A gift between parents and children, spouses and relatives up to the third degree is exempt from Romanian transfer tax, under Article 111 of the Fiscal Code.
Someone who received a property as a gift and sells it within three years of the gift pays 3% of the transaction value, even if the parents held it for a decade.
A gift to a relative who is an Israeli resident is exempt from capital gains tax, and the recipient takes over the donor's acquisition date and cost. A non-resident child does not get the exemption.
Registering the recipients in the ANCPI land register costs 0.15% of the value for an individual, plus the notary's fee on a sliding scale.
Selling or mortgaging a minor's property requires prior approval from the guardianship court, given only when the act clearly benefits the child.
Gifting a property in Romania: the short answer
In Romania, a property is gifted by a deed of gift (contract de donație) signed before a notary; otherwise it is void. A gift between parents and children, between spouses and between relatives up to the third degree is exempt from Romanian transfer tax, and you pay only the notary and registration in the land register. In Israel, a gift to a relative who is an Israeli resident is exempt from capital gains tax. The point many people miss: on a later sale, the count of years of ownership in Romania starts from the date of the gift.
Parents ask me: "Why wait for an inheritance, if we can give it to them now?" A good question. But a gift is very hard to undo, so it is worth understanding what it gives, what it costs and what you lose along the way.
Gift or inheritance: the practical difference
We wrote a separate guide on inheriting a property in Romania. Here I compare the two routes, because the decision is usually between them.
| Topic | Lifetime gift | Inheritance |
|---|---|---|
| Procedure in Romania | Deed of gift before a notary | Succession procedure before a notary and certificate of inheritance |
| Romanian transfer tax, relatives up to 3rd degree | Exempt | Exempt if the procedure is completed within two years, otherwise 1% |
| Romanian transfer tax, non-relatives | 3% or 1%, as on a sale | Same two-year rule |
| Who decides about the property after the transfer | The children, from the signing date | The parents, until death |
| Tax in Israel on the transfer date | Exempt for a gift to a relative who is an Israeli resident, under section 97(a)(5) | There is no inheritance tax in Israel |
A gift transfers the property today, but it also transfers control over it. That is the heart of the matter, more than any tax line.
How it is done in Romania: a deed of gift before a notary
Under Article 1011 of the Romanian Civil Code, a gift is made by a notarial deed, and if not, it is absolutely void. There is no "verbal" gift and no gift by private document, not even between parents and children.
What to bring to the notary, according to checklists from notary offices in Romania:
- Identity documents of the donors and the recipients.
- Property documents: the purchase contract and an up-to-date land register extract.
- A tax certificate from the local authority showing there are no debts on the property.
- Documents proving the relationship, such as birth and marriage certificates, because they are what qualifies for the exemption.
- The compulsory home insurance policy (PAD).
An Israeli document comes with an apostille and a certified translation into Romanian. Someone who cannot attend the signing gives a special power of attorney, signed at a Romanian consulate or before a notary in Israel with an apostille. We covered this route in our guide to a power of attorney.
What it costs: tax, notary and registration
Transfer tax. Under Article 111 of the Fiscal Code (Law 227/2015), a gift between spouses and between relatives and in-laws up to and including the third degree is not taxable. The first degree is parents and children, the second is grandparents, grandchildren and siblings, and the third is uncles and aunts, nephews and nieces, great-grandchildren and great-grandparents. A gift to someone who is not such a relative is taxed like a sale: 3% if the donor held the property for up to three years, and 1% after three years, according to a breakdown by notari.pro.
Notary. The fee is set on a sliding scale according to the property's value, plus VAT. According to one notary office in Bucharest, on a property worth 300,000 lei it is about 3,705 lei before VAT. On a more expensive property the amount rises, but at a falling marginal rate.
Registration. Registering the recipients in the land register of ANCPI costs 0.15% of the value for an individual.
The clock for tax on sale starts again
This is the most common trap. The exemption applies to the gift itself, not to what happens afterwards.
According to notari.pro, when someone who received a property as a gift sells it, the Romanian tax rate is set by the time elapsed since the date of the deed of gift. In other words, parents who owned the house for ten years and would have paid 1% had they sold it themselves give it to their daughter, and she sells it a year later: she will pay 3% of the transaction value.
Anyone planning to sell soon needs to weigh the gift against the timeline of the sale, not only against the inheritance calculation.
Anyone planning to sell soon needs to weigh the gift against the timeline of the sale, not only against the inheritance calculation. We wrote about tax on sale in a separate guide.
The Israeli side: section 97(a)(5)
Under the Income Tax Ordinance (in Hebrew), a gift is treated as a "sale" for capital gains tax. A property in Romania owned by an Israeli resident is a foreign asset, so it is examined under the Ordinance. Section 97(a)(5) exempts a gift to an individual who is a relative, or to another individual where the assessing officer is satisfied that the gift was made in good faith, provided the recipient is not a non-resident.
