Romania – Property Letting

How does the property letting process work in Romania?

Earning an income by renting out property — whether residential or commercial — is a well-established practice across Romania. The process from start to finish involves advertising the property, identifying and screening prospective tenants, drawing up and executing a written lease, registering that agreement with the tax authority, and maintaining ongoing legal compliance for the duration of the tenancy.

Landlords typically advertise through Romania’s main property portals. Sites such as Imobiliare.ro and OLX.ro carry a wide range of listings across different price brackets, and dedicated Facebook rental groups provide another avenue, though the reliability of listings can vary considerably. Foreign-based landlords and those new to the Romanian market frequently choose to engage a local agent to manage marketing and tenant screening on their behalf.

Romanian law requires that a tenancy agreement be provided to the tenant in written form. The document must identify both parties by name, specify the address of the rented property, state the rent amount, set out the duration of the tenancy, and include any additional conditions agreed upon. Unlike some common-law systems where oral agreements may carry limited legal weight, a written contract is not optional in Romania — it is a legal requirement.

Leases may be concluded for a fixed period or structured to renew automatically. A one-year term is the most common for residential tenancies, although longer durations are possible. Agreements of under one year are treated as short-term leases in Bucharest and tend to command higher rents, partly reflecting the administrative burden on landlords of processing paperwork afresh with each new occupant.

Following execution of the contract, the landlord is legally obliged to register it with ANAF within 30 days. This registration establishes an official record of the tenancy for fiscal purposes and, in certain circumstances, gives the lease the force of an enforceable instrument in relation to specific contractual obligations.

Romania does not have a dedicated national tenancy register of the kind found in Ireland or Scotland, where all private lettings are recorded centrally in a housing-sector database. The ANAF registration system functions primarily as a tax compliance tool rather than a housing registry.

It is also advisable to register the lease in the Romanian Land Book. Without this step, a tenant’s right to occupy the property may not be recognised by a new owner should the property be sold during the tenancy. This consideration is especially significant for longer-term lettings and can offer meaningful protection to both parties.

What types of rental arrangements are available in Romania?

Landlords in Romania may opt for long-term residential letting, short-term furnished letting, or holiday and tourist letting through online platforms. Each route carries its own administrative, tax, and authorisation requirements, and it is important to identify the correct category before proceeding with any letting activity.

Romanian law broadly distinguishes between two categories of lease: residential lease agreements, which apply to properties used as homes and tend to offer greater tenant protections against arbitrary treatment; and commercial lease agreements, which are designed for business use. The residential lease category will be the relevant one for the vast majority of expat landlords.

Short-term tourist accommodation — that is, renting furnished premises to visitors through platforms such as Airbnb, Booking.com, or Vrbo — is governed by a separate legal and tax framework. Landlords operating in this space must obtain a functioning permit, though the standards required for such a permit fall well short of those demanded for a conventional hotel operation.

Romania’s National Agency for Fiscal Administration (ANAF) is actively stepping up efforts to identify individuals receiving undeclared income through platforms such as Airbnb and Booking.com, with around 23,000 individuals currently under review for potential tax non-compliance in the property rental space. This represents a clear intensification of enforcement activity within the holiday-let sector.

The Romanian Government has indicated its intention to impose penalties of between RON 10,000 and RON 40,000 (approximately €2,009–€8,037) on property owners who advertise accommodation without the necessary authorisation. Landlords must ensure their short-term or tourist letting operation is properly classified and authorised prior to listing on any platform.

In multi-apartment buildings, any change to the intended residential use of a flat must receive the approval of the neighbouring owners who are directly affected. This requirement is frequently overlooked by those seeking to convert a residential apartment into a short-term holiday let. It is also worth noting that Romania’s regulatory framework for short-term rentals is not applied uniformly across the country, and local rules can differ substantially between cities and municipalities.

What rental income can landlords expect, and how are rates set?

