After the Six-Day War, Romania was the only Warsaw Pact country that refused to break off relations with Israel. In 1969 the missions became embassies.
The double tax treaty applies from 1 January 1999. Romania taxes first, Israel gives a credit up to the Israeli tax, and reporting in Israel remains mandatory.
The investment protection agreement was signed in 1998 and has been in force since 27 July 2003. The 2020 intra-EU termination does not apply to it.
Per the CBS, in 2020 some 183 thousand Jews of Romanian origin lived in Israel. Many descendants have a route to Romanian citizenship, which changes land title.
The lowest investment grade with a negative outlook, a political crisis, euro-shekel currency risk, and surveys showing a rise in antisemitic attitudes.
Romania-Israel relations: in brief
Romania recognised Israel on 11 June 1948, and since then relations between the two countries have never been broken off. In 1967 it was the only Warsaw Pact country that refused to break off relations, and in 1969 the missions were upgraded to embassies. For anyone buying a home in Romania, this relationship translates into a few practical things:
- A tax treaty for the avoidance of double taxation, which applies from 1 January 1999.
- An investment protection agreement, in force since 2003.
- A social security agreement, in force since 2013.
- Visa-free entry to the Schengen area, and a direct flight of about two and a half hours.
On the other side of the balance sheet: political instability in Romania in 2026, currency risk between the euro and the shekel, bureaucracy, and surveys showing a rise in antisemitic attitudes. In this article we lay out both sides.
The question "why Romania of all places?" comes up in almost every first conversation we have with buyers from abroad, including Israelis. Price, location and financing are part of the answer. But beneath them there is a layer people talk about less: what stands between the two countries. Agreements, history, people, and what happens when something goes wrong.
78 years without a break: the history in brief
Romania recognised the State of Israel and established diplomatic relations with it on 11 June 1948, almost immediately after its founding. In the early years, legations operated in both capitals, a lower rank than an embassy.
The moment that defined the relationship came in June 1967. After the Six-Day War, the Warsaw Pact countries decided to break off relations with Israel. Romania refused. From 1967 until the fall of communism in 1989, it was the only country in the Soviet bloc that maintained continuous relations with Israel. On 17 August 1969 the missions were upgraded to embassy rank.
These relations bore fruit:
- Immigration. According to research presented at the Wilson Center, by 1951 more than 125 thousand Jews from Romania had immigrated to Israel. Under Ceaușescu, about 1,500 to 2,000 Jews a year were allowed to leave, under secret arrangements that included payments from Israel.
- A first-of-its-kind visit. In May 1972 Golda Meir came to Bucharest, the first visit by an Israeli prime minister to a communist country.
- Mediation for peace with Egypt. On 25 August 1977 Menachem Begin visited Bucharest and asked Ceaușescu to act as a mediator with Anwar Sadat. A few weeks later Ceaușescu hosted Sadat, and in November 1977 Sadat landed in Jerusalem.
From the 21st century to today: visits, agreements and tests
After 1989, relations expanded from diplomacy into the economy, security and technology. A few milestones:
- Joint government meetings (G2G). According to the Romanian Ministry of Foreign Affairs, the prime ministers of the two countries held two joint government meetings in Israel, in November 2011 and June 2014.
- Cyber. On 7 June 2019 the two countries signed a memorandum of understanding on cyber defence cooperation.
- The embassy dispute, 2018. The Romanian government of the time approved a memorandum to move the embassy to Jerusalem. President Klaus Iohannis, who has the final word on the matter, opposed it, and the embassy stayed in Tel Aviv.
- October 2023. On 17 October 2023 the Romanian prime minister, Marcel Ciolacu, visited Israel. He was the first foreign leader to arrive after the 7 October attack.
- Solidarity Day. Law 86/2024 set 14 May as the "Day of Solidarity and Friendship between Romania and the State of Israel".
- Defence. On 21 July 2025 Romania signed a framework agreement to buy short-range air defence systems from Rafael, worth about 2.3 billion dollars.
- A state visit. On 29 June 2026 President Isaac Herzog met Romania's president, Nicușor Dan, in Bucharest. The two discussed cooperation in technology, cyber, artificial intelligence, defence, agriculture and tourism, and Dan spoke of potential for investment in both directions.
