An Israeli buys an apartment or villa and registers the building in their own name. The restriction in Law 312/2005 concerns only registering land directly.
1% of revenue, only if revenue did not exceed €100,000 and the company has at least one employee. Otherwise 16% corporate tax.
From January 2026 dividends are taxed at 16%. Under the treaty with Israel the withholding is capped at 15%, and Israel taxes at 25% or 30% with a credit.
A company controlled by Israelis, with passive income and foreign tax of up to 15%, may be treated as a controlled foreign company and become taxable in Israel.
An Israeli resident holding a foreign company attaches form 150 to the annual return. The guidance was updated in Income Tax Circular 4/2026.
A Romanian company to buy property: the short answer
No. An Israeli can buy an apartment or villa in Romania and register the building in their own name, without a company. The restriction concerns only registering land directly in the name of a non-EU citizen, and for a villa it is usually solved with a Superficie right. A Romanian company (SRL) can also register land, but it adds bookkeeping, corporate tax, 16% dividend tax and a layer of reporting and taxation in Israel. It makes sense mainly for several properties or for land for development.
"You have to set up a company" is one of the sentences I hear most from investors who come to me after a conversation with someone else. Sometimes it is true. In most cases of someone buying one home, it is simply unnecessary, and it costs money every year.
Where "you need a company" comes from
The source is real: Law 312/2005 restricts the acquisition of land in Romania by non-EU citizens. An Israeli cannot register land directly in their own name. A Romanian company is a Romanian legal entity, so it can.
A ynet article from November 2025 (in Hebrew), in which attorney Ilan Leibovitch and I were both interviewed, described the two common solutions: setting up a local company, or having a company hold the land component in trust. What is not always said is that the building itself, the home you are buying, is registered in your name even without a company.
What you are allowed to do as individuals
| What you buy | Israeli individual | Romanian company (SRL) |
|---|---|---|
| Apartment or building | Registered in your name | Registered in the company's name |
| Land | Not directly. Usually a Superficie right | Registered in the company's name |
| Home mortgage | Mortgage for non-residents, depending on the bank | A loan to the company, on different terms |
| Tax on sale in Romania | 3% of the transaction value up to 3 years, 1% after | Corporate tax on the profit, then dividend tax |
| Running cost | None | Bookkeeping, reports, registered office |
A Superficie right gives full ownership of the building and an exclusive right to use the land beneath it, and it is transferable, inheritable and can be mortgaged. We explained it in depth in our article on land ownership.
What it costs to hold a Romanian company in 2026
As of October 2026, these are the main tax rules, according to PwC and Romanian professional sources:
- Micro regime: 1% of revenue. Provided revenue in the previous year did not exceed €100,000, and the company has at least one full-time employee (or a management contract paid at least the minimum wage), according to a summary by Keez. From the quarter in which revenue exceeds the threshold, the company moves to profit tax.
- Standard corporate tax: 16% of profit.
- Dividend tax: 16% from January 2026, compared with 10% before. According to PwC, under the treaty with Israel the withholding rate on dividends is capped at 15%.
And beyond tax: monthly bookkeeping, annual financial statements, a registered office, and reporting of the beneficial owners. Note the employee condition: a company that holds one home and has no employee does not qualify for the micro regime.
Selling: where the difference is felt
As individuals, a sale is taxed in Romania as a percentage of the transaction value: 3% for up to three years of ownership, 1% after that. Details in our guide to tax on sale.
In a company, the profit is taxed at company level, and if you want to bring the money home, there is another layer of dividend tax. And under the micro regime, the sale proceeds themselves count as revenue, so selling one villa can push the company above the €100,000 threshold, into standard profit tax.
The Israeli side: three questions most investors do not ask
1. Controlled foreign company (section 75B). A foreign company is a "controlled foreign company" when cumulative conditions are met, including: Israeli residents hold more than 50% of the means of control, most of its income or profits are passive (and rent is a clear example), and the foreign tax on the passive income does not exceed 15%. In that case undistributed profits may be taxed in Israel as if they had been distributed as a dividend. A micro company paying 1% of revenue is exactly the case that needs checking.
