An individual's usufruct lasts at most for life, a company's at most 30 years. If no term is set, it is presumed to be for life.
If the declared value is below the notaries' minimum value, tax on creating a usufruct is calculated on 20% of that value, and on transferring bare ownership on 80%.
Usufruct ends by itself when the holder dies. The children, already registered as bare owners, become full owners.
Usufruct in Romania: the short answer
Many parents want to pass a home to their children now, without handing over the keys. Romania's Civil Code has a well-known tool for this: ownership is split in two. The children receive bare ownership (nuda proprietate), and the parents keep usufruct (uzufruct).
Under Article 703 of the Civil Code, usufruct is the right to use another person's property and take its fruits, just like an owner, on condition that the property itself is preserved. For an individual it lasts at most for life (Art. 708). When the holder dies, it ends by itself and the children become full owners (Art. 746).
Put simply: the children own the home on paper from today, the parents keep living in it and deciding about it, and when the parents are gone the home is the children's, with no succession needed for that right.
Our article on gifting a Romanian property to your children covers the gift itself. Here we go deeper into the split: what each side may do, who pays for what, and what happens in each scenario.
What each side gets
| Topic | Usufructuary (the parents) | Bare owners (the children) | Civil Code |
|---|---|---|---|
| Living in and using the home | Yes, exclusively, unless agreed otherwise | No, while the usufruct lasts | Art. 709 |
| Letting the home | Yes | No | Art. 715 |
| Transferring the usufruct | Yes, unless the deed forbids it. It still ends on the death of the original holder | Not applicable | Art. 714 |
| Routine maintenance | Pays | No | Art. 729(1) |
| Major repairs: structure, roof, walls, electrical, heating and plumbing systems | No, unless caused by skipped maintenance | Pay | Art. 729(2)–(4) |
| Insurance, if the home is insured | Pays the premiums | No | Art. 733(2) |
| Costs and charges of ownership | No | Pay | Art. 735 |
The usufructuary must tell the bare owners when a major repair is needed. If they do not act in time, he may do it himself and be repaid by the end of the year (Art. 730). He is also liable for damage caused by improper use (Art. 725).
How long it lasts
Article 708 sets three rules:
- For an individual: at most for life. If the deed sets no term, the usufruct is presumed to be for life.
- For a company: at most 30 years. A longer term is cut back to 30 years by law.
- Until someone reaches an age: a usufruct set to last until a person reaches a given age lasts until that date, even if that person dies earlier.
Article 746 lists how usufruct ends: death of the holder, expiry of the term, merger of both rights in one person, renunciation, or 10 years of non-use. Under Article 747, a court can also end it at the bare owner's request if the usufructuary damages the home or lets it deteriorate.
How it is registered
Three rules set the route:
- A notarial deed. An agreement that creates a real right to be entered in the land register must be a notarial deed, or it is void (Art. 1244). A gift must be notarial in any case (Art. 1011).
- Entry in the land register (carte funciară). Real rights in land are acquired only on registration, even between the parties (Art. 885(1)). No registration, no usufruct.
- Removal after death. When the right ends by death or at the registered term, the holder's consent is not needed to strike it off the register (Art. 885(2)).
After signing, check a fresh land register extract. It should show the children as bare owners and the parents as usufructuaries. The notary's role in Romania is explained in our notary guide.
The children own the home on paper from today, and the parents keep living in it and deciding about it.
Tax: two rules worth knowing
Article 111 of the Fiscal Code (Law 227/2015) applies to the transfer of ownership and to the transfer or creation of its dismemberments, such as usufruct and bare ownership. On a sale, the seller pays 3% if he held the property for up to 3 years, and 1% after 3 years.
Rule one: the minimum tax base. If the value declared by the parties is below the minimum value in the notaries' market study, the tax is calculated on a minimum base (Art. 111(4^1)):
- 20% of the minimum value when a usufruct is created or transferred. The same base applies when it is ended by agreement or by renunciation.
- 80% of the minimum value when bare ownership is transferred.
Rule two: the family exemption. A gift between spouses and between relatives and in-laws up to the third degree is exempt from this tax (Art. 111(2)(b)). The exemption is worded for acquiring ownership by gift. So ask the notary to confirm in writing that it covers your structure, for example a gift of bare ownership with a reserved usufruct.
And on death? The article does not mention a tax when usufruct ends by death. It mentions only termination by agreement or renunciation. Confirm what that means for your case with an accountant. The tax position in your home country is not covered here.