And it is important to see the complicated side too. Romania is part of the European Union, and it does not always vote on Israel's side. In both votes on a ceasefire in Gaza at the UN General Assembly, in October and December 2023, it abstained. Friendship, yes. Full alignment on every position, no.
The people: the family bridge
The connection between the countries is first of all a connection of families. According to the Central Bureau of Statistics, in 2020 about 183 thousand Jews whose country of origin is Romania lived in Israel: people born in Romania, and people born in Israel whose father was born there. The figure does not include grandchildren and great-grandchildren, so the circle of Israelis with Romanian roots is wider.
Many of them have a route to Romanian citizenship. Article 11 of the Romanian Citizenship Law (21/1991) allows anyone who lost citizenship involuntarily, and their descendants up to the third generation, to apply to have it restored without giving up Israeli citizenship. Since Law 14/2025, most applicants must prove knowledge of Romanian, and the authority has up to two years to decide. The details are in the article on Romanian citizenship for Israelis.
Why does this matter for property? Someone who is not a citizen of an EU country does not register land in Romania in their own private name. An EU citizen, including someone who has obtained Romanian citizenship, can register it directly in their own name. But citizenship is a separate process, long and not guaranteed. Do not plan a purchase around a passport you have not yet received.
The four agreements that matter to an investor
| Agreement | When | What it gives you |
|---|---|---|
| Treaty for the avoidance of double taxation | Signed on 15.6.1997, applies from 1.1.1999 | Romania taxes rent and sales first, and Israel gives a credit up to the amount of the Israeli tax |
| Agreement on the reciprocal promotion and protection of investments | Signed on 3.8.1998, in force from 27.7.2003 | Protection under international law for investments by Israelis in Romania and by Romanians in Israel |
| Social security agreement | In force from 1.1.2013 | Prevents double payment of contributions, and preserves pension rights |
| Visa-free entry | Under Schengen rules | Up to 90 days in any 180 days, across the whole Schengen area together |
On the tax treaty. It does not exempt you from tax in Israel. It prevents double taxation. Anyone holding a property in Romania reports it in Israel, and the route chosen in Israel can determine whether you get a credit for the Romanian tax at all. The details are in the article on the Israel-Romania tax treaty, and on reporting obligations in the article on reporting a foreign property to the Israel Tax Authority. The decisions themselves are made with an Israeli accountant or tax adviser.
On the investment agreement. In 2020 most EU countries signed an agreement terminating the investment agreements between themselves. The agreement with Israel was not included in the termination, because Israel is not an EU member, and the UNCTAD treaty database lists it as in force. For a buyer of one villa this is mainly background: in an ordinary dispute with a developer you go to a court in Romania, not to international arbitration.
On social security. The agreement covers old age, survivors, disability, work injury and children, but not health insurance. It is relevant mainly to those moving to live in Romania. See social security when living in Romania.
Trade, investment and flights
Trade. According to the data Israel reported to the UN COMTRADE database, in 2025 goods trade between the two countries totalled about 1.1 billion dollars: imports from Romania of about 693 million dollars, and exports to Romania of about 386 million dollars.
78 years without a break are not a guarantee of a good deal. They are, however, a foundation. The deal itself is checked against what is written in the contract and the extract.
Investment. According to the Romanian embassy in Israel, Israeli companies have invested in Romania in industry, agriculture and irrigation, property, technology and banking. Israeli developers and investors have been active in Bucharest for years in housing, offices and hotels, as the local business press documents. For anyone checking a developer, this means there is accumulated Israeli experience in the market. It does not mean every Israeli developer deserves trust. Check each one on its merits.
Tourism. According to Romania's National Institute of Statistics, in the first five months of 2025 Israel was third among the countries sending tourists to Romania, with about 60,500 tourists.
Flights. Between Ben Gurion Airport and Bucharest's airport at Otopeni there are several direct flights a day, by El Al, Wizz Air and TAROM, and in some seasons by other airlines too. The flight takes about two and a half hours, and both countries are in the same time zone. Frequency changes from season to season, and at times of security tension foreign airlines sometimes suspend flights. More in the guide to flights from Israel to Bucharest.
