An individual pays 3% of the transaction value for up to three years of ownership, and 1% after that. The notary calculates and collects it on signing day.
According to the Israel Tax Authority, a sale of real estate abroad is reported on Form 1399 within 30 days, and the tax on the gain is paid at the same time.
An Israeli resident usually pays 25% on the real gain, with a credit for the Romanian tax under the tax treaty.
Since 25.2.2026, under Emergency Ordinance 7/2026, the buyer also presents a certificate of no local debts. A contract without the certificates is void.
The sale contract, SWIFT confirmations, mortgage documents, Romanian tax receipts, and the returns you filed in Israel.
Bringing sale proceeds back to Israel: the short answer
Money from selling a property in Romania comes back to Israel by bank transfer, after the Romanian notary has collected the sale tax, 3% or 1% of the transaction value. What decides whether the transfer goes through smoothly is a document file: the original purchase contract, proof of the payments made back then, the sale contract, a certificate of the tax paid in Romania and the bank documents. In Israel, the sale is reported on Form 1399 within 30 days and tax is paid on the gain, less a credit for the Romanian tax.
When investors ask me about exiting a property, they usually ask about the price. I ask them to think about the money's route as well. The file for bringing the money back starts on the day you buy, not on the day you sell.
What to keep from the day you buy
The bank in Israel will ask where the money came from. The answer is "from selling a property", and the next question will be "and how did you buy it?". Keep, from day one:
- The notarial sale contract and the preliminary contract, if there was one.
- Transfer confirmations (SWIFT MT103) for every payment you made on the purchase.
- Mortgage documents, if there was one, and confirmation that it was repaid.
- Receipts for taxes paid in Romania: annual property tax, rental income tax if you let the property.
- The returns you filed in Israel on the property and on income from it.
On the way in, how the money got to Romania in the first place, we wrote in the guide to transferring money to Romania.
The Romanian side: what happens on sale day
The sale contract is signed before a Romanian notary. Three things matter for bringing the money back:
- The sale tax is collected on the spot. Under Article 111 of the Romanian Tax Code (Law 227/2015), an individual pays 3% of the transaction value if they held the property for up to three years, and 1% after that. The notary calculates and collects the tax on the day of signing. Details in the article on tax when selling property in Romania.
- A certificate of no local debts. Under Article 159 of the Fiscal Procedure Code, the seller presents a tax certificate (certificat de atestare fiscală) from the local authority, or the notary checks the position electronically. According to Avocatnet, since 25 February 2026, under Emergency Ordinance 7/2026, the requirement also applies to the buyer, and a contract without the certificates is void.
- Payment by bank transfer. Cash payments between individuals are capped at 50,000 lei per transaction under Law 70/2015, and for property-sized sums it is a transfer anyway. A contract that states exactly which account, in your name, the price is paid into makes every later stage easier.
Ask the notary for a copy of the contract and the certificate of the tax collected. These are the two documents the bank in Israel and the Israel Tax Authority will ask for first.
Where the money goes: a Romanian or an Israeli account
There are two options:
| Route | Advantage | Disadvantage |
|---|---|---|
| The buyer pays into your account in Romania, and you transfer to Israel | Suits you when there are payments to settle in Romania: mortgage, bills, tax | Two transfers, and checks at both banks |
| The buyer pays directly into your account in Israel | One transfer | The Israeli bank receives a large sum from a foreign buyer, and will ask for the whole file |
Israel is not part of the Single Euro Payments Area (SEPA), so a transfer to Israel is an international transfer, with fees on both sides. In Romania, banks and notaries are reporting entities under Law 129/2019 on preventing money laundering, so questions may be asked on that side too.
The Israeli side: the bank
Banks in Israel are required, under the Prohibition on Money Laundering Law and the order that applies to banking corporations, to know their customer and to examine unusual activity. A large sum arriving from abroad in one go is exactly the kind of activity that gets examined.
The file for bringing the money back starts on the day you buy, not on the day you sell.
What to prepare for the bank:
- The sale contract and the notary's certificate of the tax.
- The original purchase contract and proof of the transfers made back then.
