandatory pre-emption procedure under Law No. 17/2014. Non-EU citizens generally cannot acquire extravilan agricultural land in their personal name and must purchase through a Romanian SRL. The SRL itself must comply with the pre-emption procedure — the corporate structure does not bypass it. Regardless of the buyer’s nationality, every farm acquisition involving extravilan land requires strict adherence to the same statutory sale procedure. The investment timeline — from initial identification of a target farm to completion of all land transfers — should realistically be planned at three to six months minimum, and potentially longer for large multi-parcel acquisitions with complex lease structures.

2. What Does ‘Buying a Farm’ Actually Mean?

The choice between these structures affects the legal complexity, the tax burden, the risk profile, and the timeline of the transaction. An asset deal gives the buyer control over what they acquire but requires individual transfer of each land parcel (with pre-emption). A share deal preserves operational continuity but means the buyer inherits all of the company’s obligations — known and unknown.

3. Agricultural Land: Intravilan and Extravilan

Romanian agricultural land is classified as either intravilan (within the built-up area of a settlement) or extravilan (outside). The distinction is critical because the special pre-emption procedure under Law No. 17/2014 applies specifically to extravilan agricultural land. A farm’s land may include both categories: the farmhouse and adjacent buildings may sit on intravilan land, while the cultivated fields, pastures, orchards, and vineyards are extravilan. Each category has different sale procedures, different tax treatment, and potentially different ownership restrictions.

4–5. EU Investors Versus Non-EU Investors

EU and EEA citizens can purchase agricultural land directly — they have the same rights as Romanian nationals under Law No. 312/2005. However, they must comply with the pre-emption procedure: the land must first be offered to co-owners, tenants, neighbouring farmers, young farmers, and the state before it can be sold to a third party. EU citizenship eliminates the ownership restriction but does not eliminate the procedural requirement.

Non-EU citizens (UK, US, Turkish, Israeli, and other third-country nationals) generally cannot acquire extravilan agricultural land directly in their personal name. The standard solution is acquisition through a Romanian SRL, which, as a Romanian legal entity, can purchase land without the nationality restriction. The SRL must disclose its ultimate beneficial owner. The corporate structure is legitimate when used transparently — it must not be designed to circumvent the pre-emption procedure or to disguise beneficial ownership.

6. The Pre-Emption Procedure for Extravilan Farmland

This is the most important procedural element of any Romanian farm acquisition. Under Law No. 17/2014, the sale of extravilan agricultural land must follow a mandatory pre-emption procedure. The seller publishes a sale offer through the local town hall (primărie), specifying the land, the price, and the terms. The offer is made available to holders of pre-emption rights, who have a specified period to exercise their right to purchase on the same terms.

Pre-emption holders include (in the order established by law): co-owners of the land parcel; tenants who have a valid lease agreement; owners of agricultural investments on the land; neighbouring landowners; young farmers meeting specific criteria; and the Romanian state through designated agencies. The exact categories and their order of priority have been amended multiple times — the buyer’s lawyer must verify the current version of the law for the specific transaction.

If no pre-emption holder exercises their right within the statutory period, the land can be sold to another buyer — but only on terms no more favourable than those published in the original offer. A sale completed in violation of the pre-emption procedure can be annulled — potentially years after the transaction, exposing the buyer to the loss of both the land and the money paid. The procedure typically adds 4–8 weeks to the transaction timeline but can take longer if administrative delays occur, if a pre-emption holder’s application must be evaluated against the qualification criteria, or if multiple parcels require sequential processing. For a large farm with dozens of land parcels, the pre-emption procedure for all parcels must be planned as a coordinated programme, not an afterthought.

7. The Eight-Year Resale Restriction

Amendments introduced by Law No. 175/2020 created a severe disincentive for the quick resale of extravilan farmland. If the buyer resells the land within eight years of acquisition, a special tax of up to 80% may apply to the difference between the sale price and the purchase price (with the purchase price evaluated against notarial reference values). This tax is designed to discourage speculative land acquisition and flipping.