Romania's place: the EU, Schengen, NATO and its rating
- The European Union: a member since 1 January 2007. Consumer and banking law are also subject to European regulation.
- NATO: a member since 29 March 2004. We wrote about the significance of the border with Ukraine in the article on Romania, NATO and the war.
- Schengen: no checks at air and sea borders since 31 March 2024, and a full member since 1 January 2025. See Romania in Schengen.
- The euro: the official target is 2029, but Romania has not yet entered the ERM II mechanism, and the target has been postponed before. See Romania and the euro.
- Credit rating: BBB- at S&P and Fitch and Baa3 at Moody's, all with a negative outlook. That is the lowest grade in the investment category. S&P affirmed the rating on 3 October 2026.
Attitudes to Jews and to Israel: the balanced picture
Romania has come a long way in confronting its past. The International Commission on the Holocaust in Romania, chaired by Elie Wiesel, found in 2004 that between 280 thousand and 380 thousand Jews were murdered in territories under Romanian control between 1940 and 1944. The Romanian government adopted the report, and since 2004 has marked 9 October as the national Holocaust Remembrance Day. In 2017 Romania committed to applying the IHRA working definition of antisemitism.
The Jewish community in Romania is small: according to the World Jewish Congress, about 8,900 Jews, most of them in Bucharest. It is active, with synagogues, kashrut and education. More on this in the article on the Jewish community in Bucharest.
And now the figures that are less pleasant to read. In a survey carried out by the Elie Wiesel Institute in November 2025:
- 26% of respondents preferred that Jews be in Romania only temporarily, or not at all, compared with 19% in 2021.
- 11% said they feel "fear" of Jews, compared with 5% in 2021.
- Only 5% named Romania when asked in which countries the Holocaust took place.
The institute also reported an unprecedented rise in antisemitic discourse and far-right extremism during the 2024-2025 election period. This is a fact you need to know, not to hide. And note who publishes it: the Elie Wiesel Institute is a Romanian state institution. A country that measures the problem itself and publishes the results, even when they are unflattering, is a country that is dealing with it.
What this means in practice for a buyer from Israel
Financing. For non-residents, financing is up to 70% from a Romanian bank, subject to the bank's approval, and the equity is at least 30%. Approval is assessed separately for each buyer. The comparison with financing in Israel is in a separate article.
Tax and reporting. The tax treaty sets an order, but it does not exempt. Reporting in Israel is mandatory, even when you have paid tax in Romania. Consult an Israeli accountant before signing, not after.
Land. Without an EU passport, the house is registered in your name, and the land comes through a Superficie right registered in your name in the land register. With citizenship of an EU country, including Romanian, you can register the land itself in your name. What exactly is registered on each route: in the article on land registration for a buyer from Israel.
Language. Some of the documents will be in Romanian, so it is important to have someone at your side who translates and explains them. Choose a lawyer who represents only you, and whom you understand without intermediaries. The Israel-Romania Chamber of Commerce is one address for business connections.
The risks: what you need to take into account
Good relations between countries do not cancel risk. Here is what to weigh:
- Political risk. As of October 2026 Romania has no permanent government: the government was ousted in a no-confidence vote on 5 May 2026, and since then several candidates for prime minister have failed to win a majority. Ownership and registration do not depend on the government, but taxes, interest rates and the leu exchange rate do. See the political crisis in Romania.
- Currency risk. The price and the mortgage are in euros, and your income is probably in shekels. A swing in the euro against the shekel changes the actual monthly payment, in both directions. See euro instalments and currency risk.
- Bureaucracy. Notaries, translations, apostille, a tax identification number and a bank account. None of it is impossible, but it all takes time, and a citizenship application can take up to two years.
- Developer risk. The Nordis affair, in which hundreds of apartments were sold or registered twice, is a reminder of what happens when agreements are not registered in the land register. In its wake Law 207/2025 (the "Nordis law") was enacted, whose rules have, since 25.8.2026, been set out in Article 422(6)–(11) of the Planning and Construction Code (Law 169/2026). Among other things, the notary requests registration of the contract in the land register by the next business day, and the law requires a dedicated bank account. See the Nordis law checklist.
