Romanian fiducie is limited to 33 years, signed before a notary and registered with the tax authority within one month, otherwise it is void.
Only credit institutions, investment and asset management companies, insurance companies, notaries and lawyers. Not an agent, a developer or a friend.
A side agreement saying "the property is really yours" takes effect only between the parties, not against a buyer or creditor in good faith.
Romania and Israel are not parties to the 1985 Hague Convention on the law applicable to trusts and on their recognition.
In whose name each component is registered, whether there is a fiducie contract, who the fiduciary is, what is on the extract, what happens on death or bankruptcy, and what an independent lawyer says.
Trust ownership of property in Romania: the short answer
Romania has no trust in the Israeli sense, and Romania is not a party to the Hague Trust Convention. It has an institution called fiducie, in Articles 773–791 of the Civil Code, with strict conditions: a notarial contract, a fiduciary who can only be a bank, an investment or insurance company, a notary or a lawyer, a term of up to 33 years, and registration with the tax authority within one month, otherwise the contract is void. Most of what is offered to Israelis as a "trust" is in practice a side agreement, binding only on the parties to it.
The phrase "we will register it for you in trust" sounds familiar and reassuring to an Israeli ear, because in Israel lawyers hold property in trust every day. But in Romania the same word can describe three entirely different things. This article helps you understand exactly what you are being offered.
What people mean when they say "in trust"
In most cases it is a solution to the land problem: a non-EU citizen cannot register land directly in their own name. A ynet article from November 2025 (in Hebrew), in which attorney Ilan Leibovitch and I were both interviewed, described solutions in which a company holds the land component "in trust", and alongside this the buyer receives an irrevocable power of attorney.
In practice, a "trust" can be:
- Fiducie under the Civil Code. A legal, registered institution, with an authorised fiduciary.
- A side agreement. The property is registered in the name of a person or a company, and in a drawer there is a document saying it is "really yours".
- A marketing word. With no document behind it at all.
A trust in Israel versus fiducie in Romania
| Topic | Trust in Israel | Fiducie in Romania |
|---|---|---|
| Source | Trust Law, 1979 | Civil Code, Articles 773–791 |
| Who can be trustee | Any person or corporation | Only banks, investment and asset management companies, insurance companies, notaries and lawyers |
| Form | Can arise from contract, endowment or law | By law, or by notarial contract only |
| Duration | Not limited in this way | Up to 33 years from signing |
| Registration | Depends on the type of asset and tax reporting | With the tax authority within one month, and for real estate also with the local authority, otherwise void |
| Intention to benefit the beneficiary as a gift | Possible | Prohibited. Such a contract is void |
Romanian fiducie is a regulated financial institution, not a flexible way to register a property in someone else's name.
The conditions of fiducie, one by one
According to the Romanian Civil Code and a summary by avocatoo.ro:
- A notarial contract (Article 774).
- An authorised fiduciary only (Article 776): credit institutions, investment and asset management companies, insurance companies, notaries and lawyers.
- Mandatory details in the contract (Article 779), including the rights transferred, the beneficiary, the purpose and the fiduciary's powers, and a term of up to 33 years. Missing them makes the contract void.
- Registration with the tax authority within one month (Article 780), and for real estate also registration with the local authority, all on pain of absolute nullity.
- Publicity towards third parties (Article 781): from registration in the electronic archive of security interests, and for real estate also on registration in the land register.
- No intention to make a gift (Article 775): a fiducie intended to confer a free benefit on the beneficiary is void.
- A separate estate (Article 786): the assets in the fiducie are kept separate from the fiduciary's own assets.
If you are being offered a "trust" and there is no notary, no fiduciary from the list and no registration with the tax authority, it is probably not fiducie.
A side "trust" agreement: what it is worth
This is where most of the risk lies. An agreement saying "the property is registered in X's name but belongs to you" is, under Romanian law, a case of simulation: an open document and a secret one.
Under Article 1289 of the Civil Code, the secret document takes effect only between the parties to it and their successors. And it does not take effect even between them if it does not meet the substantive conditions required by law. Towards a third party in good faith, who relied on the open registration, the secret agreement is as a rule not effective.
Registration that rests on trust in one person is not ownership. It is a promise.
What this means in practice:
- The creditors of the registered owner see a property in their name.
