FAQs

Q: Is Romania a stable investment area?

Q: What can I buy?

Q: How do I set-up a limited company?

Q: How does the purchase process work?

Q: How long does the purchase process take?

Q: How much does it cost to set-up a limited company in Romania & how long does it take?

Q: What additional legal fees and government taxes should I expect to pay when I purchase a property?

Q: What appreciation / return can I expect on my investment?

Q: Can I get a mortgage or finance in Romania?

Q: How can I maintain my investment?

Q: Is Romania a stable investment area?

Romania has shown dynamic growth and improvement over the last five years with EU membership and a low inflation/taxation environment. Both the short and long term future look stable.

Q: What can I buy?

As a foreign citizen you may purchase buildings but you will be able to own the land beneath the buildings only after 5 years since Romania joined the EU ( 2007).To legally purchase and own land with or without a building on it you will need a Romanian registered limited company. We recommend the use of a limited company to make property acquisitions to all foreign investors as it ensures that any associated land surface included within the property title are legally owned.

Q: How do I set-up a limited company?

To set-up a limited company within Romania all you will need is your passport or Identification card a local address to use as the registered headquarters and a company name. Should you need any assistance or independent advice regarding company set-up we would be happy to refer you to one of our local legal companies of whom we have qualified and worked with previously to ensure you receive a professional service.

Q: How does the purchase process work?

The purchase process does involve a number of small operations and checks trough out but generally speaking it is a straight forward procedure.

• Firstly we identify what type of property investment you would like to acquire ,your investment budget and expected ROI.
• If required the next step is to open a limited company to use as a purchase vehicle ,providing legal and fiscal security (see Q2)
• Find a property which suits your requirement and you wish to purchase.
• Complete a full check of ownership documentation supplied by the vendor to identify any possible discrepancies or points for concern.
• Providing the property title is clear and free of issues ,the next step is to draw up a pre contract at a local notary between yourself and the vendor. This contract details all the terms and conditions of the purchase is used as a legal binding agreement of intent to buy/sell. This contract is usually secured by a 10% deposit from the purchaser.
• Once the pre contract is completed a sale completion date will have been set. During the time period between pre contract and completion all required fiscal documentation is produced ready for completion.
• Completion of the sale is once again done at a local notary. All required documentation & terms defined within the pre contract are checked and providing all is well the final buy/sell contract is drawn up ready for signing by the vendor and purchaser. Funds are transferred as required and the buy/sell contract is signed in front of the notary as a legal third party .

Q: How long does the purchase process take?

The purchase process (Pre contract &Completion contract) can be completed within 3-5 business days providing the buyer has a company already set-up (if required), funds available in Romania and the vendor has all the ownership documentation in good order. Typically the purchase process is spread over a 2-3week period to allow plenty of time for the vendor and

Q: How much does it cost to set-up a limited company in Romania & how long does it take?

The average cost to complete company set-up is around 500€ and it will take 5-10 working days to complete.

Q: What additional legal fees and government taxes should I expect to pay when I purchase a property?

Typically notary fees for preparation and completion of legal documentation and government taxes equate to approximately 1,5% of the purchase.

Q: What appreciation / return can I expect on my investment?

Land purchases have displayed appreciations over recent years ranging from 25%-200% -depending on location. Buy to let rental yields recently achieved have typically ranged between 7%-9% P/A. Once again this depends on location and the quality of the development.

Q: Can I get a mortgage or finance in Romania?

Mortgages are becoming available for foreign investors with income generated in Romania either personally or within a limited company.

Q: How can I maintain my investment?

SC ROMAUCTION SRL offers a full rental management service to all our customers buying property to let. This comprehensive service provides customers with the confidence and piece of mind that their property will be maintained ,managed and financially controlled by a professional and experienced team. Prospective tenants are pre qualified and references taken up.