Table of Contents
- Executive Summary: Key Regulatory Updates in 2025
- Overview of Romania’s Real Estate Legal Framework
- Land Ownership Laws: Citizens, Foreigners, and Corporate Buyers
- Building Permits and Zoning: Latest Procedures and Challenges
- Taxation and Fiscal Obligations in Real Estate Transactions
- Compliance with Anti-Money Laundering and Transparency Requirements
- Notary and Registry Processes: Step-by-Step Guide
- Dispute Resolution: Common Issues and Legal Recourses
- Recent Case Studies and Official Statistics from Romanian Authorities
- Future Outlook: Anticipated Regulatory Trends and Policy Proposals (2025–2030)
- Sources & References
Executive Summary: Key Regulatory Updates in 2025
In 2025, Romania’s real estate regulatory landscape is experiencing significant changes driven by European Union directives, national legislative reforms, and increased compliance scrutiny. The focus remains on enhancing market transparency, investor protection, and sustainable urban development. Key legislative amendments have targeted the licensing of real estate professionals, anti-money laundering (AML) obligations, and digitalization of property registration processes.
- Professional Licensing and Oversight: In January 2025, amendments to Law No. 253/2023 came into force, requiring stricter qualifications and ongoing professional education for real estate agents. The National Authority for Consumer Protection now exercises broader oversight, ensuring agents comply with transparency and consumer information standards.
- Anti-Money Laundering (AML): The National Office for Prevention and Control of Money Laundering intensified enforcement in the real estate sector, mandating more rigorous customer due diligence and transaction reporting. As of 2025, real estate professionals must conduct enhanced verification for high-value transactions, aligning with EU Directive (EU) 2018/1673.
- Digital Land Registration: The National Agency for Cadastre and Real Estate Publicity expanded its eTerra platform, streamlining online property registration and title verification. By June 2025, over 85% of property transactions are processed digitally, reducing processing times and increasing accuracy.
- Urban Planning and Green Standards: In line with the EU Green Deal, local authorities are implementing new zoning requirements and incentives for energy-efficient buildings. The Ministry of Development, Public Works and Administration has issued guidelines for sustainable construction, with compliance checks expected to intensify through 2026.
Recent data from the National Institute of Statistics indicates a 7% year-on-year increase in residential construction permits issued in Q1 2025, reflecting optimism but also the need for robust regulatory controls. Authorities anticipate further updates, particularly regarding digital property transaction standards and cross-border investment transparency. Over the next few years, continued alignment with EU norms and enhanced digital infrastructure are expected to underpin Romania’s real estate regulatory framework.
Overview of Romania’s Real Estate Legal Framework
Romania’s real estate sector operates within a comprehensive legal framework that has undergone significant modernization since the country’s accession to the European Union in 2007. The primary legal sources governing real estate transactions are the Romanian Civil Code (2011), the Land Registration Law no. 7/1996 (as subsequently amended), and various sector-specific regulations. These statutes regulate property rights, sale and lease agreements, mortgage, land registration, and urban planning permissions.
The Ministry of Justice oversees the legislative framework, while the National Agency for Cadastre and Land Registration (ANCPI) is responsible for property records, cadastral mapping, and land book registrations. Real estate titles must be registered in the electronic Land Book system operated by ANCPI, ensuring legal security and transparency of ownership. In 2024–2025, authorities have continued digitalization efforts, aiming for full electronic processing of land records and property transactions by 2026.
Foreign individuals and entities may acquire real estate in Romania with some restrictions: EU and EEA citizens can own land under similar conditions as Romanians, while non-EU citizens may purchase buildings but not land directly, unless permitted by international treaties or reciprocity (National Agency for Cadastre and Land Registration). Agricultural land purchases are specifically regulated under Law no. 17/2014, imposing preemptive rights and notification procedures to protect local interests.
Construction and urban development are regulated by Law no. 50/1991 (on construction works authorization) and Law no. 350/2001 (on urban planning), requiring various permits and compliance with zoning plans. Local authorities, under the oversight of the Ministry of Development, Public Works and Administration, issue building permits, and regularly update General Urban Plans (PUGs) and Zonal Urban Plans (PUZs) to guide real estate development.
Compliance with environmental regulations, fire safety, and anti-money laundering (AML) requirements is mandatory for all real estate transactions. The National Office for Prevention and Control of Money Laundering has intensified supervision of property deals in 2024–2025, focusing on transparency and the identification of ultimate beneficial owners.
