Buyers in Dubai pay a 4% transfer fee to the Dubai Land Department, on top of the price.
In Romania a new home carries 21% VAT, usually included in the price, and the buyer pays no transfer tax.
A property worth at least AED 2 million can qualify for a ten-year UAE golden visa. Romania has no such route.
Off-plan payments in Dubai go into a project escrow account; in Romania, into a dedicated account under Law 207/2025.
A home in Romania is a home inside the European Union and Schengen.
Romania vs Dubai property: the short answer
Dubai offers freehold ownership to foreigners in designated areas, a 4% Dubai Land Department transfer fee, escrow protection for off-plan buyers and a ten-year golden visa for property worth at least AED 2 million. Romania offers a home inside the European Union and Schengen, no transfer tax for the buyer but 21% VAT on new homes, and no residency for property. The choice depends less on the numbers and more on what you need the property for.
In the past few years Dubai has become one of the first destinations Israelis consider. Short flights, a skyline of new towers, aggressive marketing. Many of the buyers who reach us have already been offered a flat there. So it is worth putting the two side by side, honestly, including the places where Dubai is stronger.
Two different worlds: the EU and the Gulf
| Romania | Dubai (UAE) | |
|---|---|---|
| Bloc | European Union and Schengen | Gulf state, outside the EU |
| Currency | Romanian leu; new homes usually priced in euros | UAE dirham, pegged to the US dollar |
| Legal system | Civil law, EU rules, Romanian notary and land register | UAE federal law and Dubai emirate law, Dubai Land Department |
| Residency through property | None | Ten-year golden visa from AED 2 million |
| Typical product | Houses and apartments, family homes near the capital | Apartments and villas, large off-plan market |
For a family that wants a European anchor, a place to live part of the year and travel freely in Europe, Romania answers that. Dubai does not. For a buyer whose priority is a residence visa in a tax-light jurisdiction, Dubai has a route that Romania lacks.
Ownership: who may own what
Dubai. Under Law No. 7 of 2006 on real property registration, foreigners can own freehold property in areas designated for that purpose. Outside those areas, ownership is limited.
Romania. Foreigners can buy anywhere, and register an apartment or a building in their own name. Non-EU citizens cannot register land directly, so with a villa they use a route such as a superficies right or a Romanian company. See our article on land ownership in Romania.
Buying costs side by side
| Romania | Dubai | |
|---|---|---|
| Transfer fee or tax for the buyer | None | 4% of the price to the Dubai Land Department |
| VAT on a new home | 21% | Residential sales are generally zero-rated or exempt from UAE VAT |
| Notary and registration | Notary fee scale; land register fee 0.15% for individuals | DLD registration and trustee fees |
| Annual property tax | Local tax set by the local authority | No annual property tax as such; local service fees apply |
Note what this table does not show. VAT in Romania is usually included in the price of a new home; in Dubai the 4% fee is added on top. Always compare the full price on signing day. For Romania in detail, see our guide to property buying costs and our guide to VAT on new homes.
Off-plan protection: escrow in Dubai, the Nordis law in Romania
Both markets sell a great deal off-plan, and both have tightened protection.
- Dubai. Under Law No. 8 of 2007, developers must hold buyers' payments in a project escrow account, released against construction milestones.
- Romania. Under Law 207/2025, known as the Nordis law, payments under a preliminary contract go into a dedicated project account, with caps on advance payments and new obligations for developers. We break it down in our checklist under the Nordis law and in the story of the apartment sold twice.
In both places, the protection only works if you check it. Ask for the account details in writing and make sure your payments go into it.
Dubai and Romania are not really competing for the same buyer.
Residency: the golden visa question
In Dubai, a property worth at least AED 2 million can qualify the owner for a ten-year golden visa, including, under rules updated in 2026, a mortgaged or off-plan property. Romania has no such route: a golden visa bill was withdrawn from the Senate in December 2025. See our guide to residence permits in Romania.
If residency is the goal, Dubai has the edge. If the goal is a home in Europe, Romania does.
Currency, distance and daily life
- Currency. The dirham is pegged to the US dollar, so a euro- or shekel-based buyer carries dollar exposure. In Romania, prices are usually in euros and the local currency is the leu; see our article on euro vs lei mortgages.
- Flights. Both are a short flight from Tel Aviv. A direct flight to Bucharest takes about 2 hours and 45 minutes, in the same time zone. See our guide to flights from Israel to Bucharest.
- Climate and lifestyle. Four seasons, forests and lakes near Bucharest; desert heat in Dubai for much of the year.
Financing
Both markets offer mortgages to non-residents, on different terms. In Romania, financing from a Romanian bank for an Israeli resident is possible, typically with a significant down payment. The loan and its terms are subject to the client's review and approval by the lending bank only. We describe the process in our step-by-step mortgage guide.
Frequently asked questions
Is it better to buy property in Dubai or in Romania?
It depends on the goal. Dubai offers freehold ownership in designated areas and a golden visa from AED 2 million. Romania offers a home inside the EU and Schengen, with no transfer tax for the buyer, but no residency through property.
What does it cost to buy property in Dubai?
The main cost is the 4% transfer fee to the Dubai Land Department, plus registration and trustee fees and any agent commission.
Does buying property in Romania give residency like in Dubai?
No. Romania has no golden visa. Living in Romania beyond short stays requires a residence permit on a recognised route such as work, business or family.
How are off-plan buyers protected in Dubai and Romania?
In Dubai, payments go into a project escrow account under Law No. 8 of 2007. In Romania, under Law 207/2025, payments under a preliminary contract go into a dedicated project account.
Can Israelis buy property in both?
Yes. In Dubai, in freehold areas. In Romania, anywhere, with the land registered through a route such as a superficies right or a company for non-EU buyers.
The bottom line
Dubai and Romania are not really competing for the same buyer. Dubai sells a residence visa and a city of towers in the Gulf; Romania sells a home in the European Union, with family-home suburbs around a growing capital.
If you have offers from both on the table, book a 30-minute call with me. We will put them in one table, full costs and protections, and you will see which question each one answers.
Moti Azulay, Compass Group Romania
Sources and data: Dubai Land Department (Law No. 7 of 2006; Law No. 8 of 2007; transfer fee) · UAE Government portal, golden visa · Federal Tax Authority, UAE · Romanian legislation portal (Law 207/2025; Law 312/2005; Fiscal Code) · ANCPI.
This article is for general information only and is not legal, tax or financial advice. Rules in both jurisdictions change; 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.
