Investing in Romanian Real Estate: A Guide for Foreign Buyers

Investing in Romanian Real Estate: A Guide for Foreign Buyers

Romania is increasingly becoming a popular choice for real estate investors. With its stunning landscapes, rich cultural heritage, and welcoming locals, it's no wonder that more people are considering purchasing property here.

However, navigating the process of buying real estate in a foreign country can be daunting, especially when it comes to understanding the rules and regulations.

Don't worry! This guide aims to simplify the process for foreign buyers interested in the Romanian property market.

We'll cover everything you need to know in a straightforward and easy-to-understand manner. For a more detailed analysis, feel free to contact our consultants at [email protected].

Can Foreigners Purchase Property in Romania?

Yes, foreigners can buy property in Romania, though there are some distinctions based on your citizenship.

• EU Citizens: If you're an EU citizen, you have the same rights as Romanian citizens when it comes to purchasing property. This includes the ability to buy buildings and land, such as agricultural or forest land.
• Non-EU Citizens: Non-EU citizens can also purchase buildings without significant restrictions, including apartments and houses. However, owning land is more complicated. Generally, non-EU citizens cannot directly own land. Instead, you might need to establish a Romanian company through which you can purchase land.

There's no requirement to live in Romania to buy property. Owning real estate here does not automatically grant you residency rights; the property purchase process and applying for residency or visas are separate matters. However, owning property can positively impact your residency application if you choose to apply.

The Buying Process

The property buying process in Romania for foreigners is quite straightforward and similar to that for local buyers.

Here are some key points to keep in mind:

• No Special Authorization Needed: Typically, you do not need special authorization from government institutions to purchase property as a foreigner.
• No Minimum Investment Requirement: There is no minimum investment threshold for buying property, making it accessible for a range of budgets.
• Straightforward Process: The steps involved in buying property are simple and transparent, ensuring a smooth transaction.

Residency Through Property Ownership

• Romania does not have a specific residency-by-investment program directly linked to real estate purchases, unlike some other countries. This means that buying property alone does not automatically entitle you to residency in Romania.

However, owning property can support your residency application under other categories. Here are some common pathways to residency:

• Employment: Getting a job in Romania can be a route to residency.
• Starting a Business: Establishing a business in Romania can also lead to residency, although the real estate investment itself does not count towards the required business investment.
• Studying: Enrolling in a Romanian educational institution.
• Family Reunification: Joining a family member who is already a resident or citizen.

For non-EU citizens, starting a business or securing employment are common routes to residency. Initially, temporary residency permits are usually granted for one year and can be renewed. After living in Romania continuously for five years on a temporary residency permit, you can apply for permanent residency, which involves proving your continuous stay, financial stability, and good conduct (e.g., no criminal record).

Permanent residents can apply for Romanian citizenship after maintaining their residency status for a certain number of years, typically around eight years. This process includes demonstrating proficiency in the Romanian language and an understanding of Romanian culture and legal systems.

While property ownership does not directly lead to residency, it can demonstrate your commitment to Romania and your financial stability, potentially supporting your residency application under other categories.

Conclusion

Investing in Romanian real estate offers a wealth of opportunities, whether you are looking for a new home, a vacation property, or an investment opportunity. While the process might seem complex at first, understanding the basics can make your experience much smoother. Whether you're an EU or non-EU citizen, Romania's property market is accessible and inviting, with no significant restrictions for building purchases.

For more information feel free to reach out to our consultants at [email protected]