As Romania continues its progress towards EU accession with its entry date confirmed as January 2007, so the rules relating to foreign freehold ownership of land and property in Romania are changing to come in line with the European Unionís regulations.
This bodes well for the investment property market in Romania because currently non-Romanian citizens are not permitted to own land in Romania unless they purchase it through a Romanian company structure.
The property-buying process in Romania is largely unknown to foreign buyers, yet it can be relatively simple and efficient with the appropriate knowledge and preparation. Three people can make the buying process simple, secure and successful for you: a professional estate agent/property consultant, a reputable solicitor/lawyer and the notary.
The first thing you have to do when looking to buy Romanian property is find your property. Start by deciding on the type of property and location you are interested in. Whether a newly-built coastal apartment, a villa in a skiing resort or a city centre flat, or maybe just a plot of raw land, define your objective clearly from the onset. This will help focus your efforts and reduce the time, energy and money spent in the process. If you are buying land or the property has land with it and you want to own the land, set up a Romanian company.
After youíve found the a piece of Romania that is of interest to you negotiate the price with the seller and make a verbal offer. All this time you were helped by a reputable property consultant and/or estate agent and youíve informed them about your requirements. They should be able to find a suitable property or plot of land for you. When you have a list of offers that meet your criteria, fly over to Romania and view and scrutinize each offer thoroughly. If you see something that you like on this visit, you can start negotiating a better price and if satisfied make an offer. When your offer is accepted, proceed to step two.
After your legal adviser verifies that the seller has the right to sell that property you can proceed to signing a contract that has been overviewed by your legal adviser. This is a preliminary contract and it allows you to secure your property for a small deposit to the seller, usually 10%20% of the full price.
After the legal adviser has made the final checks and can assure you that the property is safe to buy you can sign the full contract, make the final payment, sign the notary deed and pay stamp duty and the notary fee and you may call yourself now owner of a Romanian property.
Foreign citizens are allowed to own property directly but cannot own land. This restriction will change with membership of the EU. Currently, the most practical way for foreign investors to purchase land is by setting up a limited company in Romania. This does mean there is some additional paperwork but our local partners take care of this and there can be some tax advantages in this form of ownership.
The Romanian Constitution only restricts non-Romanians from owning land in Romania - it does not prevent foreigners from owning buildings constructed on land in Romania. It is therefore perfectly possible for non-Romanians to purchase flats in Romania.
Purchasing property in European countries can be a tricky task for some non-Romanian citizens. A fair amount of knowledge and patience is required to complete the purchase as well as a substantial amount of financial resources to secure the property. Romania is a beautiful and mysterious country with wonderful opportunities for real estate for those who know what to look for. Learn how to locate and buy property in Romania.
This being said we invite you to find your own piece of Romanian paradise.