The restriction also applies, under certain conditions, to the sale of a controlling stake in a company whose primary asset is extravilan agricultural land — preventing investors from bypassing the resale restriction by selling the company rather than the land directly. The eight-year rule fundamentally shapes the investment horizon: a farm acquisition in Romania should be planned as a medium-to-long-term investment, not a short-term trade. Exit planning must account for this restriction from the outset.

8–9. Land Registry, Title Due Diligence, and Fragmented Ownership

A Romanian farm typically consists of dozens or hundreds of individual land parcels — each with its own cadastral number, Land Book entry, and ownership history. Due diligence must be conducted on every parcel, not just on the farm as a business. The buyer’s lawyer should verify: the registered owner; the cadastral area; the land category (arable, pasture, orchard, vineyard); boundaries; mortgages, liens, and attachments; registered leases; restitution claims; access to roads; and correspondence between the cadastral plan and the physical reality.

Fragmented ownership is one of Romania’s defining agricultural land characteristics. A 500-hectare farm may own only 200 hectares and cultivate the remaining 300 hectares under lease agreements with dozens of individual landowners — many of whom inherited small parcels through post-communist restitution. Leases may be for different terms, at different rates, and with different renewal conditions. Some may be unregistered or based on informal understandings. The buyer must compile a complete land schedule showing: each parcel’s cadastral number, ownership status (owned or leased), lease term, rent, and renewal conditions.

10–11. Agricultural Leases and EU Subsidies

Agricultural lease agreements (contracte de arendă) are critical to farm operations. The buyer must review: the lease term and remaining duration; the rental amount and form (cash or crop share); indexation and price adjustment mechanisms; renewal and termination provisions; the landlord’s right to sell the land (triggering the tenant’s pre-emption right); and registration status. Lease risks include: mass non-renewal at term end, rent escalation, landlord disputes, and informal sub-leasing arrangements that may not be documented.

EU Common Agricultural Policy (CAP) subsidies — administered in Romania through APIA (Agenția de Plăți și Intervenție pentru Agricultură) — are a significant component of farm income. The buyer should verify: the farm’s APIA registration and eligible area; the history of subsidy payments; any outstanding compliance obligations or repayment risks; and whether subsidy eligibility will continue after the change of ownership. Subsidies that were received on the basis of incorrect area declarations or non-compliance with environmental conditions may generate repayment obligations that transfer to the new owner (in a share deal) or that reduce the farm’s going-concern value.

12–13. Buildings, Equipment, Livestock, and Environmental Permits

Farm buildings (storage facilities, livestock barns, processing units, silos, workshops) must be checked for: building permits and completion certificates; cadastral registration; structural condition; compliance with current agricultural, veterinary, and fire safety standards; and whether they are located on owned or leased land. Equipment should be inventoried, valued, and checked for ownership (purchased, leased, or financed). Livestock requires veterinary registration, health certification, and compliance with animal welfare regulations.

Environmental permits are critical for livestock operations, food processing, and farms near protected areas. The buyer should verify: current environmental authorisations; compliance history; any pending enforcement actions; soil contamination risks (particularly from former chemical storage, fuel tanks, or intensive livestock operations); water extraction permits; and waste management obligations. An environmental liability inherited through a share deal can be significantly more expensive than the land itself.

13½. Water Rights and Irrigation

Water access is increasingly critical for Romanian agriculture, particularly in the southern and eastern plains where drought frequency has increased. The buyer should verify: the farm’s water extraction permits (autorizații de gospodărire a apelor); membership and standing in local irrigation associations (organizații de îmbunătățiri funciare); the condition and capacity of irrigation infrastructure; any limitations on water use during drought periods; and the cost of water delivery. A farm with irrigation commands a significant premium over dryland — but irrigation infrastructure that is deteriorated, undersized, or dependent on a single unreliable source represents a risk, not a value-add.

