Both joined the EU in 2007 and became full Schengen members on 1 January 2025.
Bulgaria adopted the euro on 1 January 2026; Romania still uses the leu.
In both countries non-EU buyers cannot register land directly: a company in Bulgaria, superficies or a company in Romania.
The buyer pays no transfer tax in Romania; in Bulgaria a municipal transfer tax of up to 3% applies.
About 17,300 new dwellings were completed in Bucharest–Ilfov in 2025, about 29% of Romania's total.
Romania vs Bulgaria property: the short answer
Romania and Bulgaria joined the EU and Schengen on the same dates, and in both a non-EU buyer can own a home but not register land directly. The main differences: Bulgaria has used the euro since 1 January 2026, while Romania still uses the leu; Bulgaria charges the buyer a municipal transfer tax, while in Romania the buyer pays no transfer tax; and Romania's market is centred on one large capital region, Bucharest–Ilfov.
Israeli investors who look at Romania almost always look at Bulgaria too. The Black Sea, Sofia, the low prices of a decade ago. It makes sense: the two countries are neighbours, similar in history and size of economy, and both are newer EU members. So here is a side-by-side comparison, including the points where Bulgaria comes out ahead.
The big picture: two neighbours, one path
| Romania | Bulgaria | |
|---|---|---|
| EU member since | 2007 | 2007 |
| Full Schengen member since | 1 January 2025 | 1 January 2025 |
| Currency | Romanian leu (euro adoption not yet scheduled) | Euro since 1 January 2026 |
| Population | About 19 million | About 6.4 million |
| Capital region | Bucharest–Ilfov, about 2.3 million residents | Sofia, about 1.3 million |
Sources: European Union, Council of the EU, European Central Bank, national statistics institutes INS and NSI.
The euro is Bulgaria's clearest advantage. A buyer whose savings and loan are in euros has no currency question in Bulgaria. In Romania, prices of new homes are usually quoted in euros, but the local currency is the leu, and mortgages are offered in lei and sometimes in euros. We explain the choice in our article on euro vs lei mortgages, and the path to the euro in our article on euro adoption in Romania.
Land: the same restriction, two solutions
This is where the two countries are most similar.
Bulgaria. Under Article 22 of the Bulgarian Constitution, non-EU citizens cannot own land in their own name. They can buy an apartment in a building; for a house with a plot, the common solution is to set up a Bulgarian company (EOOD) that owns the property.
Romania. Under Law 312/2005, non-EU citizens can own a building but cannot register land directly in their own name. The common solutions are a superficies right or a Romanian company. We explain both in our article on land ownership in Romania.
For an Israeli buying a villa, both countries require a structure for the land. The question is which one suits you, and how a bank will treat it.
Taxes and costs when buying
| Romania | Bulgaria | |
|---|---|---|
| VAT on a new home | 21% | 20% |
| Transfer tax for the buyer | None | Municipal tax, set by each municipality, up to 3% |
| Notary | Official fee scale | Fee scale by property value |
| Registration | Land register fee: 0.15% for individuals | Registry fee |
| Annual property tax | Local tax under Law 239/2025, set by the local authority | Municipal tax on the tax-assessed value |
In Romania the buyer mainly pays the notary and the land register fee; the seller of a resale property pays income tax on the sale. In Bulgaria, the municipal transfer tax is paid by the buyer, which matters most on resale purchases. For the Romanian side in full, see our guide to property buying costs in Romania and our guide to VAT on new homes.
A seaside flat and a family home near a capital are different products.
Residency and status
Neither country grants residency for buying property. In Romania, a proposed golden visa bill was withdrawn in December 2025; anyone wishing to live there needs a recognised route such as work, business or family. We set them out in our guide to residence permits in Romania. For Israelis, in both countries short stays are counted under the same Schengen rule: up to 90 days in any 180 across the whole area. See our article on Romania in Schengen.
The market: one big capital region or a coastline?
Bulgaria is known to Israeli buyers mainly for two markets: Sofia, and holiday apartments on the Black Sea coast, where demand is strongly seasonal.
Romania's residential market is concentrated around Bucharest–Ilfov, a capital region of more than 2 million people and Romania's economic centre. According to the National Institute of Statistics, about 17,300 new dwellings were completed there in 2025, about 29% of the national total. The northern suburbs, around the airport and the international schools, are a family-home market. We look at the numbers in our article on Ilfov County.
A seaside flat and a family home near a capital are different products. Decide which one you are buying before you compare prices.
What to check, in either country
- The title and the land structure. Who owns the land, and through which route will you hold it?
- The developer. Track record, completed projects, and how buyers' payments are protected. In Romania, see our checklist under the Nordis law.
- The total price. VAT, taxes and fees, in writing.
- Annual costs. Local tax, insurance, maintenance or service charges.
- An independent lawyer in the country where you buy.
Frequently asked questions
Is property in Bulgaria cheaper than in Romania?
It depends on the city and the product. Compare like with like: a new family home near a capital is not the same as a seasonal apartment on the coast. Check total prices, including taxes and fees, not averages.
Can Israelis buy land in Bulgaria or Romania?
Not directly in their own name. In Bulgaria the common route is a local company (EOOD). In Romania the routes are a superficies right or a Romanian company. Apartments and buildings can be owned directly in both.
Does Bulgaria use the euro?
Yes. Bulgaria adopted the euro on 1 January 2026. Romania still uses the leu and has not set a date for euro adoption.
Is there a property transfer tax in Romania?
No transfer tax is charged to the buyer. The buyer pays the notary fee and the land register fee, and VAT applies to new homes. The seller of a resale property pays income tax on the sale.
Are Romania and Bulgaria both in Schengen?
Yes. Both became full Schengen members on 1 January 2025, after air and sea border checks ended on 31 March 2024.
The bottom line
Romania and Bulgaria are closer than they look: same EU and Schengen path, the same land restriction for non-EU buyers. Bulgaria wins on the euro; Romania wins on a buyer-side tax bill with no transfer tax and on the depth of its capital region.
If you are deciding between the two, book a 30-minute call with me. We will build one table with the property you are looking at in each country, and compare the full cost, not the headline price.
Moti Azulay, Compass Group Romania
Sources and data: Council of the European Union · European Central Bank, Bulgaria and the euro · National Institute of Statistics, Romania (INS) · National Statistical Institute, Bulgaria (NSI) · Romanian legislation portal (Law 312/2005; Fiscal Code) · Constitution of the Republic of Bulgaria · ANCPI.
This article is for general information only and is not legal or tax advice. Rules and rates change in both countries; check them with a local lawyer before you buy.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
