How Foreign Property Owners Can Rent Out Property in Romania: A Complete Guide for 2026

1. Can Foreign Owners Rent Out Property in Romania?

Yes. A foreign national who owns property in Romania has the full legal right to earn rental income from it — whether they live in Romania or abroad, whether they are EU or non-EU citizens, and whether the property is an apartment, a house, or a commercial unit. No Romanian residency, work permit, or special licence is required to be a landlord. The owner can manage the property personally, through a representative under power of attorney, or through a professional property management company.

However, the right to rent comes with obligations: a Romanian tax identification number (NIF), lease registration with ANAF for long-term rentals, income tax and potentially CASS health contributions on the rental income, and — for short-term tourist accommodation — a tourism classification certificate and neighbour consent. Additionally, the owner must comply with tax obligations in their country of residence. This guide covers every step.

2. Choosing Your Rental Model

The choice depends on the owner’s investment objective, the property’s location and type, the owner’s willingness to manage operations (or pay for management), and the tax implications of each model. A Bucharest city-centre apartment may generate higher gross income as an Airbnb but lower net income after cleaning, management, vacancy, and platform fees. A well-located apartment near a university or corporate district may deliver superior risk-adjusted returns as a stable long-term rental.

3. Verifying Your Right to Rent the Property

Before listing, verify: that your ownership is registered in the Land Book (Cartea Funciară); that all co-owners consent to the rental (if the property is jointly owned); that spousal consent is obtained if the property is marital community property; that the mortgage agreement (if any) does not prohibit or restrict renting — some banks require notification; that the property’s registered use permits the intended rental type (residential rental, tourist accommodation, commercial); that the homeowners’ association rules do not prohibit short-term rental; and that any developer restrictions on use have been checked.

4. Obtaining a Romanian NIF

A foreign landlord needs a Număr de Identificare Fiscală (NIF) from ANAF — the Romanian tax authority. The NIF is required for lease registration, tax declarations, and all fiscal correspondence. It is obtained by submitting an application to the ANAF office competent for the property’s location (or for the owner’s fiscal representative), together with a passport copy and — if applying through a representative — an apostilled, translated power of attorney. Processing takes days when documentation is complete. The NIF should be obtained before the first tenant moves in.

5. Preparing the Property for Rental

A rental-ready property requires: safe and functioning electrical, gas, and plumbing installations; a working heating system; furnishing and appliances appropriate to the market segment; an energy performance certificate (certificat de performanță energetică); mandatory PAD insurance plus supplementary landlord insurance; utility contracts in the owner’s name (or transferred to the tenant by agreement); a photographic inventory of the property’s condition and all items included; and, for short-term rental, compliance with tourism classification requirements including safety standards.

6. Screening Tenants

A reliable tenant screening process includes: verifying identity documents; confirming employment or income source; requesting references from previous landlords; confirming the intended number of occupants; clarifying the purpose of use (personal residence only, or home office); and — for commercial leases — verifying the company’s registration, financial statements, and litigation history. Data collection must comply with GDPR — gather only information that is necessary and proportionate for the tenancy decision.

7. The Long-Term Lease Agreement

A properly drafted lease agreement is the landlord’s primary protection. Essential terms include: full identification of both parties (including NIF); precise property description with cadastral number; lease duration, start date, and renewal conditions; rent amount, currency, payment date, and method; exchange rate mechanism if rent is in EUR but tax obligations are in RON; rent indexation clause (typically annual, linked to CPI or a fixed percentage); security deposit — amount, holding arrangements, permitted deductions, and return deadline; utility payment allocation — which costs the tenant pays, which the landlord pays; maintenance and repair responsibilities (tenant: minor/daily; landlord: structural/major); subletting restrictions; early termination conditions and notice periods; property inspection rights; and applicable law and dispute resolution.

The lease should be accompanied by a handover protocol (proces verbal de predare-primire) recording the property’s condition, furniture inventory, and utility meter readings — signed by both parties, with photographs. This document is essential evidence if disputes arise at the end of the tenancy.

8. Registering the Lease with ANAF

Individual landlords earning income from long-term rental of personal property must register the lease agreement with ANAF within 30 days of its conclusion, using Form 168 (Cerere de înregistrare a contractelor de locațiune). The form is submitted together with a copy of the lease. Subsequent amendments, renewals, and terminations must also be registered within 30 days. Registration can be done in person, by post, or electronically through the ANAF portal (Spațiul Privat Virtual). Failure to register the lease triggers penalties and may complicate the owner’s tax position. Each co-owner who receives a share of the rental income must register separately.

9. Income Tax on Long-Term Rental

In 2026, rental income from long-term letting by an individual is taxed as follows: gross rental income (the total rent received, including any amounts paid by the tenant on behalf of the landlord) minus a fixed expense deduction of 20% equals the net taxable income. Income tax is levied at 10% on this net amount. The effective tax rate on gross rental income is therefore 8% (80% × 10%).