- If the money passed through a Romanian account, the statements showing the proceeds coming in.
- A short letter explaining the transaction: what was sold, when and to whom.
A tip that works: contact your banker before the transfer goes out, send the file in advance and ask whether anything is missing. A transfer the bank was expecting goes through faster than one that surprised it.
The Israeli side: the Tax Authority
According to the Israel Tax Authority's service page (in Hebrew), a sale of real estate outside Israel requires a notice under section 91 of the Income Tax Ordinance:
- Form 1399 is filed within 30 days of the sale date, a separate form for each property.
- The capital gains tax is paid together with the filing.
- The form is also an appendix to the annual return (1301) for that year.
An Israeli resident usually pays 25% on the real gain, and receives a credit for the tax paid in Romania, under the tax treaty. How this works in practice, in the guide to the tax treaty. For a property bought in euros there are special rules for calculating the gain, so the calculation itself is worth doing with a tax adviser before the sale, not after it.
Converting to shekels: one more decision
When the euros arrive, you can convert them immediately or keep them in a foreign currency account. There is no single right answer here, but there is a rule: compare the rate you are offered with the Bank of Israel representative rate on the same day. On managing currency risk, see the article on paying in euros and earning in shekels.
The order of steps, from the decision to the money in your account
| Stage | What you do | When |
|---|---|---|
| Before the sale | Calculate the tax in both countries with an adviser, collect the purchase file | Before you advertise |
| Signing | Notary, local tax certificates, collection of the sale tax | Signing day |
| The proceeds | Transfer to the account stated in the contract | Per the contract |
| The bank in Israel | Send the file in advance, receive the transfer | Before the transfer |
| The Tax Authority | Form 1399 and payment of the tax | Within 30 days of the sale |
| The annual return | Attach the form to return 1301 | The following year |
Frequently asked questions
How much tax do you pay in Romania when selling a property?
An individual pays 3% of the transaction value if they held the property for up to three years, and 1% after three years, under Article 111 of the Tax Code. The notary calculates and collects the tax on the day of signing.
Do you need to report the sale of a property in Romania in Israel?
Yes. According to the Israel Tax Authority, a sale of real estate outside Israel is reported on Form 1399 within 30 days of the sale, and the tax on the gain is paid at the same time. The form is also attached to the annual return. You receive a credit for the Romanian tax under the tax treaty.
Why might the bank in Israel delay the transfer?
Because the bank is required to check the source of funds for unusual activity, and a large sum from abroad is just that. Anyone who arrives with the sale contract, the purchase contract, the transfer confirmations and the tax certificate, and sends them in advance, shortens the check.
Can you sell a property in Romania without flying there?
Yes, through a notarial power of attorney with an apostille and a certified translation into Romanian. The power of attorney must expressly include the authority to sell, to sign and to receive the proceeds into your account.
What if there is still a mortgage on the property?
Then part of the proceeds goes first to the Romanian bank to repay the loan and remove the charge. Ask the bank for a redemption statement before signing, and make sure the contract sets out how the payment is split.
The bottom line
Bringing the money back from a sale in Romania is not a problem, if the file is ready. The sale tax is collected at the notary, the bank in Israel needs to see the whole chain, and the Tax Authority expects Form 1399 within 30 days. Those who keep the documents from day one get out without delays.
If you are planning a purchase in Romania and already thinking about the exit, or planning a sale, book a 30-minute call with me. We will build the document list and the order of steps together, and prepare the questions for your tax adviser.
Moti Azulay, Compass Group Romania
Sources and data: Israel Tax Authority, notice of sale of an asset (Form 1399) (in Hebrew) · Romanian legislation portal (Law 227/2015, Article 111; Law 70/2015; Law 129/2019) · Avocatnet, tax certificate for buyer and seller under Emergency Ordinance 7/2026 · Romanian tax authority (ANAF) · National Union of Public Notaries of Romania (UNNPR) · Bank of Israel · PwC Tax Summaries, Romania.
This article is for general information only and is not legal, tax or financial advice. The Israeli tax calculation on a property bought in foreign currency depends on your personal circumstances, and is best done with a tax adviser before the sale.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
