Under the EU Succession Regulation: the law of habitual residence at death, unless you chose your nationality's law in a will.
There is no tax on a transfer by inheritance if the notarial procedure is completed within two years of death.
After two years, heirs pay 1% of the property's value. Between apostilles and translations, two years pass quickly.
Under the Civil Code, an heir accepts or rejects the inheritance within one year of its opening.
The Romanian Constitution lets foreigners acquire land through legal inheritance. A bequest by will needs a case-by-case review.
Inheriting property in Romania: the short answer
Property in Romania passes to the heirs through a succession procedure before a Romanian notary, which ends with a certificate of inheritance and registration in their names in the land register. The applicable law is set by the EU Succession Regulation: as a rule, the law of the deceased's habitual residence at death, unless they chose the law of their nationality in a will. There is no inheritance tax if the procedure is completed within two years of death; after two years, the heirs pay 1% of the property's value.
The question nobody asks on purchase day
On signing day everyone talks about price, handover and the mortgage. Nobody asks, "And what happens to this property if something happens to me?"
I know it is not a pleasant question. But investors who buy abroad are usually building something meant to pass to the next generation. Those who settle it on purchase day spare their children months of bureaucracy, in a language they do not speak, in a country they do not know.
Which law applies: Israeli or Romanian?
Romania is an EU member, so the EU Succession Regulation 650/2012 applies there. It covers deaths on or after 17 August 2015 and sets three important rules:
- The basic rule: the law of the state where the deceased had their habitual residence at death applies.
- Choice of law: a person may choose, in a will, that the whole succession be governed by the law of their nationality.
- Universal application: the law designated applies even if it is the law of a non-EU state, such as Israel.
So for an Israeli resident who owns property in Romania, Israeli law will usually apply, including to the Romanian property. But the procedure itself, transferring and registering the property, takes place in Romania and follows Romanian rules.
From the field: the Israeli will that did not govern the Romanian apartments
Attorney Ilan Leibovitch recalls:
Two brothers came to me after their father died. He had divorced their mother when they were teenagers, moved to Romania and remarried there. When he fell ill he stayed in Israel, and the sons cared for him until his death. About six months before he died, he made a will leaving them everything he owned.
They came with a probate order from the Israeli Registrar of Inheritance and asked to transfer his Romanian apartments into their names. But their father was still married in Romania, and the widow, who did not know about the will, had already opened succession proceedings before a Romanian notary. We gave the notary the death certificate, the translated will and the probate order. Two days later the notary informed us that the widow objected, and that the decision would go to court.
The case took two years, through two levels of court. The court ruled that Romanian law governed the Romanian assets, because the will did not state that Israeli law would apply, and the deceased also held Romanian citizenship and had lived in Romania for more than 25 years. Under Romanian law, the widow and the two sons each received one third.
The court relied on exactly what the will did not say: which law would apply. That is why a will that covers a property in Romania should state it explicitly, and name the property itself.
Those who settle inheritance on purchase day spare their children months of bureaucracy, in a language they do not speak.
If Romanian law applies: what to know
If the deceased was resident in Romania, or chose Romanian law, the rules of the Romanian Civil Code apply. Two of them usually come as a surprise:
- The reserved share (rezerva succesorală). The spouse, descendants and parents are "reserved heirs". Each is entitled to half of what they would have received on intestacy, even if the will says otherwise.
- One year to decide. An heir must accept or reject the inheritance within one year of its opening, usually the date of death.
The succession procedure in Romania, step by step
- Go to a notary. When the deceased's last residence was outside Romania, the competent notary is the first one approached, provided an immovable property of the estate lies in their area. You can find a notary through the National Union of Notaries Public of Romania.
- Submit the documents, translated into Romanian and apostilled where required.
- Opening the file and identifying the heirs. The notary establishes who the heirs are and, if there is a will, its validity.
- Certificate of inheritance (certificat de moștenitor). This is the document that proves who inherits what.
- Registration in the heirs' names in the land register (ANCPI).