Full gift, split or sale: the comparison
| Gift of full ownership | Gift of bare ownership, parents keep usufruct | Sale to the children | |
|---|---|---|---|
| Who lives in the home | The children decide | The parents, for life | The children decide, unless usufruct was reserved |
| Romanian transfer tax | Exempt for relatives up to the third degree (Art. 111(2)(b)) | Exempt, if the notary confirms the exemption covers the structure | 3% or 1%, paid by the seller (Art. 111(1)) |
| Security from the parents | Not applicable | Donors who reserved usufruct need not post the security usually owed by a usufructuary (Art. 726(2)) | A seller who reserved usufruct is also exempt (Art. 726(2)) |
| On the parents' death | The home is already the children's | Usufruct ends, the children become full owners (Art. 746) | As with the split, if usufruct was reserved |
| Reserved share of other heirs | The gift counts in the calculation | The gift counts in the calculation | A sale to a descendant with reserved usufruct is presumed a gift unless proven otherwise (Art. 1091(4)) |
The last row matters for families with more than one child. If Romanian law governs the succession, the spouse, descendants and parents have a "reserved share" (rezerva succesorală): half of their intestate share (Arts. 1087–1088). A gift that cuts into it can be reduced after death at that heir's request (Art. 1092). A cheap sale to one child with reserved usufruct does not avoid this: the law presumes it is a gift.
Right of habitation: the narrower option
The Code also has a right of habitation (abitație). Its holder may live in the home with a spouse, children, parents and dependants (Art. 750). But it cannot be transferred, and the home cannot be let (Art. 752). So if the parents only want to live there, habitation is enough. If they want the option to let the home and keep the rent, they need usufruct.
Before you sign: a 7-step checklist
- Decide who gets what. Both parents together? What happens when one of them dies? Ask the notary to draft it so that the surviving parent keeps the full usufruct.
- Check any existing mortgage. A charge on the home stays on it after the split. Talk to the bank before the notary.
- Think about a future sale. To sell or mortgage the whole home you need both the bare owners and the usufructuaries in the deed, because each holds a different right.
- Minor children. Selling or mortgaging a minor's property needs prior court approval. We covered this in our article on gifts to children.
- Get a written tax position from the notary: does the relatives' exemption apply, and what is the tax base?
- Verify the registration. Order an extract after registration and check both rights.
- Align it with succession planning. If there are other children, or if another country's law may govern the succession, plan the structure with an independent lawyer. See also our guide to inheriting property in Romania.
Frequently asked questions
Can the parents let the home after giving it to the children?
Yes, if they reserved usufruct. Under Article 715 of the Civil Code, the usufructuary may let the property. With only a right of habitation, letting is not allowed (Art. 752).
What happens to the usufruct when the parents die?
It ends by itself on the holder's death (Art. 746), even if a longer term was set. The children, already registered as bare owners, become full owners. The usufruct is struck off the register without anyone's consent (Art. 885(2)).
How much tax is due on creating a usufruct in Romania?
Between unrelated parties, the tax under Article 111 of the Fiscal Code is 3% or 1%, and the minimum base for a usufruct is 20% of the notaries' minimum value. A gift to relatives up to the third degree is exempt. Ask the notary to confirm that the exemption covers your structure.
Can the children sell while the parents still live there?
They can sell their bare ownership. The buyer gets a home that the parents keep using until their usufruct ends. Selling the whole home also needs the parents' signatures.
The bottom line
Splitting a home into bare ownership and usufruct lets you pass a Romanian home to your children without leaving it. The law is clear about who lives there, who repairs and what happens on death. What is left to you is to draft it well, register it, and check the tax and the other heirs' reserved share in advance.
If you are considering this structure for a property in Romania, with us or anywhere else, book a 30-minute call with me. We will go through the questions for the notary and for your own lawyer together.
Moti Azulay, Compass Group Romania
Sources: Civil Code, Law 287/2009, consolidated text (legislatie.just.ro), Arts. 703–754, 885, 1011, 1087–1092, 1244 · Fiscal Code, Law 227/2015, consolidated text (legislatie.just.ro), Art. 111 · National Agency for Cadastre and Land Registration (ANCPI)
This article is general information only and is not legal, tax or financial advice. The rules are current as of 22 October 2026. Before signing, consult a notary, an independent lawyer and an accountant.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