If the tenant is an individual, the landlord self-assesses the tax and files the annual Declarația Unică (Form 212) by 25 May of the following year, paying the tax by the same deadline. If the tenant is a Romanian legal entity (company) or another entity maintaining accounting records, the tenant typically calculates the net income (after the 20% deduction) and withholds the 10% tax at the time of rent payment, remitting it to ANAF. In this case, the withheld tax is generally final.

Example: a foreign owner receives €600/month (€7,200/year) in long-term rent from an individual tenant. Net income after 20% deduction: €5,760. Income tax at 10%: €576/year. Romanian tax obligation: €576. Additional CASS may apply (see below). Additional tax may apply in the owner’s home country (see Section 27).

10. CASS Health Contribution

Beyond income tax, individual landlords may owe CASS (Contribuția de Asigurări Sociale de Sănătate) at 10% on a fixed base if their total annual passive income — from rent, dividends, interest, and certain other sources — exceeds the threshold of 6 minimum gross wages (24,300 RON in 2026, approximately €4,860). The CASS base is: 6 minimum wages if income is between 6 and 12 minimum wages; 12 minimum wages if between 12 and 24; and 24 minimum wages if income exceeds 24. CASS is declared and paid through the same Form 212 by 25 May.

For non-residents, CASS application depends on EU social security coordination rules (an A1 certificate evidencing coverage in another EU country may provide exemption) or bilateral social security agreements for non-EU nationals. Foreign landlords should verify their position with a tax adviser — the amounts involved (up to approximately €4,860 at the 24-minimum-wage base) are significant.

11–12. Short-Term Rental and Airbnb

Short-term rental of up to seven rooms in residential property owned by an individual is classified as rental income (not independent business activity) under the 2026 rules. The net income is calculated with a 30% fixed expense deduction (higher than the 20% for long-term rental), reflecting the greater operating costs. Income tax is 10% on the net income — an effective rate of 7% on gross income. CASS applies if the total passive income threshold is exceeded.

If the landlord rents more than seven rooms, the activity is reclassified as independent economic activity (activitate independentă), subject to different tax rules, registration, and potentially VAT. The seven-room limit applies across all of the individual’s properties — not per property.

Tourism Classification Certificate

Operating a short-term tourist rental requires a tourism classification certificate (certificat de clasificare) issued by the competent tourism authority. The certificate classifies the rental as a ‘rented apartment’ (apartament de închiriat) or ‘rented rooms’ (camere de închiriat) and assigns a star rating. The application requires: proof of ownership, a floor plan, compliance with minimum quality standards, and — critically — the consent of the homeowners’ association or the agreement of neighbours sharing walls horizontally or vertically with the rental unit. Operating without a valid classification certificate is prohibited and can result in fines.

13. VAT Considerations

• Long-term residential rental: exempt from VAT. The landlord does not charge VAT to the tenant and cannot deduct input VAT on related expenses.
• Commercial rental: may be exempt, but the landlord can opt to apply VAT (21% standard rate in 2026), which is advantageous when the tenant is VAT-registered and can deduct the input VAT. The option is available only to VAT-registered landlords.
• Short-term tourist accommodation: if the activity qualifies as a hospitality service (rather than simple rental), it may be subject to VAT — potentially at a reduced rate for accommodation services. If the landlord’s total taxable turnover from VAT-able activities exceeds the registration threshold, VAT registration becomes mandatory. Non-resident landlords conducting taxable activities may need to register for VAT directly or appoint a fiscal representative.

14. Renting Through a Romanian SRL

A Romanian SRL that owns or leases property can earn rental income subject to corporate taxation. The company pays corporate tax (1% of turnover under the microenterprise regime, or 16% of profit under the standard regime), can deduct actual documented expenses (maintenance, repairs, management fees, insurance, depreciation on the building — but not on land), and may register for VAT. Distribution of profits to the individual shareholder triggers dividend tax at 8%, and CASS may apply to dividend income.

The SRL model is most advantageous when: actual deductible expenses significantly exceed the individual’s fixed deduction; the property is commercial; the landlord operates multiple properties or employs staff; or the owner is a non-EU citizen who already holds property through an SRL due to the land restriction. For a single residential apartment with a reliable long-term tenant and minimal expenses, the individual regime (8% effective tax) is often simpler and cheaper than the SRL after accounting for accounting fees (€1,000–€3,000/year), dividend tax, and compliance obligations.

15. Property Management from Abroad

Foreign landlords who do not reside in Romania need a local management solution. Options include: appointing a trusted individual under a power of attorney; engaging a professional property management company; or a combination of both. A management company typically handles: tenant sourcing and screening, lease execution, rent collection and deposit management, utility payment, maintenance coordination, homeowners’ association liaison, ANAF correspondence, and emergency response.