A company set up to "save tax" in Romania may create tax, reports and questions in Israel.
2. Where the company is managed. Under the definition of "Israeli resident" in the Income Tax Ordinance, a body of persons whose control and management are exercised from Israel is treated as an Israeli resident. A Romanian company whose decisions are all made in a living room in Tel Aviv may be treated as an Israeli company for tax purposes.
3. Reporting. An Israeli resident who holds a foreign company attaches form 150, the declaration of holding in a non-resident body of persons, to the annual return. The Israel Tax Authority published updated guidance on completing it in Income Tax Circular 4/2026. And a dividend you receive is taxed in Israel at 25%, or 30% for a substantial shareholder, with a credit for the tax paid in Romania.
A company set up to "save tax" in Romania may create tax, reports and questions in Israel. For the Israeli layer in general, see our tax guide for Israeli buyers.
Living in the company's house
One more point worth checking in advance: if the company is the owner and the family lives in the house, that is private use of a company asset. Both tax systems have something to say about it. Ask your tax adviser what it means before you choose this structure for a home you will live in.
When an SRL does make sense
- Several properties. With three properties or more, a single managed structure can be simpler than several private registrations.
- Land for development. When the land is the main thing, a Romanian company can register it in its own name. Agricultural land outside the built-up area is subject to additional rules.
- A genuine business activity. A company with employees, services and income that is not purely passive.
And who it suits less: someone buying one home to live in or hold for the long term. There, private ownership, with Superficie for the land, is simpler and cheaper. The full cost comparison is in our article on the costs of owning property.
Frequently asked questions
Does an Israeli have to set up a company to buy an apartment in Romania?
No. An Israeli can buy an apartment or a building and register it in their own name in the land register, without a company and without residency. The restriction in Law 312/2005 concerns registering land directly in the name of a non-EU citizen.
And what about the land under a villa?
It is usually registered as a Superficie right: ownership of the building and an exclusive right to use the land for the life of the building, registered in your name. A Romanian company is another possible route, with running costs and taxation at company level.
How much tax does a Romanian company pay in 2026?
Under the micro regime, 1% of revenue, provided revenue did not exceed €100,000 and the company has at least one employee. Otherwise, 16% corporate tax on profit. Dividends are taxed at 16%, and under the treaty with Israel the withholding is capped at 15%.
Will a Romanian company save me tax in Israel?
Not necessarily. A company with passive income, controlled by Israeli residents and paying low tax, may be treated as a controlled foreign company under section 75B, and a company managed from Israel may be treated as an Israeli resident. Check the structure with a cross-border tax adviser before buying.
When is it worth considering an SRL?
When buying several properties, when the main asset is land for development, or when there is a genuine business activity. For one home, private ownership with Superficie for the land is usually the simpler and cheaper route.
The bottom line
A Romanian company is a tool, not a requirement. For one home it usually adds costs, reporting and tax in both countries. For several properties or land for development, it can be the right structure.
If someone told you that "you need a company", book a 30-minute call with me. We will go through both routes together and prepare the questions for your tax adviser.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal: Law 312/2005, Civil Code and Fiscal Code · PwC Tax Summaries: Romania · PwC: withholding taxes in Romania and treaty rates · Keez: the micro regime in 2026 · ynet: "For the price of an apartment in Bucharest, you can't even buy a key in Israel" (14.11.2025, in Hebrew) · Israel Tax Authority: form 150 (in Hebrew) · Israel Tax Authority · Land registration authority (ANCPI).
This article is for general information only and is not legal, tax or financial advice. The information is correct as of October 2026, and tax law in Romania and Israel changes frequently. Choosing a holding structure requires advice from a tax adviser who knows the law of both countries, before the purchase.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
