Thursday, October 31, 2013

Real estate in Romania – land use rights for foreigners

The law no. 312/2005 indicates a 7-year term restricting foreigners and other legal entities in the EU states from acquiring farming land, forests and forest land. The 7-year term concerns Romanian land ownership from its accession to EU which indicates as limit the date of 1st January 2014. Even this detail proved of great interest through the opportunities that might bring for foreign investors, there are still some other alternatives that deserve to be brought up for discussion. Real estate in Romania, according to law provisions, indicates that real rights are to be provided through the enactment of documents and, in certain cases, there will be required an urbanism certificate. Here we refer to the right to use or the superficies right of land or other types of prerogatives with the same significance and utility. A lease agreement has the authority to bring under regulation, using a legal background, the intention of an owner of land to make available a certain area for a definite period of time. This term may be reconsidered if both the owner and the lessee agree. Registration with the Land Registry is required only if this period of time goes beyond a three-year term. This can be seen as an alternative for foreign investors intending to develop their business in Romania and involving the use of land. Up until this point we referred only to private property. If we consider the lease of land which is state property then these procedures are allowed only through a Governmental Decision or other verdicts coming from local or county councils. Non-profit organization may benefit from a special treatment since a free use right can be admitted in their favor only if they are involved in charity works.

Another perspective that might be taken into consideration by foreign investors is the concession of land. Concession of land in Romania regarding public properties is regulated through the GEO’s no. 34/2006 and no. 54/2006. Direct negotiation or a public tender shall be seen as alternatives and a fundamental condition for beneficiaries concerns the importance of developing the area in question. The maximum period of time provided is of 49 years which also implies an extending term that cannot exceed half of the firstly chosen term. For the private property regulations there are effectively developed strategies defining clear stipulations. The contract containing all terms shall be registered with the Land Registry. Even if Romanian land ownership is still restricted, for business purposes the right to use a certain land property can be seen as a solid opportunity. Our lawyers provide any necessary information related to these procedures and explain all possible risks of such an operation. It is important to fully comprehend fundamental legal terms when deciding to initiate such a procedure and as well to make a lucrative choice. Our experts will further explain the necessary bureaucratic approach indicating needed certificates and possible permits required for various activities.

No comments:

Post a Comment