Bucharest’s residential property market offers a range of prices and rental yields, depending on location and property type. Global Property Guide reports an estimated average gross residential rental yield of 6.91 per cent for Bucharest in its July 2026 update. This is a market estimate before costs, not a return an investor can expect or a guarantee of future performance.
Purchase price, achievable rent, vacancy, management costs, tax, building condition and eventual resale all determine whether an investment performs as expected. Net returns can be lower than gross yields, and property values and rental income can fall.
Foreign buyers must also consider how Romanian law treats the specific asset they intend to acquire. A flat, a house with land and a development site can raise different legal and ownership questions.
Romania’s Law 312/2005 addresses foreign acquisition of private ownership rights over land. The applicable rules depend on the buyer’s nationality and legal status, as well as the asset and transaction. The interview below discusses these issues in general terms.
Mihnea Zamfirescu, Senior Partner at LegalHunt, explains what international investors should establish before committing to a Romanian real-estate transaction.
Can a foreign investor buy Romanian property directly?
Mihnea Zamfirescu: “The starting point is understanding exactly what is being acquired.”
Romanian law distinguishes between buildings and land, and the buyer’s nationality and legal status may affect how certain property rights can be acquired.
With an apartment, direct acquisition may be possible, but the title and any rights over the underlying land must still be reviewed. When someone is buying a house with a garden, development land or another asset in which land forms a substantial part of the transaction, the ownership analysis can be different.
Therefore, the question is not whether a foreign investor can buy property in Romania, but whether that investor can directly acquire all the rights included in the particular title.
When does a Romanian company become relevant?
Mihnea Zamfirescu: A Romanian company should not automatically be the default structure for every foreign investor.
For an apartment, direct ownership may be the simpler option where the legal framework allows it. A Romanian company can become more relevant when land is a significant part of the acquisition or the transaction involves a development project or commercial property.
What is the biggest mistake investors make before due diligence?
Mihnea Zamfirescu: Becoming contractually committed too early.
A reservation agreement or preliminary sale agreement may appear to be a routine step, but it can already create important legal and financial consequences. Before paying a material deposit, the buyer should understand what is being acquired, and confirm that the proposed ownership structure works.
Otherwise, problems with title, cadastral documentation or permits may only emerge after the buyer’s negotiating position has weakened.
What does legal due diligence cover?
Mihnea Zamfirescu: The review starts with the title. Who owns the property? Is the seller entitled to dispose of it? Are mortgages, easements, litigation or other third-party rights registered? The Land Book and cadastral documentation should then be compared with the asset actually being sold.
Depending on the property, the review may also cover building permits, completion documentation, planning restrictions, leases and other rights or obligations affecting the asset.
For older properties, particular attention may be required when the physical layout differs from cadastral records or construction documentation is incomplete.
What happens if due diligence identifies a problem?
Mihnea Zamfirescu: A legal issue does not necessarily end the transaction. It may justify a price adjustment or lead to specific conditions, warranties or termination rights being included in the agreement.
In other cases, the risk may materially change the investment case. The purpose of due diligence is to identify that risk early enough for the buyer to decide how it should be addressed.
Can a foreign investor complete the transaction remotely?
Mihnea Zamfirescu: In appropriate cases, substantial parts of a Romanian property acquisition can be handled through a properly drafted power of attorney. The document may authorise a representative to sign agreements or complete certain Land Book and transaction formalities.
When the power of attorney is signed outside Romania, notarisation, apostille or legalisation requirements and certified Romanian translations may also need to be considered.
The wording should match both the transaction and the Romanian notary’s requirements. Generic powers of attorney are generally unsuitable for significant property acquisitions.
When should an investor involve a Romanian real-estate lawyer?
Mihnea Zamfirescu: Before signing anything that creates a material commitment.
An investor does not need Romanian counsel simply to browse listings or assess whether Romania belongs on an investment shortlist. But once a specific property becomes a serious possibility, the ownership structure, basic title position and first contractual documents should be reviewed.
Ideally, this happens before a substantial reservation payment or binding preliminary agreement. The earlier the legal review begins, the more options the buyer generally retains.
This article was produced in partnership with LegalHunt. LegalHunt acts as Romanian buyer-side counsel for international investors, advising on acquisition structures, title and property due diligence, transaction documents and closing.
Disclaimer: This content is for general informational purposes only and does not constitute legal, tax, financial or investment advice. The appropriate acquisition structure depends on the buyer, asset and transaction. Foreign investors should obtain transaction-specific Romanian legal advice, relevant tax advice and independent technical advice where required.