- A buyer in good faith who bought from the registered owner relies on the registration.
- The death, bankruptcy or a dispute of the registered owner drags you into legal proceedings to prove what is written in the drawer.
Attorney Ilan Leibovitch described, in our article on land ownership, a client who registered the land share in the name of the estate agent, "because he trusts her". When she disappeared, it took a court, two hearings and a lot of money to put it right. Registration that rests on trust in one person is not ownership. It is a promise.
The land: fiducie does not erase the restriction
A question that comes up often: can the restriction on land for foreigners be bypassed through fiducie or a side agreement? I am not a Romanian lawyer, and this is a question for a lawyer. But two things are clear from the law: a secret agreement is not effective when it fails the substantive requirements of the law, and fiducie is prohibited when it is intended to confer a free benefit on the beneficiary. A structure whose whole purpose is to bypass a legal restriction is exactly the structure a court may not respect.
What you can register in your name
An Israeli registers the building in their own name, and the land is registered through one of the accepted routes: a Superficie right in your name in the land register, a Romanian company you own, or a caveat with an irrevocable power of attorney. On the differences between the routes, see our article on land ownership, and on the company, our article on an SRL.
Six questions to ask when you are offered a "trust"
- In whose name is each component registered: the building, the land, the parking space?
- Is there a notarial fiducie contract? Ask for its number and the confirmation of registration with the tax authority.
- Who is the fiduciary? Is it a bank, an investment or insurance company, a notary or a lawyer?
- What is registered in your favour on the extract? A right, a caveat, or nothing? Check it on an up-to-date extract.
- What happens if the registered owner dies, disappears or goes bankrupt?
- What does an independent lawyer say about the structure? Not the seller's lawyer.
And the Israeli side
In Israel, trusts have their own taxation and reporting chapter in the Income Tax Ordinance, and a structure described as a "trust" may trigger reporting obligations. If someone holds a property abroad for you, check with your tax adviser how it is reported, and whose income it is in the eyes of the Israel Tax Authority.
Frequently asked questions
Is there a trust in Romania?
Not in the Israeli sense. Romania is not a party to the Hague Trust Convention. There is fiducie under Articles 773–791 of the Civil Code, which requires a notarial contract, an authorised fiduciary only, a term of up to 33 years and registration with the tax authority within one month.
Who can be a fiduciary in a Romanian fiducie?
Under Article 776 of the Civil Code, only credit institutions, investment and asset management companies, investment services companies, insurance and reinsurance companies, notaries and lawyers. An estate agent, a developer or a friend cannot act as a fiduciary.
What is a side agreement saying the property is "really mine" worth?
It takes effect between the parties to it, and only if it meets the substantive conditions of the law. Towards a third party in good faith, such as a buyer or a creditor of the registered owner, it is as a rule not effective. So it is no substitute for a right registered in the land register.
Can I hold land in Romania through a fiduciary to bypass the restriction on foreigners?
That is a question for a Romanian lawyer. Under the law, a secret agreement is not effective when it contradicts substantive requirements, and fiducie is prohibited when it is intended to confer a free benefit. The accepted routes for land are Superficie, a Romanian company or a caveat with an irrevocable power of attorney.
What is the first thing to check when I am offered a "trust"?
An up-to-date land register extract: in whose name each component is registered, and what is registered in your favour. If nothing is registered in your favour, you have a promise, not a right.
The bottom line
A "trust" in Romania is not what you know from Israel. Genuine fiducie is a regulated institution and rare in home purchases, and a side agreement protects you only as long as everyone behaves well.
If you have been offered "registration in trust", book a 30-minute call with me. We will go through the structure and the extract together, and build the questions for your independent lawyer.
Moti Azulay, Compass Group Romania
Sources and data: Romanian legislation portal: Civil Code, Law 287/2009 · avocatoo.ro: fiducie in the Civil Code · legeaz.net: simulation and the secret document · HCCH: status table of the Hague Convention on trusts (1985) · ynet: "For the price of an apartment in Bucharest, you can't even buy a key in Israel" (14.11.2025, in Hebrew) · Land registration authority (ANCPI) · Israel Tax Authority.
This article is for general information only and is not legal, tax or financial advice. The information is correct as of October 2026. Any structure in which a property is registered in someone else's name requires review by an independent Romanian lawyer and an Israeli tax adviser before signing.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
