EXPENSES PAYABLE ON COMPLETION OF SALE The expenses for the transfer at notarial order include: The purchase of Romanian real estate is subject to Stamp Duty between 0.5% and 3% depending of the real estate value. Public Notaries Fees (0.5% of the transaction price) Completion costs in Romania invariably amount to around 5% (or less depending on value of property) of the original purchase price. This includes the lawyer and notary costs.

The majority of our clients are seeking holiday or second homes for their own use and/or investment purposes.

'Romania Revealed' sources properties from rural cottages to new five star beach resorts and anything in between. We can give you a selection of properties that fit your specific holiday and investment needs. In short, whatever you require we will be able to locate a suitable property for you in Romania.

The process
Romanian law foreign investment allows foreigners to buy buildings but not land. This restriction is simply avoided by setting up a Romania company which then owns the land. This law is due to be removed several years after EU membership in 2007. It is one of the main reasons that property prices are so attractive compared with Western Europe but it will not last.

So how does it all work?
The process is summarised below:

• Check whether the property is being sold with or without land (if with land a company formation will be necessary)
• Agree a final price with the current owners/vendor
• Draw up and agree an initial contract allowing the property to be removed from the market etc...)
  
• Sign a Notary Act (purchase contract) in front of a Romanian Public
  Notary and the Final Legal Contract
  
• You are now an official owner of a Romanian property

Company formation
It is relatively straightforward and can be done for around 1,500 Euros (including 100E to open company account) – Please ask us for details.

VAT
If both the vendor and purchaser are VAT payers then VAT on such a transfer will be ‘reverse chargeable’ for both vendor and purchaser, i.e. the net VAT cost for both parties is nil and no payment of VAT (usually 19%) needs to be made.

Corporation tax (If company is set up)
Corporate income tax (CIT) is charged at the standard rate of 16%. This will apply to purchasing properties that come with any land. The tax is reportable to the tax authorities on an accounting year basis.

Capital Gains Tax
This is not payable if you hold your property for more than 3 years, but if you sell it beforehand you will be liable to CGT at 16%

The above is for general information purposes only. It is not intended to be comprehensive or to provide any specific tax advice.