13¾. Financing the Acquisition

Agricultural land can serve as collateral for Romanian bank loans, though not all banks finance agricultural acquisitions by foreign investors. The buyer should explore: Romanian agricultural banks with farmland lending programmes; EU-backed financing through programmes supporting rural development; private equity and specialised agricultural investment funds; and vendor financing arrangements where the seller accepts deferred payment. The bank will require: an independent land valuation, a business plan demonstrating the farm’s viability, documentation of the buyer’s agricultural experience (or planned management structure), and compliance with AML/KYC requirements including source-of-funds documentation. The seasonal nature of agricultural income — with revenue concentrated after harvest — requires careful cash-flow planning for loan servicing.

14. Asset Deal Versus Share Deal

15. Farm Valuation and Purchase Price

A farm’s value is not simply the number of hectares multiplied by a price per hectare. A proper valuation considers: the land bank (owned and leased area, soil quality, location, water access, irrigation); the buildings and their condition; equipment and its depreciation; livestock and breeding stock; growing crops and inventory; the subsidy entitlement; the lease portfolio (terms, renewals, tenant relationships); the farm’s normalised earnings (EBITDA adjusted for extraordinary items); the working capital requirement; outstanding debt; capital expenditure needs; and the cost of resolving any legal, environmental, or regulatory issues. A 1,000-hectare farm with poor soil, aging buildings, expensive leases, and subsidy compliance problems may be worth less than a 300-hectare farm with fertile land, modern infrastructure, and a clean compliance record.

Romanian agricultural land prices vary enormously by region, soil quality, irrigation, and accessibility. In 2026, productive arable land in Dobrogea, Bărăgan, or the western plains commands significantly different prices than marginal pastureland in hill areas. Published average price-per-hectare figures should be used with extreme caution — they aggregate transactions of very different quality and may include both prime irrigated cropland and low-value grazing land in the same average. The buyer should obtain comparable transaction data for the specific region and soil category, supplemented by an independent agronomic assessment of the farm’s productive capacity.

16. Common Risks and Red Flags

• Incomplete land schedule. If the seller cannot provide a complete list of every parcel with cadastral numbers, ownership status, and lease terms, the buyer cannot assess what they are acquiring.
• Cultivated area exceeds documented area. Farming land that is not legally registered or leased creates subsidy, tax, and ownership risks.
• Informal lease arrangements. Verbal agreements or expired leases provide no security — the landlord can reclaim the land at any time.
• Subsidy received on disputed or incorrect areas. APIA may demand repayment, plus penalties, for subsidies received on ineligible land.
• Unregistered buildings. Farm structures without building permits or cadastral registration cannot be insured, financed, or legally sold.
• Environmental contamination. Former chemical storage, fuel tanks, or intensive livestock operations may have created soil or groundwater contamination that the new owner must remediate.
• Suggestion to bypass the pre-emption procedure. Any proposal to avoid the mandatory procedure is illegal and risks annulment of the sale.
• Price based solely on hectares. A farm’s value depends on productivity, infrastructure, legal status, and earnings — not just area.

17. Step-by-Step Acquisition Process

18. Post-Purchase Obligations

After closing, the new owner must: register ownership of all land parcels in the Land Book; declare the land and buildings at the relevant municipal tax authorities; update the company’s registration (share deal) or register the new SRL (if formed for the acquisition); notify APIA of the change of ownership and re-register for subsidy eligibility; transfer or re-apply for environmental, veterinary, and food safety permits; register livestock in the national animal identification system; update insurance policies for buildings, equipment, crops, and livestock; assume employment contracts and notify employees of the ownership change; re-register utility, irrigation, and service contracts; and establish ongoing accounting, tax compliance, and corporate governance procedures.

The first agricultural season after acquisition is operationally critical — crop planting or livestock management cannot wait for administrative formalities to be completed. The buyer should plan for a transition period in which the seller or an experienced farm manager remains available to ensure operational continuity. Key personnel — the farm manager, agronomist, veterinarian, and equipment operators — should be identified and retained before closing. A farm without competent management in the first season after acquisition is a farm at risk of significant value destruction, regardless of the quality of the legal transaction.

Frequently Asked Questions