According to a Calcalist review in December 2008, Israeli companies' investment in Romanian land was estimated at about ₪11.8 billion, just as the crisis began.
Between late 2007 and early 2008, more than a thousand Israelis bought plots of 1 to 5 dunams, many of them agricultural, according to Calcalist.
Agricultural land on a promise, an unregistered share, a price under the table, an unchecked manager, and a forgotten tax authority. Each now has an official document that stops it.
Under Article 6 of Law 312/2005, a citizen of a non-EU country acquires land in Romania only under a treaty and on a basis of reciprocity. True then, true today.
Since 25 August 2026, Article 422 of Law 169/2026 requires a registered notarial preliminary contract and a separate account for advance payments off-plan.
2007 to 2009: the short answer
In 2007 and 2008, Israelis invested large sums in Romania, mostly in land. Many small buyers bought agricultural plots of a few dunams (a dunam is 1,000 m²) on the promise that the land would "be rezoned for building". The crisis at the end of 2008 stopped the market, and then it turned out the problem was not only prices: unregistered shares, handshake partnerships, part of the price paid "under the table", and local managers nobody checked.
Almost every one of these failures is stopped today by checking a single official document: a land register extract, a planning certificate from the local authority, the trade register, the court portal, or the notarial deed itself.
Put simply: in 2007 people bought on a story. Today you buy on documents, and every story is checked against a register.
In this article we rely only on what the business press reported at the time and on Romanian law. No company names and no investor names.
What happened: the timeline in the press
| When | What happened | Source |
|---|---|---|
| November 2005 | Romania passes Law 312/2005: a citizen of a country outside the EU acquires land only under an international treaty and on a basis of reciprocity | Law 312/2005, Article 6 |
| 1 January 2007 | Romania joins the European Union | European Union |
| January 2008 | By estimates, about 3,000 companies with Israeli capital are registered in Romania, and the Israel Tax Authority says it will act to tax income from activity there | TheMarker, 30.1.2008 (Hebrew) |
| December 2008 | A Calcalist review estimates Israeli companies' investment in Romanian land at about ₪11.8 billion. Foreign investment in Romania in January to August 2008 fell by 43% | Calcalist, 15.12.2008 (Hebrew) |
| March 2012 | Calcalist: between late 2007 and early 2008, more than a thousand Israelis, small investors, bought plots of 1 to 5 dunams, many of them agricultural. Apartment prices fell by 30% to 40% after the crisis | Calcalist, 8.3.2012 (Hebrew) |
| February 2013 | Calcalist documents types of scams in the Romanian market: unregistered partnerships, an inflated price for an incoming partner, and local managers who moved money to their own companies | Calcalist, 5.2.2013 (Hebrew) |
One point explains everything else: an Israeli could not register land in Romania in their own name, and still cannot. So many purchases at the time were made through Romanian companies, through a local partner, or with no registration at all. That is where most of the reported problems began.
The five failures, and the check that stops each one
| The failure in 2007 to 2009 | What was reported | The check today | Where to check |
|---|---|---|---|
| Agricultural land bought on a promise of "rezoning" | Rezoning took years, cost money, and sometimes never happened (Calcalist, 2012) | A planning certificate for information, and a check of the general plan (PUG) and zonal plan (PUZ) that apply to the plot | The local authority |
| A share of land not registered in the buyer's name | "Whoever is not actually registered is not considered the owner of the land" (Calcalist, 2013) | A land register extract: who is the registered owner. And if buying through a company: who the shareholders are | ANCPI (land register), ONRC (trade register) |
| Part of the price paid "under the table" | An investor who paid €102,000 found only €52,000 was officially recorded (Calcalist, 2013) | The full price in the notarial deed, and all the money from an account in your name, with its source explained | The notarial deed, the bank |
| A local partner or manager who moved money to their own companies | A manager who set up a fictitious company and moved money into it for two years (Calcalist, 2013) | Control of the company's bank account, annual financial statements, and periodic checks of the trade register and the court portal | ONRC, portal.just.ro |
| Forgetting the Israel Tax Authority | The Tax Authority opened investigations into Israelis active in Romania (TheMarker, 2008) | Reporting the property and its income in Israel | Israel Tax Authority |
1. Agricultural land and "rezoning"
The promise at the time was simple: buy an agricultural plot cheaply, and it will "be rezoned for building" when the city reaches it. In reality, according to Calcalist, rezoning took two years or more, cost money in architects' fees, local taxes and approvals, and many investors were left with agricultural land.