Romania does not operate a rent control regime for private residential lettings. Rental amounts are freely negotiable between the landlord and the tenant. Rent may be linked to inflation, and such indexation clauses are commonplace. Staged annual increases can also be lawfully included in the contract. As of 2025, there are no rent pressure zones, statutory rent ceilings, or mandatory national indexation rules applicable to private residential lets.

Achievable rental income in Romania varies according to factors including location, property type, size, and prevailing market conditions. To establish a competitive and realistic rent, landlords should research current market rates in the relevant area. Property websites and local management companies are useful sources of data on pricing trends and demand.

Monthly rents are commonly quoted in Euros but are frequently paid in Romanian Lei (RON) at the prevailing exchange rate. Bucharest achieves the highest rental levels nationally, with major urban centres such as Cluj-Napoca, Timișoara, and Iași following in descending order. Rural and smaller provincial markets generally produce considerably lower returns. Checking live listings on platforms such as Imobiliare.ro is the most reliable way to gauge current achievable rents before setting a price.

Lease agreements in Romania typically include provisions governing rent increases, specifying when increases may occur, how frequently, and subject to what limits. Where an inflation-linked clause is included, it is advisable to name the specific index being used — for example, the Consumer Price Index published by the Romanian National Institute of Statistics — in order to avoid future disputes. Landlords should consult the Romanian National Housing Agency or a local legal adviser for any updates to rental market regulation.

Do landlords need to provide a furnished or unfurnished property in Romania?

Romanian law does not impose any obligation on landlords to let their properties in a furnished condition. In practice, however, the residential letting market — particularly in cities — strongly favours furnished properties. It is not uncommon for tenants to request modifications as part of pre-tenancy negotiations, such as adding specific items of furniture or removing pieces already in the property. In Bucharest and other major cities, offering a well-appointed furnished property to a reasonable standard is effectively a market expectation rather than a legal one.

There is no statutory minimum furnishing standard for private residential lettings in Romania equivalent to the “fit for human habitation” provisions that incorporate basic furnishing requirements in certain other jurisdictions. Instead, the condition and contents of the property are dealt with through the lease agreement and a detailed handover inventory — known as a “process verbal de predare-primire” — which should be signed by both parties at the commencement and conclusion of the tenancy to record the state of the property and its contents.

Whether a property is furnished or not does not alter the landlord’s fundamental tax or legal obligations. However, owners deriving income from renting out up to five rooms for tourist purposes during a tax year are subject to income tax calculated on the basis of an annual income quota — a distinct treatment from standard long-term letting income, reflecting the separate regulatory treatment of the furnished short-stay market. Landlords letting fully furnished properties for tourist or short-stay purposes should confirm current classification requirements with the Ministry of Entrepreneurship and Tourism.

Do you need a licence or registration to let a property in Romania?

No general landlord licence is required for standard long-term residential letting in Romania. However, all landlords — whether resident or non-resident — must register their tenancy agreements with ANAF, the National Agency for Fiscal Administration, within 30 days of signing. Failure to do so can attract tax penalties and may compromise the enforceability of the contract.

The position is considerably more complex for short-term and holiday letting. Landlords offering Airbnb-style accommodation must obtain a functioning permit, although the requirements for such a permit are noticeably less onerous than those imposed on commercial hotel operations. Properties made available to tourists must also be formally classified by the Ministry of Entrepreneurship and Tourism. More than 13,800 apartments and rooms currently hold the relevant classification in Romania and are therefore authorised to appear on booking platforms; however, it is widely believed that a much larger number of properties are operating without the necessary authorisation.

Romania’s Ministry of Economy, Entrepreneurship and Tourism is specifically targeting property owners who earn money from platform-based rentals without authorisation and without paying the associated taxes. Those found to be flouting these requirements face the prospect of substantial fines.

Applicable requirements may vary depending on the type of property and its location. Operating a short-term rental in Romania requires specific permissions in connection with the lease arrangement, and some properties — particularly flats in shared buildings — may additionally require approval from the homeowners’ association. Non-resident landlords are subject to the same core registration requirements as Romanian residents, but should take particular care to verify their current obligations with ANAF and, where appropriate, with their local municipality, given that requirements and enforcement are actively evolving.