Two practical consequences:
- The child inherits the "tax history". Under the definition of "acquisition date" in section 88, someone who received an asset as an exempt gift steps into the donor's shoes: the acquisition date and cost are those of whoever bought the asset other than as a gift. The tax is deferred, not erased.
- A child living abroad is a different case. If the son or daughter is a non-resident under Israeli law, this exemption does not apply, and the tax must be checked before signing.
Giving the house and continuing to live in it
Many parents want to transfer ownership but keep using the house. Romanian law recognises a common solution: a gift with a reserved lifetime usufruct (rezerva dreptului de uzufruct viager). The children receive ownership, and the parents keep the right to live in and use the property for the rest of their lives.
You can also impose obligations on the recipient, for example to look after the donor, but that complicates matters when the recipient is a minor.
Minor children, mortgage and land
Minors. A minor can receive a gift without obligations, and the parents sign on their behalf, without approval from the guardianship court. A gift with obligations requires such approval. Most importantly, under Article 144 of the Civil Code, selling or mortgaging a minor's property requires prior court approval, which is given only if the act meets a need of the minor or is clearly to their benefit, according to a legal analysis by law-partners. A house registered in the name of an 8-year-old is a house that is very hard to sell until they grow up.
Mortgage. If there is a mortgage on the property, the charge stays on it after the gift too. Talk to the bank before the notary, not after.
Land. For a villa bought with a Superficie right, the gift transfers ownership of the building and the right to use the land, not the land itself. We wrote about this distinction in our article on land ownership.
When a gift is a less good idea
- When you may need the property or the money from it. After signing, the decision to sell or let belongs to the children.
- When a sale is close. The three-year clock resets.
- When the child is a non-resident. The Israeli exemption does not apply.
- When there is more than one child and no overall plan. A gift to one may encroach on the others' reserved share, if the succession is governed by Romanian law. According to notari.pro, a reserved heir can ask for such a gift to be reduced after the death.
There are also plenty of good reasons to give: the children are settled early, there is no succession procedure in another country, and a property a child receives as a gift from their parents is, as a rule in Romania, their own separate property and not joint property with their spouse, unless the donor expressly provided otherwise (Article 340 of the Civil Code). Under Israeli law too, a gift received by one spouse is excluded from the balancing of resources. See our article on divorce and property in Romania.
Frequently asked questions
Is there tax on gifting a property to children in Romania?
No. Under Article 111 of the Romanian Fiscal Code, a gift between parents and children, between spouses and between relatives up to the third degree is exempt from transfer tax. You pay the notary's fee and registration in the land register, 0.15% of the value for an individual.
Can I sign the deed of gift from Israel?
The deed is signed before a notary in Romania, but you do not have to travel. You can give a special power of attorney at a Romanian consulate or before a notary in Israel, with an apostille and a certified translation, and a representative will sign on your behalf.
If my daughter sells the property she received as a gift, how much tax will she pay in Romania?
The tax rate is set by the time since the date of the deed of gift: 3% of the transaction value if she sells within three years, and 1% after three years. The time you owned the property does not count for her.
Is a gift of a foreign property to a child exempt from tax in Israel?
Under section 97(a)(5) of the Income Tax Ordinance, a gift to an individual who is a relative is exempt from capital gains tax if the recipient is not a non-resident. The recipient steps into the donor's shoes for the acquisition date and cost, so the tax is deferred to the future sale. Check your own case with a tax adviser.
Can I give the house away and keep living in it?
Yes. In Romania it is common to gift a property while reserving a lifetime usufruct (uzufruct viager). The children receive ownership, and the parents go on living in and using the house.
The bottom line
Gifting a property in Romania to your children is relatively simple and cheap: a notary, no transfer tax for relatives, and in Israel an exemption for a relative who is an Israeli resident. But it also transfers control, resets the clock on tax on sale, and gets complicated when the child is a minor or lives abroad.
If you are considering passing a property in Romania to your children, in our project in Balotești or anywhere else, book a 30-minute call with me. We will go through the timeline together, the questions for the notary and what to check with your tax adviser.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal: Civil Code (Law 287/2009) and Fiscal Code (Law 227/2015) · notari.pro: deed of gift, documents, tax and costs (24.08.2026) · notari.pro: tax on selling a property in 2026 · Notariat Dorobanți: deed of gift · law-partners.ro: real estate held by minors · Land registration authority (ANCPI) · Income Tax Ordinance, Part E: capital gains (in Hebrew) · Israel Tax Authority.
This article is for general information only and is not legal, tax or financial advice. The figures are correct as of October 2026. Gifting a property is a decision that is hard to reverse, and it depends on the recipient's tax residency and the law that will govern the succession. Before signing, consult a Romanian notary or lawyer and an Israeli tax adviser.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
