When do you need the property, and how much certainty do you need on signing day? The answers usually make the choice.
A new home from a developer is sold with 21% VAT as of October 2026. The 9% transitional rate ended on 30 September 2026.
No VAT. The seller pays 3% if held up to 3 years and 1% if longer, collected by the notary.
Off-plan, under Law 207/2025: up to 25% at structure and a further 20% at installations, into a dedicated account.
Under Law 10/1995, liability for hidden defects runs 10 years from acceptance, and for the structure, the building's whole life.
Off-plan vs ready property in Romania: the short answer
Off-plan property in Romania gives you a choice of unit, payments staged by construction phase and a new building with a warranty, in exchange for waiting and the risk of delay. A ready property gives you immediate certainty: you see what you buy and move in straight away, but it sometimes needs renovation. The second big difference is tax: a new home from a developer is sold with VAT, while a resale home from a private individual is sold without VAT, and the seller pays a transfer tax.
"Wait two years, or buy something I can see?"
This is the dilemma I hear most in a first conversation. And I understand it. Buying something that does not exist yet, in another country, is not intuitive.
But "off-plan or ready?" is really two questions. When do you need the property, and how much certainty do you need on signing day? Once you answer them, the choice is usually clear.
The comparison in one table
| Criterion | Off-plan from a developer | Ready (resale) |
|---|---|---|
| What you see before signing | Plans, specification, renders | The property itself |
| When you move in | At handover, per the contract | Right after the final contract |
| How you pay | By construction stage, into a dedicated account | Usually in one go at the final contract |
| VAT | Yes, 21% (as of 2026) | No, when the seller is a private individual |
| Transfer tax on the seller | Not on this route: the developer is taxed as a business | 1% or 3% on the seller, by holding period |
| Warranty | Builder liability under Law 10/1995 | Usually "as is" |
| Main risk | Construction delay or deviation from the specification | Hidden defects and renovation |
Off-plan: what the law gives you since 2025
The big fear of buying off-plan in Romania was born in the Nordis affair, where apartments were sold twice. Lawmakers answered with Law 207/2025, in force since 11 December 2025.
What it means in practice:
- Every future unit has its own sheet in the land register (ANCPI) before it is built.
- The preliminary contract is signed only before a notary and registered the same business day or the next.
- Reservation fees up to 5% of the price, for up to 60 days.
- Advances by stage: up to 25% at the structure stage and up to a further 20% at the installations stage.
- A dedicated project account under engineering supervision.
We explain how your money is protected in our article on the dedicated account, and how to word the preliminary contract in our guide to the preliminary contract in Romania.
From the field: the specification the developer wanted to cut
Attorney Ilan Leibovitch recalls:
A developer who had built two projects in Israel came to Bucharest proud of his quality: real parquet, German taps, kitchens out of a design magazine. He priced accordingly, but sales were slow, and within the same radius projects with a standard specification were selling at a significantly lower price. His marketer in Bucharest told him to cut the price.
I asked to see the contracts already signed, eight units from the first wave. The specification was written into them explicitly: the type of parquet, the tap manufacturer, the kitchen quality. It was a contractual commitment, not a marketing promise, and I told him he could not downgrade those eight units without exposing himself to a claim for breach of contract. I suggested splitting the remaining units into two defined specification levels, each with its own contract. It worked.
From the buyer’s side, this is the key lesson of buying off-plan: a specification written into the contract binds the developer even when the market shifts. That is why you ask for the specification, down to manufacturer and model, to go into the contract itself.
Ready property: certainty, and its price
The advantage of a finished property is simple: what you see is what you get. You can check the walls, the light, the neighbours and the traffic noise.
But with a resale property there are three things to check in particular:
Off-plan or ready is not a question of courage. It is a question of timing and certainty.
- Debts and charges on the property, through an up-to-date land register extract.
- Debts to the owners' association and to electricity, gas and water suppliers, which may follow you.
- Physical condition: plumbing, wiring, insulation and windows. Renovating an old building can turn a bargain into an ordinary deal.
We set out the full due diligence in our guide to checking a property is free of debts.
Tax: VAT versus seller tax
This is the least known difference between the two routes.
A new home from a developer is subject to VAT. According to Romania's tax authority (ANAF) and the Fiscal Code, the standard VAT rate has been 21% since 1 August 2025. The reduced 9% rate for homes up to 120 m² was a limited transitional arrangement, and it ended on 30 September 2026. In practice, as of October 2026, a new home is sold with 21% VAT, so always ask whether the price includes VAT.
A resale home from a private individual carries no VAT. The seller pays a transfer tax: 3% if they held the property for up to 3 years, and 1% if longer. The notary calculates and collects it.
We cover VAT on new homes in detail in our guide to VAT on new homes in Romania.
The warranty: what you get with a new building
Under Law 10/1995 on quality in construction, the designer, the builder and the professionals involved are liable for hidden defects that appear within 10 years of the building's acceptance. For defects in the load-bearing structure caused by failure to meet the standards, liability lasts for the building's entire life.
With a resale property it is different: a private seller is liable for hidden defects under general law, but in practice this is much harder to enforce, so a technical inspection before you buy matters far more.
Who each route suits
Off-plan suits you if:
- You do not need the property tomorrow morning.
- You want to choose the unit, the orientation and the specification.
- You are comfortable spreading payment over construction stages.
Ready suits you if:
- You need to move in or rent out immediately.
- You are not willing to accept the risk of delay.
- You have a local professional to check the physical and legal condition.
In our project, Compass on the Lake in Balotești, 29 villas are sold off-plan with handovers from December 2027, at prices from €299,900 all-inclusive, as a Walla Nadlan report (in Hebrew) described. But even with us, the first question I ask is when you need the home.
Frequently asked questions
Which is safer in Romania: off-plan or ready?
There is no single answer. Since Law 207/2025, off-plan purchases come with early registration of the unit, a notarial contract, a cap on reservation fees and a dedicated account. With a ready property, the risk shifts to debts, charges and physical condition, so thorough due diligence is essential.
Is a new home in Romania subject to VAT?
Yes, when the seller is a developer or company. As of October 2026 the rate is 21%, after the 9% transitional arrangement ended on 30 September 2026. A resale home from a private individual carries no VAT.
What if the developer is late with the handover?
It depends on what the preliminary contract says, which is why it should include a handover date and compensation for delay. Under Law 207/2025, advances are tied to verified construction stages, so the money moves only when the building does.
How long is the warranty on a new building?
Under Law 10/1995, 10 years from acceptance for hidden defects, and the building's entire life for defects in the load-bearing structure caused by failure to meet the standards.
Who pays the tax on a resale property?
The seller. They pay 3% if they held the property for up to 3 years and 1% if longer, and the notary collects the tax at signing.
The bottom line
Off-plan or ready is not a question of courage. It is a question of timing and certainty. If you need a home now, buy ready and check it down to the last screw. If you can wait, buy off-plan and check the developer, the contract and the dedicated account.
If you are weighing the two routes, book a 30-minute call with me. We will go through your timeline and what to check on each route.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal: Law 207/2025, Law 10/1995 on quality in construction, Fiscal Code · Romania's National Agency for Fiscal Administration (ANAF) · National Agency for Cadastre and Land Registration (ANCPI) · Monitorul Oficial · Walla Nadlan: "Everything Israeli, except the price: how much does a villa on the lake in Bucharest cost?" (in Hebrew).
This article is for general information only and is not legal, tax or financial advice. Tax rates and rules are correct as of October 2026 and may change. Before any transaction, consult a local lawyer and tax adviser.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