How do you register a tenancy contract or obtain a licence in Romania?

The steps below describe the process for registering a standard long-term residential tenancy contract with ANAF and, where applicable, obtaining the authorisation required for short-term tourist letting. Always verify current procedures with the official ANAF portal or a local tax adviser, as requirements are subject to change.

1. Draft and sign a written lease agreement. The contract must be in written form and executed by both parties. It must state the property address, the full names of both landlord and tenant, and the duration of the tenancy. Landlords may optionally have the contract notarised — at a cost of approximately 0.5% of the total contract value — which renders it directly enforceable as a writ of execution without the need for a separate court order.
2. Prepare supporting documents. You will generally need a copy of your identity document or passport, evidence of ownership of the property (an extract from the Land Book), and the executed lease. Non-resident landlords may also be required to obtain a tax identification number (CIF) from ANAF before proceeding.
3. Register the contract with ANAF. The ANAF registration process was streamlined in 2025: for jointly owned properties, a single designated co-owner may now register on behalf of all owners. Registration can be completed electronically through ANAF’s online platform (Spațiul Privat Virtual) for registered users, using the updated registration form (C168). In-person registration at your local ANAF office remains an option.
4. Complete registration within the deadline. Registration with ANAF is a legal obligation of the landlord and must be fulfilled within 30 days of the date the contract is signed.
5. For short-term tourist letting: apply for property classification. Submit an application to Romania’s Ministry of Entrepreneurship and Tourism to obtain formal classification of the property as tourist accommodation. The classification process involves an inspection to confirm the property meets the standards applicable to the relevant category (e.g. apartment, room, villa). Consult the Ministry’s official website for the current application form, fee schedule, and documentation requirements, as these are periodically updated.
6. Register income and file annual tax returns. The deadline for submitting the single tax return and settling the related tax liabilities arising from letting income is 25 May of the year following the year in which the income was received. Non-resident landlords must ensure they are registered with ANAF for tax purposes before this deadline falls.

What are the rules around deposits in Romania?

Romanian law permits landlords to request a security deposit from tenants, typically equivalent to one or two months’ rent. On termination of the tenancy, the deposit must be returned to the tenant, minus any justified deductions. Deposits may be set at a higher level for newly furnished properties.

Unlike the United Kingdom, Ireland, or Australia — all of which operate government-backed deposit protection schemes requiring landlords to lodge deposits with regulated third-party custodians — Romania has no equivalent statutory arrangement as of 2025. Deposits are held directly by the landlord and are not required to be placed in a separate protected account. In practice, this means the security of the deposit rests almost entirely on the terms of the lease rather than on any external regulatory safeguard.

The lease agreement should clearly define the circumstances in which deductions may be made from the deposit — for example, outstanding rent arrears, damage beyond normal wear and tear, or unpaid utility charges — as well as the timescale within which the deposit must be returned once the tenancy has ended. Where a tenant has caused damage to the property, they bear responsibility for its repair, and the landlord is entitled to deduct the associated costs from the deposit.

Romanian law does not impose a statutory cap on the amount of a security deposit, meaning the figure is determined by negotiation and recorded in the contract. In practice, deposits in excess of one to two months’ rent are unusual, and landlords seeking substantially more may find it harder to attract tenants. The security deposit amount and the conditions governing its return should be clearly documented in the tenancy agreement. Landlords uncertain about their position are advised to consult the current Civil Code provisions and seek legal advice.

Who is responsible for maintenance and repairs in Romania?

Under the Romanian Civil Code, a landlord is obliged to hand over the leased property to the tenant in a condition fit for its intended use as agreed in the contract, and to keep it in that condition throughout the duration of the lease. This constitutes the baseline legal standard from which both parties’ obligations flow.