Remember: notarial signing in Romania cannot be done remotely. Heirs who cannot travel can give a power of attorney to a representative. We cover powers of attorney and the notary's role in our guide to notaries in Romania.
The documents you will need
| Document | Note |
|---|---|
| Death certificate | Apostilled and translated into Romanian |
| Proof of kinship | Birth and marriage certificates |
| The will, if any | And any document on choice of law |
| Property documents | The purchase contract and a land register extract |
| Heirs' identity documents | And a NIF, if needed later to sell or rent out |
Tax: the two-year rule
Under the Romanian Fiscal Code, there is no tax on the transfer of property by inheritance if the succession procedure is completed within two years of death. If it is completed after two years, the heirs pay 1% of the property's value.
That is the strongest practical reason not to delay. Two years sounds like a lot, but between gathering documents, apostilles, translations and coordinating with a notary from abroad, it passes quickly.
And on the Israeli side? Israel currently has no inheritance tax, but a later sale of the property by the heirs may be taxable. This is where the Israel–Romania treaty comes in, which we cover in our guide to the Israel–Romania tax treaty. For the Israeli side, consult a tax adviser and the Israel Tax Authority.
Inheritance of land by foreigners
A frequent question with villas: what about the land? The Romanian Constitution, in Article 44, expressly allows foreign citizens to acquire land through legal inheritance. What happens with a bequest by will, and more generally with land ownership by non-EU citizens, needs a case-by-case review. We explain the land ownership rules in our article on registering the property and the land in your name.
Five steps worth taking on purchase day
- A will that expressly covers the Romanian property and, if you wish, an express choice of the law of your nationality.
- A document file in one place your heirs know about: contracts, land register extract, notary details.
- Joint ownership with your spouse, if it suits the family, after advice.
- A NIF for future heirs is not needed in advance, but they should know they will need one. See our guide to the NIF in Romania.
- Remember that a power of attorney ends on death. It is no substitute for succession planning.
In our project in Balotești we recommend that every buyer sits down with a lawyer on this point at the preliminary contract stage. It is an hour's conversation that saves a year.
Frequently asked questions
Which law will apply to my Romanian property if I live in Israel?
Under the EU Succession Regulation, the general rule is the law of your habitual residence at death, that is Israeli law, including for the property in Romania. You can choose the law of your nationality in a will. The procedure and registration themselves take place in Romania.
Is there an inheritance tax in Romania?
There is no tax if the succession procedure is completed within two years of death. If it is completed later, the heirs pay 1% of the property's value under the Fiscal Code.
Do the heirs have to travel to Romania?
Not necessarily. Notarial signing cannot be done remotely, but an heir can give a power of attorney to a representative who acts for them before the notary.
What is a certificate of inheritance?
The document a Romanian notary issues at the end of the succession procedure, stating who the heirs are and each one's share. On that basis, the property is registered in their names in the land register.
Can I leave a villa with land to children who are not EU citizens?
The Romanian Constitution allows foreigners to acquire land through legal inheritance. With a bequest by will and other legal structures the picture is more complex, so plan it in advance with a Romanian lawyer.
The bottom line
Inheritance is not a pleasant subject, but it is part of the deal. A clear will, organised documents and knowing there are two years to finish without tax turn an exhausting process into an orderly one.
If you want to make sure your Romanian property passes on smoothly, book a 30-minute call with me. We will go through what to prepare and connect you with the right professionals.
Moti Azulay, Compass Group Romania
Sources and data: European e-Justice Portal: Succession Regulation 650/2012 · Romanian legislation portal: Civil Code, Fiscal Code, Constitution, Notaries Law 36/1995 · National Union of Notaries Public of Romania · National Agency for Cadastre and Land Registration (ANCPI) · Israel Tax Authority.
This article is for general information only and is not legal, tax or financial advice. Succession law depends on family circumstances and place of residence. Before planning a succession, consult a Romanian lawyer and a tax adviser in your country of residence.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