According to ANCPI, over 700,000 real estate transactions were registered in 2023, with a moderate growth forecast for 2025, driven by urbanization and commercial development. Continued legislative harmonization with EU directives, increased digitalization, and the implementation of stricter compliance controls are expected to shape Romania’s real estate legal framework through 2025 and beyond (National Agency for Cadastre and Land Registration).
Land Ownership Laws: Citizens, Foreigners, and Corporate Buyers
Romania’s land ownership laws have undergone significant changes since its accession to the European Union, shaping the landscape for citizens, foreigners, and corporate entities involved in real estate. As of 2025, the fundamental legal framework is provided by the Romanian Constitution and the Civil Code, with specific regulations under Law no. 312/2005 regarding the acquisition of property by foreign citizens and stateless persons. Romanian citizens and Romanian legal entities have unrestricted rights to acquire land, whether for residential, commercial, or agricultural purposes.
- Citizens: Romanian nationals, both individuals and companies, can freely acquire and own land throughout Romania. Ownership is protected under Article 44 of the Constitution, which guarantees property rights and outlines expropriation only for public utility and with fair compensation (Constitutional Court of Romania).
- Foreigners: Since 2012, citizens and legal entities from EU and EEA member states have enjoyed the same land acquisition rights as Romanian citizens, a requirement following EU accession. However, nationals and companies from non-EU/EEA countries face restrictions: they may generally acquire land only through Romanian-registered companies. Direct ownership by non-EU/EEA individuals remains prohibited except for certain cases of inheritance (Romanian Parliament).
- Corporate Buyers: Both domestic and foreign companies registered in Romania may acquire land for business purposes, provided they comply with company law and sectoral regulations. Agricultural land purchases are subject to pre-emption rights and notification obligations under Law no. 17/2014, requiring offers to be made first to co-owners, tenants, neighbors, and the state before sale to others (Ministry of Agriculture and Rural Development).
Compliance involves rigorous due diligence, including land registry checks at the National Agency for Cadastre and Land Registration, confirmation of ownership history, and ensuring no encumbrances or disputes. Notarial authentication is mandatory to validate real estate transactions. In recent years, authorities have increased scrutiny to prevent money laundering and enforce anti-speculation measures, especially for agricultural land.
Key statistics indicate that foreign direct investment in real estate continues to rise, with over 50% of transactions in 2023 involving EU-based buyers through Romanian entities. The market outlook for 2025-2027 anticipates further liberalization and digitalization of registry procedures, but ongoing debate persists around limiting speculative land purchases to safeguard domestic agriculture and local interests (Ministry of Finance). Policymakers are expected to review the balance between openness and strategic protection, particularly as Romania aligns with broader EU real estate directives.
Building Permits and Zoning: Latest Procedures and Challenges
In 2025, Romania’s real estate sector continues to be shaped by evolving regulations governing building permits and zoning, which are critical for both domestic and foreign investors. The regulatory framework is primarily set by Law no. 50/1991, regarding the authorization of construction works, and the national urban planning legislation. Recent years have seen incremental procedural reforms aiming to streamline application processes, increase transparency, and enhance compliance with European Union standards.
The process for obtaining a building permit (autorizație de construire) involves several steps: securing a zoning certificate (certificat de urbanism), obtaining necessary approvals from relevant authorities (such as environmental, health, and fire safety), and submitting the permit application to the local City Hall or County Council. In 2024, digitalization efforts were intensified to reduce bureaucracy and delays. The introduction of online platforms in major cities for submission and tracking of permit requests has improved efficiency, although disparities remain between urban and rural administrations (Ministry of Development, Public Works and Administration).
Key challenges persist, particularly in the interpretation of zoning plans (PUZ and PUG), which can vary significantly across municipalities. Developers have reported inconsistencies in local urban plans and a lack of harmonization with national regulations, leading to delays and increased legal scrutiny. In 2023–2024, several high-profile court cases highlighted issues related to the retroactive annulment of urban zoning plans, creating uncertainty for ongoing projects (High Court of Cassation and Justice).
Statistically, the National Institute of Statistics reported a moderate increase in building permits issued in 2024, with approximately 44,000 permits granted for residential buildings, up 3% year-on-year. However, regional disparities remain pronounced, with Bucharest-Ilfov and Cluj leading while rural areas lag due to administrative capacity constraints and the slower adoption of digital tools.
