Romania's property legislation has undergone significant revision in recent months. Foreign nationals and non-EU corporate entities that currently hold – or intend to acquire – Romanian real estate face new obligations that came into force in early 2025. Failure to act promptly risks title complications, blocked conveyancing transactions, and potential financial penalties under Romanian civil and administrative law.
Romania's updated real estate legislation tightens the conditions under which non-EU foreign persons and foreign-controlled companies may acquire, transfer, or register property rights. The changes affect land register procedures, notarial deed requirements, and mandatory due diligence disclosures during property transfer transactions. Affected parties must complete a compliance review and. There, required. Submit supplementary documentation to the relevant land registry authority within the deadlines set by the new rules. in most cases within 90 days of the effective date.
This alert sets out what changed, which property owners and investors are directly affected, and the concrete steps that international clients should take now.
What changed and when it took effect
Romania's civil legislation governing immovable property was amended to introduce stricter controls over acquisitions by non-EU nationals and entities. The core changes took effect on 1 January 2025.
Three areas were materially revised. First, the Cartea Funciara (land register) inscription process now requires additional beneficial ownership declarations for any property transfer involving a foreign-controlled legal entity. Second, the act notarial (notarial deed) used to formalise property transfers must now include an extended due diligence annex. This annex documents the source of funds, the ultimate beneficial owner, and any cross-border corporate structure through which the acquiring party holds its interest. Third, agricultural land acquisition rules – which already imposed sector-specific restrictions on non-EU buyers – have been extended to apply to certain categories of mixed-use and peri-urban land.
These amendments operate alongside Romania's existing obligations under EU anti-money laundering legislation and its land reform legislation, which have historically created a layered compliance environment for foreign investors. The new rules add a further disclosure tier that interacts directly with the title deed validation process.
For transactions that were notarised before 1 January 2025 but not yet fully registered in the land register, a transitional window applies. Those transactions must be completed – including full land register inscription – within 90 days of the effective date. Transactions that miss this window may require re-execution of the notarial deed under the new rules, at additional cost and with potential gap periods in title protection.
Who is affected and what thresholds apply
The changes affect three principal categories of property owner and investor in Romania.
Non-EU individual buyers. Natural persons who are nationals of countries outside the European Union and who hold. or are in the process of acquiring. freehold or long-term leasehold interests in Romanian real estate must submit a beneficial ownership declaration at the point of any subsequent transfer or registration event. This applies regardless of whether the individual is resident in Romania.
Foreign-controlled corporate entities. Romanian companies with a majority non-EU shareholding, and foreign legal entities registered outside the EU, are subject to the enhanced notarial deed requirements on every property transfer. This threshold is set at majority control – meaning that a non-EU parent holding more than 50% of a Romanian subsidiary triggers the full disclosure regime.
Agricultural and mixed-use land holders. Any entity. regardless of nationality. that holds agricultural or newly reclassified mixed-use land and intends to transfer. Mortgage. Alternatively, subdivide that land must now obtain a pre-clearance certificate from the relevant local agricultural authority before the notary can proceed. This pre-clearance step adds a procedural layer that was not previously required for corporate landholders.
The tax implications of these changes interact closely with Romanian tax legislation on capital gains and real estate transfer duties. International clients should assess both the registration compliance position and any recalculated tax exposure arising from revised transaction structures. Our tax law practice in Romania can assist with that parallel analysis.
To discuss how these changes affect your specific property holdings or pending transactions in Romania, contact us at info@ferrazwhitmore.com.
Immediate action items for international property owners
The following steps are relevant for any foreign individual or entity that currently holds Romanian real estate or has a transaction in progress.
- Audit existing title deeds. Review all Romanian title deed documents to confirm whether each property is fully registered in the land register under the pre-2025 rules. Any incomplete inscription must be finalised within the 90-day transitional window.
- Prepare beneficial ownership documentation. Compile group structure charts, shareholder registers, and source-of-funds records for every Romanian property-holding entity. These will be required for the extended notarial deed annex on any future transfer.
- Check land classification. For any agricultural or mixed-use land holding, obtain a current classification certificate from the local cadastral office. Identify whether the mixed-use extension applies and, if so, initiate the pre-clearance process without delay.
- Review pending transactions. Any sale, mortgage, or restructuring that was under negotiation before 1 January 2025 should be assessed against the new conveyancing requirements. Transactions structured under the old rules may need amendments before the notary will proceed.
- Engage a lawyer in Romania with cross-border experience. The interaction between Romania's updated property rules and the laws of the investor's home jurisdiction – particularly on corporate structures and tax residency – requires coordinated advice. A law firm in Romania familiar with both Romanian civil law and international transaction practice is best placed to manage that interface.
For a tailored strategy on property compliance and conveyancing under Romania's revised rules, reach out to our team at info@ferrazwhitmore.com.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our real estate practice supports foreign investors, corporate landholders, and private clients navigating property acquisition, title registration, and regulatory compliance in Romania and across the EU. We combine Portuguese civil law expertise – which shares foundational principles with Romania's civil law system – with English common law tradition, giving us a dual-perspective approach to cross-border property transactions. Our attorneys have advised on property transfer and land register matters across both civil law and common law systems. Additionally. Our Lisbon base provides direct access to EU regulatory developments that affect Romanian real estate rules. For comprehensive legal support on your Romanian property portfolio, contact us at info@ferrazwhitmore.com.
For further context on how regulatory changes in EU member states interact across borders, see our related alert on real estate regulation changes in Portugal. For an overview of Romanian property acquisition procedures and title deed requirements, visit our real estate law service page for Romania.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.