Of 12 claims we checked against the law, only one is fully true: the buyer in Romania pays no purchase tax. Three are partly true and eight are wrong.
Since 1 August 2025, VAT on a new home from a developer is 21%. The 9% transition closed on 30 September 2026. Anyone writing 19% is describing an old rule.
85% is the central bank's cap for a lei loan to someone who owns no home. In practice a Romanian bank finances buyers from abroad up to 70%, with a down payment of at least 30%.
Romania has been fully in Schengen since 1 January 2025, but Israelis stay up to 90 days in any 180, with or without property. Buying property does not give residency.
Romania's dividend tax rose to 16% for dividends distributed from 1 January 2026. Calculations based on 8% or 10% are no longer right.
Fact check: the short answer
We checked 12 claims that keep appearing on Hebrew-language websites about buying property in Romania, each one against Romanian law, the central bank's rules or an official EU source. Only one is true as stated: the buyer pays no purchase tax. Three are partly true and eight are wrong, usually because the law has changed since they were written, or because a rule for Romanians was presented as a rule for everyone.
AI tools repeat these mistakes, because they learn from the same websites. That is why every row in the table points to the primary source, not to another article.
Put simply: before you decide on the basis of a number you read online, check when it was written and where it came from.
The 12 claims at a glance
Checked on 17 October 2026. We will update the table every quarter. In the "What is written" column: the claim as it appears on Hebrew-language websites, without naming any site.
| # | What is written | Verdict | What is true today |
|---|---|---|---|
| 1 | A Romanian bank finances 85%, for buyers from abroad too | Partly true | 85% is the cap for a lei loan to someone who owns no home. For buyers from abroad: up to 70% |
| 2 | VAT on a new home is 19% (or 9%, or 5%) | False | 21% from 1.8.2025. The 9% transition closed on 30.9.2026 |
| 3 | There is no purchase tax in Romania | True | The transfer tax falls on the seller. The buyer pays notary and registration fees |
| 4 | Annual property tax is 0.1% of the property's value | Partly true | 0.08% to 0.2% of a value calculated per m², with the rate set by the local council |
| 5 | Rental income tax is 10% of the rent | False | 10% after a fixed 20% deduction, about 8% of the gross rent |
| 6 | Dividend tax on a Romanian company is low, 8% or 10% | False | 16% on dividends distributed from 1.1.2026 |
| 7 | Israelis cannot buy property in Romania | False | You can buy an apartment or a house. Land is not registered directly in the name of a non-EU citizen |
| 8 | Buying property gives you residency | False | There is no residence route through real estate |
| 9 | Romania is in Schengen, so owners can live there as long as they like | Partly true | Romania has been fully in Schengen since 1.1.2025, but Israelis are limited to 90 days in any 180 |
| 10 | The Romanian notary looks after the buyer's interests | False | The notary performs a public service and certifies the deal for both sides. The notary is not your lawyer |
| 11 | You must fly to Romania to sign | False | You can sign through a representative, with a notarised power of attorney and an apostille |
| 12 | Off-plan in Romania, your advance payments have no protection at all | False | Since 25.8.2026, Law 169/2026 requires a registered notarial contract and a dedicated project account |
Financing and tax
1. "A Romanian bank finances 85%, for buyers from abroad too": partly true
The 85% figure is real, but it applies to one case. Under Article 18 of Regulation 17/2012 of the National Bank of Romania:
- 85% is the cap for a loan in lei.
- For a foreign-currency loan the cap is lower: 80% when the borrower earns in the same currency, and 75% for a euro loan when the borrower earns in another currency.
- If you already own a home, every cap drops by 10 percentage points.
These are upper limits, not a bank's commitment. In practice, a Romanian bank finances buyers from abroad up to 70% of the price, so the down payment is at least 30%. We set out the process in our mortgage guide and the down payment in our down payment guide.
2. "VAT on a new home is 19%" (or 9%, or 5%): false
Law 141/2025 raised the standard VAT rate to 21% from 1 August 2025 and abolished the reduced rate for housing (Article 291 of the Fiscal Code). A 9% transition remained, only for buyers who had signed a contract with an advance by 1 August 2025, for a home of up to 120 m² and up to 600,000 lei before VAT. Law 161/2026 extended it to 30 September 2026, and it has now closed.