As a general principle, landlords bear responsibility for structural repairs, while tenants are expected to handle routine upkeep and minor day-to-day repairs. The contract should specify how significant repair works are to be managed and who is responsible for the associated costs. This division broadly mirrors the maintenance split found in many European rental markets, although Romanian law gives the parties considerable freedom to adjust these obligations through the terms of the agreement.

The landlord must ensure the rental property remains safe and habitable throughout the tenancy. This encompasses structural soundness, the availability of running water and electricity, and freedom from pest infestation. These are minimum standards that cannot be excluded by contract. It should also be noted that in Romania, basic building insurance covering the property against weather-related hazards — including fire and windstorm — is compulsory.

The tenant is expected to maintain the rental unit in a clean and orderly state, including proper disposal of waste and avoidance of any damage to the property. In the event of a dispute about the condition of the property, the signed inventory (process verbal) completed at the start of the tenancy will serve as the primary point of reference. Pursuing a dispute through the courts is possible but may take between one and a half and two years to resolve, which underlines the practical importance of thorough contractual provisions and a comprehensive inventory at the outset.

How are letting agents used in Romania, and what do they charge?

A significant number of property owners in Romania work with real estate agents to assist with the letting process. Agents can provide support across a range of activities including property marketing, tenant screening, rent negotiations, and ongoing lease management. Choosing a reputable and properly accredited agent is important to ensuring a smooth letting experience.

Romania has no statutory equivalent to the United Kingdom’s Tenant Fees Act 2019, which restricts what agents may charge tenants. Agency fees in Romania are not subject to any legislative cap for either landlords or tenants — real estate agents are entitled to charge remuneration as agreed with their clients, making fees a matter of market practice rather than legal prescription.

In practice, as of 2025, letting agent commissions typically fall in the range of 50% to 100% of one month’s rent, and in some cases up to the equivalent of two months’ rent. Historically, this fee has been shared between landlord and tenant — frequently on an equal basis — though in a competitive market some landlords elect to cover the entire cost themselves in order to secure a tenant more promptly. Fee arrangements should always be confirmed in writing before any agent is formally instructed.

For foreign landlords managing property from abroad, a full property management company — distinct from a straightforward letting agency — can provide an extended suite of services including rent collection, maintenance coordination, tenant liaison, and ANAF compliance management. These ongoing services typically attract a monthly management fee charged in addition to the initial letting commission. The National Authority for Consumer Protection (ANPC) can supply information on accredited real estate professionals. Readers should verify current market rates and any regulated fee structures with the ANPC or a local legal adviser.

What taxes apply to rental income in Romania?

Romania levies personal income tax at a flat rate of 10%. In the context of rental income, this rate applies to net taxable income. As of 2025, landlords may choose between two methods for arriving at net income: applying a standard 40% flat-rate deduction against gross rent received, or deducting actual documented expenses. The flat-rate approach is simpler and is by far the more common choice among individual landlords.

In practical terms, both short-term rental income and long-term residential letting income for individuals are taxed at a flat 10%, calculated either on revenue net of the 40% allowance or on the basis of verified actual expenditure.

Health insurance contributions (CASS) may also be payable. A CASS liability arises where the annual net rental income, taken alone or combined with income from other personal income categories, exceeds the minimum threshold established by law. For 2025, this threshold stands at the equivalent of at least six minimum gross salaries, amounting to RON 24,300. The annual taxable base for health insurance contribution purposes is capped at 24 minimum gross salaries, equating to RON 97,200.

The Romanian tax treatment of individuals depends on their residence status. Romanian tax residents are taxed in Romania on their worldwide income, while non-Romanian tax residents are subject to Romanian tax only on income derived from Romanian sources. This means that non-resident landlords earning rental income from property located in Romania remain liable to Romanian income tax on that income regardless of where they are domiciled.

The deadline for submitting the single tax return and paying the associated tax liabilities on letting income is 25 May of the year following the year in which the income was received. Most expats submit their returns digitally through the ANAF online portal.

