Over the past year the representative rate ranged between 3.8914 and 3.2715. The same €100,000 payment cost between 389,140 and 327,150 shekels.
Income in shekels, the price in euros, and taxes, fees and usually the mortgage in lei. Every link is a conversion point.
According to ECB reference rates, the euro rose from 5.0895 lei at the start of 2026 to 5.3528 on 7 October.
Staged conversion, a foreign currency deposit, a forward contract with the bank, and matching the loan currency. Every tool costs something, even a missed opportunity.
BNR Regulation 4/2005 allows transactions between a Romanian resident and a non-resident in lei or foreign currency. Most developer contracts are in euros.
Currency risk when buying in Romania: the short answer
Anyone who earns in shekels and buys a property priced in euros is exposed to the euro-shekel rate on every payment. Over the past year, according to the Bank of Israel's representative rate, the euro ranged between about 3.89 and about 3.27 shekels: a difference of about 62,000 shekels on every €100,000. You cannot guess the rate, but you can plan: know in advance when each payment goes out, convert gradually or lock in a rate with the bank, and choose a mortgage whose currency suits you.
When an investor tells me the villa "cost less than planned", sometimes it is not the price. It is the exchange rate. And sometimes it is the other way round. So I treat the rate as a line in the budget, not as luck.
The chain: shekel, euro, leu
A buyer from Israel can have up to three currencies in a single transaction:
- Shekel: your income and savings.
- Euro: the currency in which most property prices in Romania are published, and also the currency of most contracts with developers.
- Leu: Romania's official currency. Taxes, fees and the notary's fee are calculated in it, at the reference rate of the National Bank of Romania (BNR), and most mortgages for non-residents are also granted in it.
Every link in the chain is a conversion point, and every conversion is an exposure.
How far the rate moved: the data
| Rate | Date | Value |
|---|---|---|
| EUR/ILS, representative rate | 3.10.2025 | 3.8914 |
| EUR/ILS, representative rate | 29.5.2026 (low of the year) | 3.2715 |
| EUR/ILS, representative rate | 7.10.2026 | 3.4361 |
| EUR/RON, reference rate | 2.1.2026 | 5.0895 |
| EUR/RON, reference rate | 7.10.2026 | 5.3528 |
EUR/ILS data from the Bank of Israel. EUR/RON data from the European Central Bank (ECB), which publishes daily reference rates.
Now translate that into a single payment of €100,000: at the October 2025 rate it cost 389,140 shekels. At the end-of-May 2026 rate, 327,150 shekels. The same payment, under the same contract, with a difference of about 62,000 shekels, purely because of the day you converted.
And it works both ways. Anyone who converted the whole sum in advance in October 2025 "lost" on paper. Anyone who waited "gained". Neither of them knew it in advance.
Who bears the risk: the contract
In Romania, BNR Regulation 4/2005 on the foreign exchange regime allows transactions between a Romanian resident and a non-resident in lei or in foreign currency. In practice, a contract with a developer is usually denominated in euros, and then:
- The euro price is fixed. You bear the risk between the shekel and the euro.
- Taxes and fees are in lei. They are calculated at the rate on the day of payment, so they also move slightly.
- If the contract is in euros but payment is in lei, check in writing which rate applies and on which day. This should be written in the preliminary contract. What else must be in it, in the guide to the preliminary contract.
The advantage of a known payment schedule
When buying from a developer in Romania, since Law 207/2025, payments are staged by construction phase: up to 5% at reservation, up to 25% until the structure is complete, up to 20% until the building systems are complete, and the balance on handover. The money goes into a dedicated project account.
Why does this matter for the exchange rate? Because when you know in advance when each payment goes out and how much it is, you can build a conversion plan instead of betting on a single day.
The exchange rate is part of the price. Anyone who does not plan for it pays a price they did not see in the contract.
4 tools to reduce the exposure
These are tools, not a recommendation. What fits depends on you, your bank and the timetable.
- Staged conversion. You convert fixed portions over time, for example before each payment. You will not catch the best rate, but you will not catch the worst either.
- A foreign currency deposit. You convert when the rate looks reasonable to you, and hold euros in the account until the payment date. The downside: money already converted no longer benefits if the shekel strengthens.
- A forward contract with the bank. You lock in today a rate for a future date. It suits a large payment on a known date, such as handover. Check the cost and the collateral the bank requires.
- Matching the loan currency. A Romanian mortgage in lei swaps euro risk for leu risk, with a monthly repayment you will pay from income in shekels. A loan in Israel in shekels removes the currency gap in the repayment, but puts a charge on a property in Israel. We set out both options in the article on financing in Israel or in Romania and in the article on a mortgage in euros or lei.
And the fee you do not see
Beyond the direction of the rate, there is the spread the bank takes. Compare the rate you are offered with the Bank of Israel's representative rate and BNR's reference rate on the same day. The difference is the real cost of the conversion, and on sums of tens of thousands of euros it is worth more than the transfer fee itself. How to actually move the money, in the guide to transferring money to Romania.
The opposite scenario
Every hedging tool costs something, even if only a missed opportunity. If the shekel strengthens after you have locked in a rate, you will pay more than someone who did nothing. And that is fine: the aim of planning is not to beat the market, but to know in advance how much you will pay.
The exchange rate is part of the price. Anyone who does not plan for it pays a price they did not see in the contract.
I will mention it once: in our project in Balotești the price is in euros and includes VAT, tax and the notary's and lawyer's fees, so your chain is shortened to shekel and euro. The currency risk itself remains with you, as in any transaction in euros.
Frequently asked questions
In which currency do you pay for property in Romania?
Usually in euros, according to the contract. BNR Regulation 4/2005 allows transactions between a Romanian resident and a non-resident in lei or in foreign currency. Taxes, fees and the notary's fee are calculated in lei at BNR's reference rate.
How much can the exchange rate affect the cost?
Over the past year the EUR/ILS representative rate ranged between about 3.89 and about 3.27. On a payment of €100,000, that is a difference of about 62,000 shekels. In a transaction with several payments, the effect is spread according to the conversion dates.
Should I convert the whole sum in advance?
There is no single answer. Converting in advance fixes the cost, but gives up a possible strengthening of the shekel. Staged conversion spreads the risk. The decision depends on the payment schedule, your liquidity and your tolerance for fluctuations, and is best made with your bank or a financial adviser.
What is a forward contract?
A commitment to the bank to buy euros on a future date at a rate set today. It suits a large payment on a known date. Before signing, check the cost, the collateral the bank requires and what happens if the payment date moves.
If Romania adopts the euro, will the risk disappear?
The euro-leu risk will disappear, but the shekel-euro risk will remain as long as your income is in shekels. What is known about the timetable, in the article on Romania's move to the euro.
The bottom line
The exchange rate is not a surprise, it is a known variable. Those who know when each payment goes out, compare rates and choose one or two tools in advance turn a fluctuation into a line in the budget.
If you are building a payment schedule for a property in Romania, book a 30-minute call with me. We will sketch out the payment dates together, identify the conversion points, and prepare the questions for your bank.
Moti Azulay, Compass Group Romania
Sources and data: Bank of Israel, representative exchange rates · European Central Bank, daily reference rates (ECB Data Portal) · National Bank of Romania (BNR) · BNR Regulation 4/2005 on the foreign exchange regime, Romanian legislation portal · Law 207/2025, Romanian legislation portal · Capital.ro, the Nordis law comes into force. The calculations in the article are for illustration.
This article is for general information only and is not legal, tax or financial advice, nor a recommendation to carry out any foreign currency transaction. Exchange rates change daily, and past data is no indication of the future.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
