Previous Image
Next Image

FAQ

Property Management in Romania – FAQ

Q- What documents does an investor need in order to have his C managed?
A-
 Copy of Passport, Purchase & Sale Contract of property, Personal address details & name of parents, Power of Attorney to manage and rent the property and be your fiscal representative.


Q- Does it matter if I buy a property only on my name without my spouse?
A– You can buy a property on your name only but if you declare you are married, you will need a notarized signature from the spouse in order to sell it according to Romanian law.

Q- Can I buy a piece of land being a foreign national?
A– Only a Romanian person or a Romanian Co. can purchase land in Romania. You can form a Romanian Co. with you being the sole shareholder and buy.

Q- If I own an apartment in Bucharest what are my expenses once the apt is rented?
A– The owner is responsible for the real estate tax, insurance, income taxes on the rent and management fees if applicable. All other expenses such as building association fees, utilities etc. are paid by the tenant.

Q- What are the common forms of payment in Romania?
A– There are no personal checks in Romania. Payments are normally made in cash or via electronic bank transfers.

Q- What is the procedure of purchasing an apartment in Bucharest?
A– Once an apartment is chosen and a price agreed upon – a pre contract is signed in front of a Notary. Before the Pre Contract takes place the Notary obtains some documents from the court to validate the title of the property. The Notary gets paid only by purchaser but represents both sides. The Purchaser has the right to choose the Notary. At the Pre Contract a deposit is made and final contract signing date is established. If one of the sides fails to perform the transaction he is fined by double the deposit amount. When the final contract is signed, the purchaser pays the balance of the apartment price directly to the seller either in cash or by electronic transfer, and to the notary buyer pays City Tax & notary fee (both approximately 1.5% of the purchase price). If a broker is involved, normally each side pays its share.

Q- What is the procedure of renting an apartment in Bucharest?
A
– The apartment is advertised via internet, newspapers, agencies & banner. Once a tenant is selected, a formal contract is signed between the tenant and the landlord or its representative by power of attorney. The contract is registered at the department of finance of the city. The income tax is charged according to what is registered. The tenant pays the rent either in cash at the management office or via direct bank transfer to a designated account, either of the landlord or the Management.

Q- What is a NIF?
A
– In order to pay taxes on your behalf a NIF (tax ID Number is required.

Q- What’s the difference between buying an apartment as Private Person vs. a Company from a tax point of view?
A
– A private person will pay rent tax in the amount of 12% from the Rent and upon sale a 3% from the sale price. A company pays taxes according to the corporate rate of 16% from profit. If a shareholder wants to draw a dividend another 16% is due. Dividends can be drawn only annually not quarterly.