The tax treatment changes for landlords who let more than five rooms for tourist purposes. Individuals receiving income from renting out more than five rooms for touristic purposes will, from the following tax year, have that income reclassified as income from independent activities, with the corresponding taxation rules applying from that point.

Where actual documented expenses are used rather than the standard deduction, costs directly associated with generating rental income — such as maintenance, cleaning, and other operating expenditure — may be deducted from gross income. Romania’s tax framework underwent significant changes in August 2025 and January 2026, including adjustments to VAT rates, dividend taxes, and capital gains taxes. It is therefore essential to take advice from a local tax professional and to consult the official ANAF website (anaf.ro) for current guidance before filing any return.

What are the rules around ending a tenancy or evicting a tenant in Romania?

Romanian law provides landlords with reasonable rights to bring a tenancy to an end, but tenant protections mean that the prescribed process must be followed carefully. There are no statutory restrictions on termination rights or rent increases in the private rented sector, affording both parties considerable contractual freedom — though recovering physical possession of the property requires care.

Tenants holding an indefinite-period lease may unilaterally terminate the agreement by serving notice corresponding to at least one quarter of the rent payment interval, while for fixed-term leases a minimum of 60 days’ prior notice is required. Landlords should ensure that symmetrical notice rights are reflected in the contract.

One of the most significant tenant protections in Romanian law is the winter eviction ban: regardless of the grounds relied upon, a tenant may not be evicted during the winter months. This rule can materially delay possession recovery for landlords who commence proceedings in the autumn.

A typical eviction takes between one and two months, as Romanian law provides a special accelerated possession procedure for rented properties. Under this procedure, a bailiff serves the tenant with an eviction notice requiring them to vacate within 30 days. In practice, however, proceedings can extend beyond six months where tenants resist eviction and seek the protection of the courts.

Landlords can substantially strengthen their position by structuring the contract appropriately from the outset. Rendering the lease a writ of execution — either by registering the agreement with the tax authority or by executing it in notarised form, which carries a cost of approximately 0.5% of the total contract value — means that forced eviction through a bailiff can be pursued directly without first obtaining a court judgment.

Romanian law sets out specific procedures for evicting tenants, including the requirement to demonstrate a valid ground — such as non-payment of rent or a material breach of the lease. Compared with jurisdictions that permit “no fault” eviction, such as the former Section 21 procedure in England, Romania requires landlords to establish a reason for seeking possession, making the process more protective of tenants in that respect. Once valid grounds are established, however, the accelerated procedure and enforcement through a bailiff can make recovery of possession relatively swift.

What should expat landlords know about managing property remotely?

Foreign nationals who let property in Romania while based abroad face a number of additional practical and legal considerations. With the right structures in place, however, remote management is entirely workable and is a common arrangement among expat property owners.

The single most important instrument for a remote landlord is a notarised power of attorney (procura), which authorises a trusted individual or professional based in Romania to act on your behalf. This authority can extend to signing contracts, dealing with ANAF, overseeing maintenance, and representing you in any dispute. Without such an instrument, managing even routine matters from abroad is extremely difficult in practice.

As noted above, Romanian taxation turns on an individual’s residence status. Non-Romanian tax residents are subject to Romanian income tax on income derived from Romanian sources. Rental income from property situated in Romania received by a non-resident individual is therefore taxable in Romania at the standard 10% flat rate, and the landlord must register with ANAF and submit a Romanian tax return. A non-Romanian individual who qualifies as a Romanian tax resident may remain liable to Romanian income tax only on Romanian-sourced income if they can produce a tax residence certificate from a country with which Romania has concluded a double taxation treaty. Romania maintains an extensive network of such treaties, so it is well worth checking whether a relevant agreement exists with your country of residence.

There are no exchange controls restricting the transfer of rental proceeds out of Romania, and income can generally be remitted abroad freely. Non-resident landlords should, however, factor in the cost of currency conversion, given that rents are frequently paid in Romanian Lei (RON).