Management fees range from 8% to 15% of collected rent for long-term rentals, and 15% to 25% for short-term (Airbnb-type) rentals where the operational burden is substantially higher. The management contract should define: the fee structure, expenditure authority limits (what the manager can spend without prior approval), reporting frequency, deposit handling, liability for damage, and termination conditions.

16. Rent Collection and Banking

A Romanian bank account is not legally required — rent can be received into a foreign bank account. However, a Romanian account simplifies: rent collection from tenants (who can transfer in RON without international fees), utility and tax payments, and management company transactions. The lease should specify: the rent amount and currency, the bank account for payment, and the moment at which the tenant’s payment obligation is deemed fulfilled. Cash payments should be avoided or minimised — bank transfers provide documented proof of income for tax purposes.

17. Security Deposits

Romanian rental practice typically involves a security deposit (garanție) of one to three months’ rent, paid by the tenant at the start of the lease. The deposit secures the landlord against unpaid rent, utility arrears, and property damage beyond normal wear and tear. The lease should clearly define: the deposit amount; the conditions under which deductions can be made; the timeline for return after lease termination (typically 30 days); the requirement for documented evidence of any damage claimed; and whether the deposit earns interest. Using the deposit as payment for the last month’s rent should be explicitly addressed in the contract — many landlords prohibit this to ensure they retain security until the property is inspected and handed back.

18. Utilities, Operating Costs, and Insurance

The lease must clearly allocate responsibility for: electricity, gas, water, internet, heating (individual or building-level), homeowners’ association fees (cheltuieli de întreținere), repair fund contributions, property insurance (the mandatory PAD is the owner’s obligation; supplementary insurance should be discussed), local property taxes (owner’s obligation), current minor repairs (typically tenant), and structural/major repairs (owner). For short-term rentals, the landlord typically bears all utility costs and factors them into the nightly rate. Commercial leases commonly include service charges covering building management, common-area maintenance, and insurance — passed through to the tenant.

19. Lease Termination and Eviction

A lease may terminate by: expiry of the fixed term (with or without automatic renewal); mutual agreement; the tenant’s voluntary departure after giving contractual notice; or the landlord’s right to terminate for cause (non-payment of rent, property damage, unauthorised subletting, illegal use). If the tenant refuses to vacate, the landlord must pursue legal eviction through the courts — Romanian law does not permit self-help remedies such as changing locks, cutting utilities, or physically removing the tenant. A lease that has been registered with ANAF may constitute an enforceable title (titlu executoriu) for unpaid rent, facilitating faster enforcement proceedings.

20. Selling a Rented Property

Under Romanian law, a lease generally survives the sale of the property — the buyer steps into the landlord’s position and must honour the existing lease terms. The seller must inform the buyer of the lease, transfer the tenant’s security deposit, and settle any outstanding rent or utility amounts. If the lease grants the tenant a pre-emption right (drept de preempțiune), the property must first be offered to the tenant on the same terms.

21. Tax Obligations in the Owner’s Home Country

Paying Romanian income tax on rental income does not automatically satisfy the owner’s tax obligations in their country of tax residence. Most countries require residents to declare worldwide income. The Romanian tax paid is typically creditable against the home-country tax under a double tax treaty, but the income must still be declared. The owner should retain: the Form 212 filings, ANAF payment confirmations, and bank statements showing rent received — these documents support the foreign tax credit claim. Currency conversion, different tax year definitions, and varying deduction rules between countries add complexity. Consultation with a tax adviser in both jurisdictions is strongly recommended.

22. Common Mistakes by Foreign Landlords

• Renting without a NIF. The NIF is required for lease registration, tax declarations, and ANAF correspondence. Obtain it before the first tenant.
• Not registering the lease. Long-term leases must be registered with ANAF within 30 days. Non-registration triggers penalties.
• Not declaring rental income. All Romanian-source rental income is taxable — whether the landlord is resident or not.
• Forgetting CASS. If total passive income exceeds the threshold, CASS is due. The amounts are significant.
• Operating Airbnb without a tourism classification certificate. Short-term tourist rental without the certificate is prohibited and subject to fines.
• No handover protocol. Without documented evidence of the property’s condition at move-in, deposit deduction disputes become unresolvable.
• Accepting only cash. Cash payments leave no documented trail for tax purposes and create disputes over payment dates and amounts.
• Using an SRL without a tax comparison. The SRL is not always cheaper — accounting costs, dividend tax, and compliance obligations can exceed the individual tax burden for a single property.
• Not declaring income in the home country. Romanian tax does not eliminate home-country obligations. Dual non-compliance is a serious risk.

23. Step-by-Step Checklist for Foreign Landlords

Frequently Asked Questions