Looking ahead, the Romanian government has committed to further digital transformation and simplification of procedures, as outlined in the National Recovery and Resilience Plan. Ongoing amendments to construction law are expected in 2025, aiming to clarify zoning plan validity, shorten approval timelines, and enhance predictability for investors. Nevertheless, developers should anticipate continued scrutiny over environmental and heritage site impacts, and stay vigilant regarding local plan changes that could affect project feasibility.
Taxation and Fiscal Obligations in Real Estate Transactions
Romania’s framework for taxation and fiscal obligations in real estate transactions is governed primarily by the Fiscal Code, with oversight from the National Agency for Fiscal Administration (ANAF). As of 2025, the real estate sector remains a significant contributor to state revenue, and recent years have seen enhanced regulations aimed at increasing transparency, combating tax evasion, and aligning with EU directives.
Key taxes applicable to real estate transactions in Romania include the transfer tax, value-added tax (VAT), local property tax, and income tax on capital gains. For individuals selling residential property, capital gains are taxed at 3% for amounts exceeding RON 450,000, while transactions below this threshold are exempt. Legal entities are subject to standard corporate income tax rates on gains from property sales. The VAT regime distinguishes between residential property (generally exempt or taxed at a reduced rate of 5% under certain conditions) and commercial real estate (typically subject to the standard 19% VAT rate), as detailed by the Ministry of Finance.
Property transfers are subject to notarial fees and local taxes, with the transfer tax for individuals calculated based on the declared value or the market reference value established by local authorities, whichever is higher. The buyer is also responsible for registering the property with the National Agency for Cadastre and Land Registration (ANCPI), a mandatory step to ensure legal title and compliance.
Non-residents are also liable for Romanian taxes on income from local real estate, and must appoint a tax representative if VAT-registered. Compliance is strictly monitored, with digital reporting and cross-border data exchange increasing since 2023, as per the National Agency for Fiscal Administration (ANAF). Penalties for late or incorrect filings were stiffened in 2024, including fines and potential interest charges.
Recent reforms have also introduced new reporting requirements for real estate developers and intermediaries to ensure anti-money laundering compliance, as enforced by the National Office for Prevention and Control of Money Laundering (ONPCSB). These measures reflect Romania’s commitment to EU standards and are expected to intensify through 2025–2027, targeting both domestic and cross-border transactions.
The outlook for 2025 and beyond suggests continued regulatory tightening, particularly with regard to digitalization of tax compliance and stricter scrutiny of real estate transactions involving foreign entities. Investors and individuals must remain vigilant in understanding evolving obligations, as authorities signal further updates to the fiscal code and enforcement practices in response to both domestic market trends and international best practices.
Compliance with Anti-Money Laundering and Transparency Requirements
Romania’s real estate sector operates within a robust framework designed to ensure compliance with anti-money laundering (AML) and transparency requirements. In recent years, the government has significantly intensified oversight, aligning national legislation with European Union directives, particularly the EU’s Fifth and Sixth Anti-Money Laundering Directives. As of 2025, the cornerstone of Romania’s AML regime is Law no. 129/2019, which sets forth obligations for entities involved in real estate transactions—including real estate agents, notaries, and developers—to conduct customer due diligence, report suspicious activity, and maintain detailed records of transactions and beneficial ownership.
The National Office for Prevention and Control of Money Laundering (Oficiul Național de Prevenire și Combatere a Spălării Banilor) serves as the primary regulatory authority. The agency conducts regular audits, issues compliance guidance, and enforces penalties for non-compliance. In 2024, ONPCSB reported an increase in the number of suspicious transaction reports originating from real estate professionals, reflecting heightened vigilance and improved training within the sector. Penalties for non-compliance can include substantial fines and, in severe cases, suspension of business activity.
A key development is the mandatory disclosure of ultimate beneficial ownership for legal entities involved in property transactions, as stipulated by Law no. 129/2019 and updated through amendments in 2023. Companies acquiring or selling real estate assets must register their beneficial owners with the national Trade Register, making this information accessible to authorities and, under certain conditions, the public. This measure aims to prevent the use of complex structures for concealing illicit funds and to ensure traceability of capital flows in the property market (National Trade Register Office).
Notaries play a critical gatekeeping role; under Romanian law, they are obliged to verify the source of funds in real estate transactions and to halt any deal they reasonably suspect involves money laundering or terrorist financing (National Union of Notaries Public of Romania). Additionally, real estate agents are required to register with ONPCSB and adhere to internal AML policies, including staff training and risk assessments.