For non-residents, engaging a reliable local property management company is strongly recommended. A competent manager can handle marketing, tenant screening, contract management, and ANAF filings, significantly reducing the risk of penalties arising from missed deadlines. Given the substantial changes to Romania’s tax framework introduced in 2025 and 2026, professional local tax advice is particularly valuable for non-resident landlords who may not be following legislative developments closely.

Frequently asked questions

Can a non-resident own and let property in Romania?

Yes. Non-residents are entitled to own and let residential property in Romania. Restrictions do apply to foreign nationals purchasing agricultural land, but there is no general prohibition on letting residential or commercial property. Non-resident landlords are liable to Romanian income tax on rental income at the standard 10% flat rate (as of 2025) and must register with ANAF. Always consult the official ANAF website and a local tax adviser for current requirements.

Do I need to register my rental contract with the Romanian tax authority?

Yes — registering the tenancy agreement with ANAF is a legal obligation of the landlord and must be completed within 30 days of the contract being signed. Registration establishes an official record of the tenancy for the tax authorities. Failure to register may attract tax penalties and can undermine the enforceability of the contract. Registration can be carried out electronically through ANAF’s online platform (Spațiul Privat Virtual).

Is there a landlord licence for long-term residential letting in Romania?

No specific landlord licence is required for long-term residential letting. The principal compliance obligation is to register the lease with ANAF within 30 days of signing and to file annual income tax returns. Short-term tourist letting is subject to a separate requirement to obtain classification and authorisation from the Ministry of Entrepreneurship and Tourism.

Do I need a local agent to let my property in Romania?

There is no legal requirement to use an agent for long-term residential letting. For landlords based outside Romania, however, appointing a local agent or property manager is strongly advisable for practical reasons — including tenant vetting, contract administration, ANAF registration, and maintenance oversight. As of 2025, agent fees typically range between 50% and 100% of one month’s rent and are often shared between landlord and tenant, though this is a matter for negotiation.

How is rental income from Romania taxed if I live abroad?

Non-Romanian tax residents are liable to Romanian income tax on income arising from Romanian sources, including rental income. The applicable rate is a 10% flat tax on net income calculated after a 40% standard expense deduction (as of 2025). You must register with ANAF, obtain a Romanian tax identification number, and submit an annual return by 25 May each year. Double taxation treaties may mitigate or eliminate any corresponding liability in your country of residence — you should check the relevant treaty and obtain advice from a tax professional.

What happens to my tenant’s deposit if I sell the property?

The sale of a leased property does not automatically bring the lease to an end unless both parties have expressly agreed otherwise. The lease and any associated deposit transfer to the new owner upon completion of the sale, and the departing landlord should ensure that any deposit held is formally transferred to the incoming owner, with the arrangement documented in writing to protect all parties. Romania has no statutory deposit protection scheme, so the contractual terms of the lease govern the process throughout.

Can I let my property on Airbnb in Romania without a licence?

No — operating a short-term tourist rental through platforms such as Airbnb without the required classification from the Ministry of Entrepreneurship and Tourism is not permitted. The Romanian Government intends to impose fines of between RON 10,000 and RON 40,000 (approximately €2,009–€8,037) on property owners who advertise accommodation without proper authorisation. Short-term rental platforms may also be required to share data about listings and transactions with ANAF to facilitate tax compliance. The necessary authorisation must be obtained before any listing is published.

Can a landlord evict a tenant in winter in Romania?

Under Romanian law, tenants cannot be evicted during the winter months, irrespective of the grounds relied upon for the eviction. This is a protection that landlords must take into account when planning any possession proceedings. Where eviction becomes necessary, it is advisable to initiate the process before the winter period begins. A typical eviction under Romania’s accelerated possession procedure takes between one and two months and is carried out by a bailiff, who serves the tenant with notice to vacate within 30 days — though the process can take considerably longer if the tenant contests the eviction through the courts.