Today, a new home from a developer sold to an individual carries 21% VAT. Websites that say 19%, 9% or 5% describe rules that are no longer in force. Full details in our article on VAT on new homes.
3. "There is no purchase tax in Romania": true
The Romanian Fiscal Code has no purchase tax paid by the buyer. The tax on a property transfer is charged on the seller's income: 3% of the transaction value if the property was held for up to 3 years, and 1% after more than 3 years (Article 111). The notary calculates and collects it before signing.
That does not make buying free. The buyer pays the notary's fee, the registration fee, translations and a lawyer, and VAT on a new home. We list them in our guide to buying costs.
4. "Annual property tax is 0.1% of the property's value": partly true
Under Article 457 of the Fiscal Code, an individual's residential building is taxed at 0.08% to 0.2% of its taxable value, with the rate set by the local council. That value is not the market price. It is calculated from the built area and a fixed amount per m² in a table in the law. From 2026, the rate cannot be lower than the 2025 rate. Details in our guide to annual property tax.
5. "Rental income tax in Romania is 10% of the rent": false
The rate is 10% (Article 64), but not on the whole rent. For a regular let, a fixed 20% is first deducted from the gross income (Article 84(3), as it applies to 2026 income), and 10% is paid on the rest: about 8% of the rent. For short-term lets of up to 7 rooms, the deduction is 30% (Article 85). Older guides show a different deduction that no longer applies. And tax residents of Israel report the income in Israel as well. See our guide to rental income tax.
6. "Dividend tax on a Romanian company is low, 8% or 10%": false
Law 141/2025 raised the dividend tax to 16%, for dividends distributed from 1 January 2026 (Article 97(7) of the Fiscal Code). Anyone told to hold a single apartment through a Romanian company "because dividend tax is low" is reading a calculation that is no longer right. For non-residents, a tax treaty can change the rate, so check with a tax adviser. When a company still makes sense, in our article on buying through an SRL.
Ownership, residency and stays
7. "Israelis cannot buy property in Romania": false
Israelis buy apartments and houses in Romania and are registered as owners in the land register. The restriction is on land. Under Article 6 of Law 312/2005, a citizen of a country outside the EU acquires ownership of land only under an international treaty and on a basis of reciprocity.
A number with no date and no source is not information, it is a rumour.
In practice there are two accepted routes: a superficies right (Superficie) for the house, or a Romanian company that owns the land too. We explain both in our article on land ownership. The opposite mistake is just as dangerous: "the land will be put in a local person's name, it's only a formality". It is not.
8. "Buying property in Romania gives you residency": false
Romania's immigration authority (IGI) sets out a temporary residence permit for business activity: owning or managing a company, with investment or jobs. Private real estate is not listed there as a ground for residence. Romania has no "golden visa" for buying a home. Details in our article on residence.
9. "Romania is in Schengen, so owners can live there as long as they like": partly true
The first part is true: the Council of the EU lifted land border checks with Romania from 1 January 2025, after air and sea border checks ended on 31 March 2024.
The second part is wrong. Israel is on the list of countries whose citizens are exempt from a visa, but only for stays of up to 90 days in any 180-day period (EU Regulation 2018/1806, Annex II). Owning property does not change that limit. How to count the days, in our article on the 90/180 rule.
Signing, the notary and off-plan
10. "The Romanian notary looks after the buyer's interests": false
Under the Notaries Law 36/1995, the notary performs a service of public interest (Article 3) and certifies transactions that are not in dispute (Article 1). The notary identifies the parties, makes sure the deed is in order, collects the taxes and sends the deal for registration. The notary does not represent the buyer against the seller, and does not check the project, the developer or the commercial terms for you.
The developer's lawyer does not work for you either. With us, the company's lawyer represents the company only, and we recommend that every buyer hires an independent lawyer. How to choose a lawyer.
11. "You must fly to Romania to sign": false
A party can be represented by an agent with a special notarised power of attorney (Article 91(2) of Law 36/1995). Israel and Romania are both parties to the Apostille Convention, so a power of attorney signed in Israel gets an apostille and a certified translation. What does not exist today is remote signing by video: the contract is signed before the notary by the parties or their representatives (Article 98(2)). We cover every step in our power of attorney guide.
