INVESTMENTS in ROMANIA

Investing: We offer a broad range of services in order to promote investment in Romanian real estate market. There are many opportunities in the current market that are quite exciting. With an overwhelming market growth, it’s hard not to be tempted to become an investor. However, when making a decision about how to invest in real estate in Romania, one has to consider both risks and opportunities of each property type available.
Immobil4u professionals will be happy to assist you throughout your whole investment cycle starting from identifying the right potential properties for you budget, acquiring all paperwork and manage your property and even manage your profits from renting and selling your property.

There are three basic options examples that we find most attractive for a potential investor in Romanian Real Estate:

Buy to Live: Use your housing allowance to buy an apartment in Romania instead of renting one. To do so, you can raise funds both outside the country and/or in Romania. Most expatriates, who can show sufficient income in Romania or abroad, are eligible for a number of mortgage/loans programs within Romanian borders or foreign banks (some restrictions may apply). Our current fiscal policy also encourages long-term foreign real estate investment. The law makes no distinction between a Romanian citizen and an expatriate buying an estate. However, if you’re foreigner the same rules apply except purchasing a land/lot/parcel. Our current legislation will prohibit foreigners to buy any land/lot/parcel with an exception of being conducting business in Romania.
Once you bough the property, the proceeds of selling the property, which was owned by the same owner for a period of three or more years, are tax exempt* for Romanian Tax. If sold before three years, in the first year, you have to pay 16% of the 75% purchase price in taxes.

Buy to Rent: There are still some communal or simply not renovated apartments left in most prestigious areas of the historic centers of Bucharest. Especially interesting architectures are buildings constructed well before 1989’s revolution. These buildings have all the features that many potential tenants are looking for: high ceilings, moldings, beautiful (or potentially beautiful) entrances, old chimneys that sometimes can be transformed into fireplaces – still a rear feature in Bucharest. When such apartments are tastefully refurbished (keeping the architecture), the rental income can generate a yearly return of your investment. Any large land/parcel/lots options are usually found in and around Bucharest. Near large development areas such as schools, Malls and shopping centers are also considered to be at interest due to lack of viable rental properties in the areas.

Buy to Sell: There are rare opportunities that allow you to get a quick return by purchasing the apartment, renovating it and then reselling it. Mostly, these are apartments that have some complications: communal apartments with multiple owners, necessity to delay transaction on Laws such as 112 and 10, delays in tenants move-out or re-registration and so forth. Renovation is also a hassle which many buyers are ready to avoid paying a premium for an apartment that is already renovated. After such investments, such options can give you a return of around 10%. Finally, just holding a property will generate you enough income due to appreciation in the fast growing market.
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