- Geopolitical risk. Romania borders Ukraine, and in Israel the security situation affects flights. Neither prevents a purchase, but both are worth factoring into your planning.
In our project
Compass on the Lake is a project of 29 villas on a lake in Balotești, north of Bucharest, by the developers Moti Azulay and Attorney Ilan Leibovitch. The project has a building permit, and handover is staged, starting from December 2027, in phases. A buyer without an EU passport receives the land through a Superficie right, and in our contract it is granted free of charge (cu titlu gratuit). Ilan speaks Hebrew, English and Romanian, but he represents the company only. For your own legal representation, take a lawyer of your own.
Want to go through your questions? Book a meeting with us on ZOOM or face to face in Israel.
Frequently asked questions
Has Romania ever broken off relations with Israel?
No. Romania recognised Israel on 11 June 1948, and in 1967 it was the only Warsaw Pact country that refused to break off relations with it. Relations have been continuous since then.
Is there a tax treaty between Israel and Romania?
Yes. The treaty was signed on 15 June 1997 and applies from 1 January 1999. Romania taxes rent and the gain on a sale first, and Israel gives a credit up to the amount of the Israeli tax. It does not exempt you from reporting in Israel.
Is the investment agreement between Israel and Romania still in force?
According to the UNCTAD treaty database, yes. It was signed on 3 August 1998 and came into force on 27 July 2003. The 2020 agreement terminating the agreements between EU countries does not apply to it, because Israel is not an EU member.
Do you need a visa to buy a home in Romania?
No. Israelis enter Romania without a visa, for a stay of up to 90 days in any 180 days across the whole Schengen area. To live in Romania permanently you need a residence permit, which is a separate matter from the purchase.
Does Romanian citizenship change anything in a purchase?
It changes the land: a citizen of an EU country can register it directly in their own name. Without citizenship, the house is registered in your name and the land through a Superficie right. Citizenship itself is a separate process, which can take up to two years.
How much financing can you get from a Romanian bank?
Up to 70% from a Romanian bank, subject to the bank's approval, and the equity is at least 30%. Approval is assessed separately for each buyer.
The bottom line
78 years without a break are not a guarantee of a good deal. They are, however, a foundation: a tax treaty, an investment agreement, a social security agreement, Schengen and a short flight. The deal itself is checked against what is written in the contract and the extract, not against relations between governments.
Moti Azulay, Compass Group Romania
Sources and data: Embassy of Israel in Romania: bilateral relations · Romanian Ministry of Foreign Affairs, Romanian Embassy in Tel Aviv · Wilson Center: The Ransom of the Jews · Jewish Telegraphic Agency: Golda Meir's visit, 1972 · The Jerusalem Post: Ceaușescu and peace with Egypt · Government of Romania: the cyber memorandum of understanding · The Times of Israel: the embassy dispute, 2018 · The Times of Israel: Ciolacu's visit, 17.10.2023 · TPS: Law 86/2024 · The Times of Israel: the air defence deal, 21.7.2025 · JNS: President Herzog's visit, 29.6.2026 · The Times of Israel: President Dan's remarks · Romania Insider: Israeli investors in Bucharest property · UNRIC: EU countries' votes at the UN, 2023 · Israel Central Bureau of Statistics: Jews by country of origin, 2020 (in Hebrew) · Romanian legislation database: Law 21/1991 · UNCTAD: the Israel-Romania investment agreement · EUR-Lex: the agreement terminating intra-EU investment agreements, 2020 · National Insurance Institute of Israel: agreements in force · Trading Economics based on UN COMTRADE: exports and imports · Romania Insider based on INS: tourists, 2025 · European Commission: Romania in Schengen · S&P via Yahoo Finance, 3.10.2026 · The Wiesel Commission report · IHRA: Romania · Brandeis Center: adoption of the IHRA definition · Elie Wiesel Institute: 2025 survey · Radio Free Europe: the Wiesel Institute report on the election period.
This article is for general information only and is not legal, tax or financial advice. The agreements between the countries, the law and the data may change. Before buying, we recommend consulting an independent lawyer who represents you alone, and an Israeli accountant or tax adviser.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
