Legal Restrictions on Ownership/Sale by Foreign Nationals in Romania
There are no restrictions on the ownership of property by foreign nationals in Romania. According to the Romanian Constitution, all citizens, regardless of their nationality, have the right to acquire and dispose of property. The same rights are extended to foreign nationals in Romania, with the exception of certain restrictions on owning agricultural land and forests.
In general, foreign nationals can purchase property in Romania through a registered company or by registering a property in their own name. In order to purchase a property, foreign nationals must have a Romanian ID number, which can be obtained by submitting a residency permit application.
Average Property Prices in Romania
The average property prices in Romania vary depending on the location and type of property. Currently, the average price for a one-bedroom apartment in the capital city of Bucharest is around €80,000, while a three-bedroom apartment can cost anywhere from €120,000 to €200,000.
In other major cities such as Cluj-Napoca, Timisoara, and Iasi, the average prices for apartments are lower, ranging from €50,000 to €80,000. However, the prices of properties in these cities are steadily increasing due to the growing popularity of these cities as investment destinations.
The prices of rural properties and villas are generally lower compared to those in the cities, with an average price of around €50,000 to €80,000. The prices of land in Romania vary greatly depending on the location, with prices ranging from €100 per square meter in rural areas to €400 per square meter in the cities.
Popular Locations for Property Purchase in Romania
The most popular location for foreign nationals to purchase property in Romania is the capital city of Bucharest. The city offers a vibrant cultural scene, a large expat community, and a growing economy, making it an attractive option for foreign investors. Other popular locations include the cities of Cluj-Napoca, Timisoara, and Iasi, which are also growing in popularity due to their growing economies, affordable property prices, and high quality of life.
Upcoming Areas in Romania
There are several new and upcoming areas in Romania that are becoming attractive options for foreign nationals when considering buying property. These include the cities of Braila, Bacau, and Ploiesti, which offer lower property prices compared to other major cities in Romania. Additionally, the coastal city of Constanta is also becoming an attractive option for foreign nationals due to its growing economy and beautiful beaches.
Trends in the Property Market in Romania
The property market in Romania is currently experiencing a period of growth and stability, with prices increasing steadily due to a growing economy and increasing demand for properties. Additionally, the Romanian government has implemented several measures aimed at improving the property market, such as the reduction of property transfer tax and the streamlining of the property registration process.
Another trend in the property market in Romania is the growing popularity of holiday homes and vacation properties, as more and more foreign nationals are looking to invest in properties in Romania for rental purposes. This trend has led to the development of several new holiday home communities and resorts, offering a variety of properties to suit different budgets and preferences.
Is Buying Property a Good Investment in Romania?
Yes, buying property in Romania can be a good investment. The property market in Romania is currently experiencing a period of growth and stability, with prices increasing steadily due to a growing economy and increasing demand for properties. Additionally, the Romanian government has implemented several measures aimed at improving the property market, making it an attractive option for foreign investors.
Typical House Buying Procedure in Romania
Property Inspection: Before making an offer, it is advisable to inspect the property thoroughly. This includes checking the property’s condition, legal status, and if there are any outstanding debts or obligations on the property.
Make an Offer: Once you have decided to proceed with purchasing the property, you should make an offer through a licensed real estate agent or directly to the owner. The offer should include the purchase price, payment terms, and conditions.
Surveys/Inspections: A building survey and/or inspection by a specialist is usually required to assess the condition of the property. This is particularly important for older properties, or those that have been altered in any way.
Contract Signing: After the offer has been accepted, the next step is to sign a preliminary sales contract (promissory contract). The contract should be reviewed and approved by a legal representative before signing.
Notary Involvement: A notary is required to complete the transfer of ownership. The notary will check the legal status of the property, the seller’s identity, and the contract’s validity.
Payment and Transfer of Ownership: After the contract has been signed, the final payment should be made, and the transfer of ownership should be completed. The notary will provide a certificate of ownership.
Finding a Reputable Lawyer in Romania
Recommendations: Ask for recommendations from friends, family, or other expats who have purchased property in Romania.
Professional Organizations: You can also look for lawyers who are members of professional organizations, such as the Romanian Bar Association.
Research: Research online and read reviews from other clients to get an idea of a lawyer’s reputation and experience.
Fees: Lawyers in Romania typically charge a percentage of the property’s value, ranging from 1% to 5%. It is important to discuss fees upfront to avoid any surprises.
Pitfalls and Problems
Language barriers: Romania has two official languages, Romanian and Hungarian, which can make communication with local authorities and legal representatives difficult for some expats.
Complex regulations: The Romanian legal system can be complex, and it is important to have a good understanding of the local laws and regulations before purchasing property.
Hidden costs: Hidden costs, such as taxes, fees, and charges, can add significantly to the overall cost of purchasing property in Romania. It is important to be aware of these costs and factor them into your budget.
Purchasing Property Through a Company in Romania
It is possible to purchase property through a company in Romania. This is a popular option for expats who want to keep their personal assets separate from their business assets. However, it is important to seek professional advice before proceeding with this option.