The check today: before paying for land, ask the local authority for a planning certificate (certificat de urbanism). Under Law 169/2026, the Planning and Building Code (Article 253), it is a mandatory information document on the property's legal and planning status, and it does not give a right to build. What counts is the plan that applies to the plot today, not what someone promises will be approved. And if the plot is agricultural land outside the built-up area (extravilan), the sale itself goes through a pre-emption procedure under Law 17/2014. How to check a plan and a permit, in our article on checking a building permit and the PUZ.
2. A share of land not registered in your name
In 2013 Calcalist described an investor who bought 5% of a large plot and received only informal documents. When he tried to check with the authorities, it turned out he was not registered anywhere. A lawyer quoted in the article explained: whoever is not actually registered is not considered the owner, and the registered partner can act alone.
The check today: a current extract from the land register (Carte Funciară) shows the registered owner, and any mortgages, seizures or notes. If the property belongs to a Romanian company, you check in the trade register (ONRC) who the shareholders are, and where the company's registered office is. The agreement between partners is written before the money moves, with a mechanism for exit and for deadlock. Details in our guide to the land register extract and in our article on registration in trust.
3. A price "under the table"
The same 2013 article describes an investor who paid €102,000, of which only €52,000 was officially recorded. The unrecorded part was not protected by any document.
The check today: the full price is written in the notarial deed, and every payment leaves from a bank account in your name. Under Law 129/2019 on preventing money laundering, the notary and the bank must check the transaction and the money, and if the checks cannot be completed, the transaction does not go ahead (Article 11(9)). In today's Romania, a partial price in the deed is not a saving. It is a risk with no protection at all. How to move the money, in our guide to transferring money.
4. A local partner or manager nobody checked
In 2013 Calcalist described two cases: a local partner who took a loan against a hotel and left the Israeli investor with the debt, and a local business manager who set up a fictitious company and moved money into it from the company he managed, for two years.
The check today: a Romanian company you own is not "fire and forget". You require access to the bank account, receive the annual financial statements, and check from time to time in the trade register that no changes were registered, and on the court portal (portal.just.ro) that there are no cases against the company. A company that does not file its statements can also be dissolved by court order at the trade register's request (Companies Law 31/1990, Article 237).
In 2007 people bought on a story. Today you buy on documents, and every story is checked against a register.
5. The Israel Tax Authority
As early as January 2008, TheMarker reported Tax Authority investigations into Israelis active in Romanian real estate, following the 2003 reform that extended tax to income from abroad.
The check today: a tax resident of Israel reports the property and its income in Israel. We set out what to report and when in our article on reporting to the Israel Tax Authority.
From the field: the plot that was sold without the owners knowing
Attorney Ilan Leibovitch recalls a client who held a plot in Romania through a Romanian company:
The client sent me the purchase agreement, but the current extract showed another company as the owner. I ordered a historical extract, and it turned out the plot had been sold in enforcement proceedings.
Our local office copied the files at the court and at the bailiff's. A company supposedly hired to provide management services to the client's company had sued it for unpaid fees. The claim was served, as the law requires, at the company's registered office in Romania. Nobody defended it, and a judgment was given. The plot was sold, the debt was paid, and nothing was left for the client's company.
It turned out the company had been left in the hands of an Israeli accountant who had died, and a relative of his carried on. The company that sued was wholly owned by that relative. The client had not visited Romania in 15 years and did not remember signing any such management agreement. The deadlines for an appeal had long passed.