Looking ahead, the sector is expected to see further digitalization of compliance processes, with electronic submission of AML reports and enhanced data-sharing among authorities projected for 2025–2027. Ongoing legislative updates are anticipated as the EU continues to refine its AML framework, compelling Romanian stakeholders to remain vigilant and adaptable.
Notary and Registry Processes: Step-by-Step Guide
Navigating Romania’s real estate regulations in 2025 requires a thorough understanding of the notary and registry processes, which ensure legal compliance and the validity of property transactions. These processes are critical safeguards in the Romanian property market, governed by the Civil Code and supervised by both notarial authorities and the National Agency for Cadastre and Land Registration (Agenția Națională de Cadastru și Publicitate Imobiliară).
- Preliminary Verification: Before any transaction, buyers typically request an extract from the Land Register (Extras de Carte Funciară) to confirm property ownership, absence of encumbrances, pending litigation, or mortgages. This document is issued by the National Agency for Cadastre and Land Registration and is a prerequisite for moving forward.
- Drafting the Sale-Purchase Agreement: The contract must be authenticated by a public notary, who verifies the identities, consent, and legal capacity of the parties, as well as the legal status of the property. Notaries in Romania operate under the oversight of the National Union of Notaries Public of Romania and must comply with anti-money laundering checks, as stipulated by Law no. 129/2019 and subsequent regulations.
- Payment of Taxes and Fees: The parties are required to pay relevant taxes (such as the property transfer tax, typically 3% for individuals selling properties held less than three years) and notarial fees, which are strictly regulated by the National Union of Notaries Public of Romania. The payment of these is necessary before the contract is finalized.
- Signing and Authenticating: At the notary’s office, both parties sign the agreement in the notary’s presence. The notary then authenticates the document, making it legally binding and eligible for registration.
- Registration in the Land Book: The notary submits the authenticated contract and all supporting documents to the National Agency for Cadastre and Land Registration for the transfer of ownership to be officially recorded. Registration is mandatory for the transfer to have legal effect against third parties.
The Romanian government continues to streamline these procedures through digitalization initiatives, aiming to reduce processing times and increase transparency in 2025 and beyond. The steady rise in registered transactions—over 700,000 real estate operations in 2023—signals robust market activity and underlines the importance of rigorous compliance with notary and registry procedures (National Agency for Cadastre and Land Registration). Ongoing legislative updates and digital transformation will likely enhance efficiency and oversight in the coming years.
Dispute Resolution: Common Issues and Legal Recourses
Dispute resolution in Romanian real estate is primarily governed by the Civil Code and the Civil Procedure Code, supplemented by sector-specific legislation and administrative regulations. Common disputes in the sector include property title defects, boundary disagreements, construction defects, issues with urban planning permits, and landlord-tenant conflicts. Recent years—especially entering 2025—have seen a sustained caseload in both civil courts and administrative tribunals, stemming from the dynamic property market and evolving regulatory requirements.
The Romanian legal system provides several avenues for resolving real estate disputes:
- Court Litigation: Most real estate disputes are adjudicated before the civil courts, with the Romanian Courts of Law having jurisdiction over property and contractual matters. The proceedings typically begin at the first-instance courts, with appeals available up to the High Court of Cassation and Justice. In 2023, over 12,000 property-related cases were registered, reflecting the sector’s complexity (Romanian Courts of Law).
- Arbitration: Although less common than litigation, arbitration is available for parties who have agreed to it, particularly in commercial real estate contracts. The Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania offers specialized panels for real estate cases, which can expedite resolution and ensure confidentiality.
- Mediation: Following Law no. 192/2006, mediation is encouraged but not mandatory. It is increasingly used in landlord-tenant and neighborhood disputes, as promoted by the Ministry of Justice. Successful mediation can significantly reduce time and costs for parties.
- Administrative Appeals: Disputes regarding urban planning, zoning, and building permits are often addressed through administrative appeals before local authorities or, if necessary, administrative courts (National Agency for Cadastre and Real Estate Publicity).
Legal reforms through 2024 and into 2025 have aimed to streamline procedures and increase transparency, particularly in land registration and digitalization of records (National Agency for Cadastre and Real Estate Publicity). However, delays in case resolution, particularly in overburdened urban courts, remain a challenge. Looking ahead, there is a policy focus on continuing digital transformation and expanding alternative dispute resolution mechanisms, which could improve efficiency and investor confidence in the Romanian real estate sector.