12. "Off-plan in Romania, your advance payments have no protection at all": false
That was close to true a few years ago. Not today. Law 169/2026, the Planning and Building Code, in force since 25 August 2026, provides in Article 422:
- A preliminary contract for a future unit only as a notarial deed, and only after the building permit is noted in the land register.
- The notary applies to note the preliminary contract in the land register on the day of signing or the next working day.
- Advance payments go into a separate developer account dedicated to the project, and spending from it is tied to construction stages.
That is not the same as a bank guarantee under Israel's Sale (Apartments) Law, so you still check. But "no protection at all" is no longer true. Registration also matters if the developer becomes insolvent: under Article 131 of Insolvency Law 85/2014, the administrator performs a preliminary contract for real estate only if it is noted in the land register, and even then under further conditions. The checklist is in our article on the off-plan contract.
Why the mistakes keep coming back, and how to check a claim yourself
Most of the mistakes in the table are not inventions. They were true once. In Romania, VAT on homes, dividend tax, the planning and building law and the rules on off-plan advance payments have all changed in the past year and a half. An article from 2023 that was never updated still shows up in search, and AI tools quote it.
Four questions for every claim you read:
- When was it written? If there is no update date, assume it is old.
- What is the source? A law with a number and an article, a regulation, or an official website. "Experts say" is not a source.
- Who does it apply to? A rule for a Romanian citizen or an EU resident does not always apply to you.
- Is it a cap or a promise? 85% in a regulation, or "up to" in an ad, does not tell you what you will actually get.
And one thing that is not in the table, on purpose: yield promises. No official body in Romania checks or approves a yield figure published in an advertisement, and it depends on rent, occupancy, taxes and costs that have not happened yet. That is why we do not show yields, and we suggest checking any such offer against the costs and the documents, not the number in the headline.
Frequently asked questions
How much does a Romanian bank finance for a buyer from abroad?
In practice, a Romanian bank finances buyers from abroad up to 70% of the price, and the down payment is at least 30%. The 85% seen online is the central bank's cap for a lei loan to someone who owns no home. In a foreign currency, and for someone who already owns a home, the caps are lower.
What is the VAT rate on a new home in Romania in 2026?
21%. The reduced rate for housing was abolished on 1 August 2025, and the 9% transition for buyers who had signed a contract before then closed on 30 September 2026.
Can an Israeli register land in Romania in their own name?
Not directly. Under Law 312/2005, a citizen of a country outside the EU acquires land only under an international treaty and on a basis of reciprocity. The house is registered in your name, and the land through a superficies right or a Romanian company.
Does buying a home in Romania give residency or citizenship?
No. Romania's immigration authority does not list buying real estate as a ground for a residence permit. Israelis enter without a visa for stays of up to 90 days in any 180-day period, with or without property.
Does the Romanian notary replace a lawyer?
No. The notary performs a public service and certifies the deal for both sides. The notary does not represent you and does not check the developer or the terms for you. For that, you hire an independent lawyer.
The bottom line
Of the 12 claims we checked, only one is true as stated. Most of the rest were true once, or are true only for some buyers.
The rule is simple: a number with no date and no source is not information, it is a rumour. In every article we point to the law itself, and if you find a mistake in ours, we would be glad to hear from you.
If you are looking at buying in Romania, with us or anywhere else, book a half-hour call with me. We will go through the claims you have read and what applies to you.
Moti Azulay, Compass Group Romania
Sources: Regulation 17/2012 of the National Bank of Romania, Article 18 (legislatie.just.ro) · Fiscal Code, Law 227/2015, Articles 64, 84, 85, 97, 111, 291 and 457, including Law 141/2025 and Law 161/2026 (legislatie.just.ro) · Law 312/2005 on land acquisition by foreigners · Romanian Immigration Inspectorate: residence for business activities · Council of the EU: Romania and Bulgaria in Schengen, 12.12.2024 · EU Regulation 2018/1806, Annex II · Notaries Law 36/1995 · Hague Conference: Apostille Convention · Law 169/2026, Monitorul Oficial No. 661, 10.8.2026 · Law 85/2014, Article 131 (lege5.ro)
This article is general information only and is not legal, tax or financial advice. The rules are correct as of 17 October 2026 and are reviewed every quarter. Before you decide, consult an independent lawyer and a tax adviser.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