Ilan's recommendations from this case are exactly the checks in the table: follow the property and the company regularly, ask for the annual reports filed with the authorities, get a copy of every agreement the company signs, and visit from time to time.
What has changed since, and what has not
What has changed:
- Off-plan: since 25 August 2026, Law 169/2026 (Article 422) requires a notarial preliminary contract, only after the building permit is noted in the land register, and advance payments into a separate account dedicated to the project.
- Developer insolvency: under Law 85/2014, Article 131, a preliminary contract for real estate can be performed after the developer enters proceedings only if it is noted in the land register, and under further conditions. Insolvency proceedings are published in the Insolvency Proceedings Bulletin (BPI) issued by the trade register.
- The money: every transaction goes through a source-of-funds check by the notary and the bank.
What has not changed:
- The land: an Israeli still cannot register land in Romania directly in their own name (Law 312/2005, Article 6). For a house there are now two accepted routes, a superficies right or a Romanian company, and both are registered. We explain them in our article on land ownership.
- Your responsibility: no register works if nobody checks it. A land register extract can be ordered online, and you can check a developer yourself from official databases, as we explain here.
As a developer in Balotești, we go through the same checks. The company's lawyer represents the company only, and we recommend that every buyer hires an independent lawyer who checks us too.
Frequently asked questions
What happened to Israelis who bought land in Romania in 2007 and 2008?
According to Calcalist, more than a thousand small investors bought plots of 1 to 5 dunams, many of them agricultural. After the 2008 crisis apartment prices fell by 30% to 40%, rezoning took years, and many investors were left with agricultural land.
Why were purchases at the time made through Romanian companies?
Because under Law 312/2005, a citizen of a country outside the EU acquires land in Romania only under an international treaty and on a basis of reciprocity. So Israelis bought through a Romanian company or a local partner, and some were never registered at all.
How do I check today that my share of the land is registered in my name?
Order a current land register extract and see who the registered owner is. If the property belongs to a company, check in the Romanian trade register who the shareholders are. Whatever does not appear in the register does not protect you.
I still hold a plot in Romania from 2007. What do I check first?
A historical land register extract, the company's status in the trade register, and a search on the court portal for cases against the company. Then check local tax arrears and the plan that applies to the plot today.
Is off-plan buying in Romania better protected today than in 2008?
Yes. Since 25 August 2026, Law 169/2026 requires a notarial preliminary contract noted in the land register, and a separate account for advance payments. It is not a bank guarantee as in Israel, so you still check the developer and the contract with an independent lawyer.
The bottom line
The failures of 2007 to 2009 did not happen because of Romania. They happened because people bought on a story, through people, without registration. Each one is stopped today by an official document you can order in advance.
If you are considering a purchase in Romania, or still hold a property or a company from earlier years, book a half-hour call with me. We will go through the documents together and build the list of checks.
Moti Azulay, Compass Group Romania
Sources: Calcalist, Israeli real estate in Eastern Europe, 15.12.2008 (Hebrew) · Calcalist, "Romania frozen? The Israelis thaw", 8.3.2012 (Hebrew) · Calcalist, scams in the Romanian property market, 5.2.2013 (Hebrew) · TheMarker, "A warning to investors in Romania", 30.1.2008 (Hebrew) · Law 312/2005 (legislatie.just.ro) · European Union: Romania · Law 169/2026, Monitorul Oficial No. 661, 10.8.2026 · Law 17/2014 (Romanian Ministry of Agriculture) · Law 129/2019 (legislatie.just.ro) · Law 85/2014, Article 131 (lege5.ro) · Law 31/1990, Article 237 (lege5.ro) · Romanian courts portal
This article is general information only and is not legal, tax or financial advice. The historical account is based on press reports from 2008 to 2013, and the rules are correct as of 17 October 2026. Before you decide, consult an independent lawyer.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