Recent Case Studies and Official Statistics from Romanian Authorities
Recent years have seen notable developments in real estate regulations and enforcement in Romania, reflecting the country’s efforts to align with European standards and address domestic market challenges. The regulatory framework is primarily governed by the Civil Code, Law no. 10/1995 on quality in construction, and Law no. 50/1991 regarding the authorization of construction works, with oversight from entities such as the National Agency for Cadastre and Land Registration and the National Authority for Consumer Protection.
- Recent Case Studies: In 2024, the Romanian Competition Council investigated several major real estate developers for alleged anti-competitive practices in the residential sector. The Council imposed fines and established compliance monitoring, highlighting the importance of transparent transactions and fair competition in the real estate market.
- In 2023, Bucharest’s City Hall launched an audit of urban planning certificates and construction permits, resulting in the suspension of several permits due to irregularities. These actions were based on oversight by the Ministry of Development, Public Works and Administration, emphasizing strict adherence to zoning and quality legislation.
Official Statistics: According to the National Institute of Statistics, 2023 recorded approximately 75,000 new residential units authorized nationwide, a 6% increase from 2022. However, the growth rate is expected to moderate in 2025 as authorities tighten enforcement of construction quality standards and energy efficiency regulations. The National Agency for Cadastre and Land Registration reported over 1 million real estate transactions registered in 2023, with Bucharest and Cluj remaining the most active markets.
Outlook and Compliance: In 2025 and beyond, increased digitalization of the land registry system and stricter compliance checks are anticipated. The government is advancing the e-Cadastre project to reduce bureaucracy and improve transparency (National Agency for Cadastre and Land Registration). Additionally, the National Authority for Consumer Protection has announced enhanced oversight of developer-customer contracts, aiming to curb unfair terms and protect buyers.
These efforts signal a more regulated and transparent real estate landscape in Romania, potentially tempering speculative activity while fostering sustainable and compliant market growth through 2025 and the following years.
Future Outlook: Anticipated Regulatory Trends and Policy Proposals (2025–2030)
Romania’s real estate sector is poised for significant regulatory evolution between 2025 and 2030, as the government aligns property laws with European Union directives and responds to internal market dynamics. Several anticipated trends and policy proposals are set to reshape the regulatory landscape.
- Digitalization of Land Registration and Transactions: The National Agency for Cadastre and Land Registration is expanding digital services to streamline property registration and reduce transaction times. In 2024, pilot projects for online land book operations were launched, and further digitization is planned through 2030 to enhance transparency and minimize fraud National Agency for Cadastre and Land Registration.
- Stricter Anti-Money Laundering (AML) Controls: In line with EU-wide efforts, Romanian authorities are intensifying scrutiny over real estate transactions. Legislative amendments in 2023 imposed enhanced due diligence on property agents and notaries. Additional tightening is expected, especially as EU AML regulations evolve, affecting reporting obligations and customer verification National Office for Prevention and Control of Money Laundering.
- Sustainability and Energy Efficiency Mandates: The Ministry of Environment and the Ministry of Development have signaled upcoming regulations requiring higher energy performance standards for new builds and retrofits. By 2027, nearly zero-energy building (nZEB) criteria will be enforced for most new construction, in accordance with the EU Energy Performance of Buildings Directive Ministry of Development, Public Works and Administration.
- Foreign Ownership and Investment Oversight: Amendments to the Foreign Direct Investment (FDI) screening regime are under discussion, with proposals to extend review powers for strategic real estate acquisitions, particularly in sensitive locations or sectors. This could impact cross-border investment flows and require more rigorous disclosures Government of Romania.
- Urban Planning and Zoning Reform: The government aims to modernize urban planning laws to address rapid urbanization and housing shortages. Draft reforms target simplification of permitting procedures, greater local authority, and incentives for affordable housing projects. Public consultation and legislative debate are expected throughout 2025–2026 Ministry of Development, Public Works and Administration.
Overall, Romania’s real estate regulatory environment is on a trajectory toward greater digitalization, transparency, and sustainability, with increased compliance demands for market participants. Effective implementation will depend on interagency coordination and stakeholder engagement, with the next five years pivotal for setting new market standards.
Sources & References
- National Authority for Consumer Protection
- National Office for Prevention and Control of Money Laundering
- National Agency for Cadastre and Real Estate Publicity
- Constitutional Court of Romania
- Romanian Parliament
- Ministry of Finance
- Law no. 50/1991
- National Agency for Fiscal Administration (ANAF)
- National Trade Register Office
- National Union of Notaries Public of Romania
- Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania
