Can I get a Romanian mortgage as a non-resident, and on what terms?

How to get a mortgage in Romania as a non-resident in 2026, how much equity you need, and how to plan the monthly payment and the management of the property.

The Romania of 2026 is no longer an "emerging market". It is a mature European economy offering foreign investors opportunities that are hard to find in Western Europe. The country became a full member of the Schengen Area in January 2025 (land borders included), which eliminated border bottlenecks, cut transport times and sent tourism soaring. At the same time, new motorways are opening at a record pace: roughly 1,400 km by the end of 2025, with plans to reach 2,000 km by 2028. And demand for real estate, especially in Bucharest, keeps rising.

Economic growth in 2025 was modest, about 0.7% according to the European Commission's forecast, mainly because of fiscal consolidation measures aimed at narrowing the budget deficit. Yet it is precisely this slowdown that gives you time to examine the market calmly and plan your financing properly. The Commission forecasts growth of 1.1% in 2026 and above 2% in 2027.

To take advantage of this opportunity wisely, however, you need to understand how the financing works. How exactly does a non-resident get a mortgage in Romania? What are the conditions? What does it cost? And above all – how do you plan the monthly payment?

In this guide we lay it all out, step by step, with verified data and practical examples.

What does money cost? Romania's interest-rate environment

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Let's start with the basics. The National Bank of Romania (BNR) policy rate stands at 6.50%, unchanged since August 2024. Although inflation is still high (9.7% in 2025, according to the National Institute of Statistics), it is gradually easing. Leading analysts at ING and Erste Group expect a rate-cutting cycle to begin around May 2026, with a cumulative reduction of about one percentage point by year-end.

What does this mean for an investor? Buying now lets you plan the monthly payment around current rates and consider refinancing on better terms if rates fall heading into 2027.

Financing terms for non-residents

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Mortgage rates in Romania are based on the IRCC, an interbank reference index that the central bank publishes every quarter. In Q2 2026, the IRCC stands at 5.58%. Banks typically add a margin of 2.5%–3.0%, so the all-in rate on a variable-rate mortgage is around 8%–8.5%. We walk through the whole process, from decision to keys, in our Romanian mortgage guide.

Worth noting: more than 98% of new mortgages in Romania today are issued with a fixed rate for an initial period, at rates of 5.45%–5.70%.

Loan-to-value (LTV) ratios for non-residents:

• Residential property: 50%–60% of the property's value.
• Commercial/office property: 60%–70%, depending on tenant quality and the asset's profile.

The European passport – your ticket in

If you hold an EU passport, you are in a much stronger position. Romanian banks treat EU citizens as lower-risk borrowers, which translates into better terms: rates 0.5%–1% lower than for a "pure" non-resident, faster approval, and access to more flexible loan products.

What if you don't have an EU passport? We didn't say it's impossible – we said it takes more effort. An Israeli or American investor needs to show the bank a connection to Romania. The most common route: setting up a local company. This doesn't just solve the mortgage problem; it also creates an efficient tax structure (more on that shortly).

A practical example: Yossi, an investor from Tel Aviv, wanted to buy an apartment in Bucharest. Without an EU passport, in his case the bank required him to set up a local company – a Romanian SRL. In most cases, the bank is satisfied with a lien on the property. The process took about 3 weeks, and the setup cost was around €1,500. Once the company was established, he received approval in principle for the mortgage within two weeks.

What does the bank want to see? Documents and requirements

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Banks in Romania run a thorough underwriting process. They assess your repayment capacity and expect the monthly payment not to exceed 30%–40% of your disposable income. If you are worried about the effect on your credit at home, read whether a Romanian mortgage affects your credit at home.

For reference: the average net salary in Bucharest is about 6,978 lei (RON), roughly €1,372 (October 2025 data). The national average is lower, about 5,492 lei, roughly €1,080. The bank will benchmark your income against these figures.

Documents you will need to submit

Mandatory documents

1. Proof of income – translated and apostilled. A payslip is not enough; you need 12 months of bank statements showing consistency.
2. Valuation report – a report by a certified valuer on the property being purchased (at the buyer's expense).
3. Credit report – confirmation that you have no outstanding debts in your home country.

Supporting documents that improve your chances

1. Proof of liquidity – investment portfolio, savings, deposits.
2. Proof of tangible wealth – title documents for other properties you own (including outside Romania).
3. A signed property management contract – shows the bank that someone will be taking care of the property.
4. Proof of expected income – a letter of intent from a prospective tenant (especially relevant for commercial property).

Important tip: The more "supporting" documents you submit, the stronger your borrower profile and the better your terms. The bank wants to feel confident that you have solid financial backing.

How long does the process take?

Mortgage approval for a non-resident in Romania takes 4–8 weeks on average from the moment all documents are submitted. The breakdown: approval in principle within 5–10 business days, valuation 1–2 weeks, and final approval plus signing another 2–3 weeks. We recommend preparing your documents while you are still searching for a property, so you don't miss a good opportunity because of red tape.

Rental demand and management: what makes a property succeed

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The mortgage is only half the picture. The other half is rental demand and how the property is managed.

Example: a two-room apartment in Pipera, Bucharest

Item	Amount
Purchase price	€150,000
Financing (60%)	€90,000
Equity	€60,000
Monthly mortgage payment (fixed rate ~5.6%)	~€750–800

Short-term rental market data from AirROI, 2025, shows a wide gap between properties:

• Average property: occupancy of only about 42% over the year.
• Top 10% property with professional management: occupancy of about 83%.

What separates an average property from a successful one? Management. The data speaks for itself: top-decile properties reach occupancy of about 83%, while the average is just 42%. Professional management – dynamic pricing, interior design, guest service – is the difference between a property that stands empty much of the year and one that is in demand. We break down remote management in our article on who manages your property while you are away.

Where should you invest?

• Old Town – the historic centre: perfect for tourists. High demand and a higher ADR (average daily rate).
• Pipera – close to business hubs and the tech park: steady demand from park employees (relocating executives, developers, visitors), business travellers and long-stay guests.
• Floreasca / Aviatiei – an upscale area with growing demand and strong demand for correctly priced properties.

Tax traps: what you must know before you sign

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Romania's tax rules changed dramatically in 2025, with further changes in force since the start of 2026. Here are the three critical ones: The full picture of taxes on buying, renting and selling is in our Romanian property tax guide.

1. VAT rose to 21%

Since August 2025, Romania's standard VAT rate has risen from 19% to 21%. A reduced 9% rate (for homes of up to 120 sq m usable area and up to 600,000 lei, for buyers who signed a preliminary agreement before August 2025) applied only during a transitional period that ended on 30 September 2026. Today every new home is subject to the full 21% VAT.

2. Dividend tax – up to 16%

From January 2026, the dividend tax rate rose from 10% to 16%. This is significant for investors who hold property through a company and take profits out.

3. Micro-company tax – the trap you need to know about

This is the change that catches the most unprepared investors. Until the end of 2025, a company with turnover of up to €250,000 paid a reduced tax of 1% of turnover. From January 2026, the threshold dropped to just €100,000, and the rate remains 1% (the 3% rate was abolished).

Keep in mind that a micro-company must employ at least one employee at minimum wage and pay that employee's taxes. In addition, if 50% of a micro-company's revenue comes from rental income, it is automatically converted into a standard company – meaning it pays 16% tax on profit.

What does this mean in practice? If you hold several properties under one company and their combined turnover exceeds €100,000, you automatically move to standard corporate tax – 16% of profit. That's still not bad (because depreciation and financing costs can be deducted), but it requires planning ahead.

4. New taxation of short-term rentals (STR)

An important new rule in 2026: income from renting out apartments for periods of up to 30 days is now subject to a flat 30% expense deduction from gross income, with 10% tax on the remainder. In practice, that is an effective tax of about 7% of gross income. In addition, anyone whose rental income exceeds a certain threshold will also owe health insurance contributions (CASS).

The takeaway: Planning your holding structure – company, individual ownership, or splitting across several companies – must happen before you sign the mortgage, not after. Consult a Romanian tax expert who is familiar with the Romania–Israel double taxation treaty.

The "refinancing window" – the strategy you need to know

Here is the logic guiding experienced investors in Romania right now:

Step 1 – Buy now. Property prices are still accessible compared with Western Europe, and rental demand in Bucharest is steady.

Step 2 – Finance on current terms. Yes, rates are relatively high. But this is temporary – the market consensus is that rates will fall.

Step 3 – Refinance in 2027. If rates come down (forecast: 5.25%–5.50% by the end of 2026), you will be able to refinance your mortgage and reduce the monthly payment.

This isn't a promise – it's a way to plan your financing in advance.

The smart investor's three rules in Romania

1. Never compromise on management. The gap between 42% and 83% occupancy is the difference between an empty property and one in demand. A property without professional, dynamic management is a property that misses its potential. If you don't live in Romania, a professional management company isn't an expense – it's a necessity.
2. Tax-structure due diligence – before you sign. Given the changes to micro-company tax, dividend tax and STR taxation, your holding structure will directly affect your bottom line. A conversation with a tax expert before you buy can save tens of thousands of euros over time.
3. Timing – but not paralysis. Are rates high? Yes. But a mortgage can be refinanced, and the option to refinance on better terms in 2027 exists. Those who wait for "perfect conditions" usually miss the opportunity.

Common mistakes foreign investors make in Romania

Before we wrap up, here are a few mistakes we see again and again on the ground:

"I'll manage the property remotely myself." That's an illusion. Running a short-term rental requires 24/7 availability, guest check-ins, cleaning, maintenance, demand-based dynamic pricing and communication with booking platforms. Anyone who doesn't live in Romania and tries to do it alone usually ends up with 30%–40% occupancy and a lot of frustration. A professional management company charges 15%–25% of revenue, but it keeps occupancy high and gives you peace of mind.

"My friend said I don't need a company." Maybe once. But in 2026, with the new STR tax rules, it is important to examine whether holding the property as an individual or through a company is more worthwhile. The answer depends on the size of the investment, the income structure and plans for future expansion.

"I want an apartment right in the city centre, because that's the 'safest'." Not necessarily. Properties in central Bucharest cost more per square metre. Areas such as Pipera or Aviatiei often offer lower purchase prices and steady demand from business travellers.

"I'll wait for rates to drop and then get in." The problem with this approach: nobody knows exactly when rates will fall, and in the meantime the right property may be sold to someone else. You can buy when you find the right property and refinance when conditions improve.

Frequently asked questions

Can a non-resident get a mortgage in Romania?

Yes. For residential property, banks usually finance 50%–60% of the property value. Holders of an EU passport get better terms, and buyers without one are sometimes asked to show a link to Romania, such as a local company (SRL), although in most cases the bank is satisfied with a lien on the property.

What is the interest rate on a Romanian mortgage?

Variable rates are based on the IRCC index, at 5.58% in the second quarter of 2026, plus a bank margin of 2.5%–3.0%, so the total rate is around 8%–8.5%. More than 98% of new mortgages are issued at a fixed rate for an initial period, at 5.45%–5.70%.

Which documents does the bank require?

Proof of income, translated and apostilled, with 12 months of bank statements; a certified valuation of the property at the buyer's expense; and a credit report from your home country. The bank expects the monthly payment not to exceed 30%–40% of your disposable income, and supporting documents such as proof of liquidity improve your terms.

How long does a Romanian mortgage take?

On average 4–8 weeks from the moment all documents are submitted: approval in principle within 5–10 working days, valuation in 1–2 weeks, and final approval and signing in another 2–3 weeks. It is worth preparing the documents while you are still searching for the property.

Do I need to be in Romania to sign?

Signing before a Romanian notary cannot be done remotely. You can attend in person or give a power of attorney to a representative who signs on your behalf.

In summary

Romania in 2026 offers a rare combination: relatively light regulation of the short-term rental market, accelerating infrastructure growth, full Schengen membership, and steady rental demand in Bucharest.

A mortgage in Romania as a non-resident isn't simple – but it is entirely achievable, and for those who plan properly it is a powerful financing tool that lets you buy a property with less equity and a monthly payment known in advance.

This article is for general information purposes only and does not constitute tax, legal or financial advice. Before entering into any transaction, we recommend consulting local experts.

Compass Group Romania – guiding Israeli investors in Romanian real estate, from the first idea to the keys.