Tuesday, October 1, 2013

Buying of Romanian Agricultural Land by Foreigners



There has been a lot of debate lately on the law that regulates the rights of EU residents to purchase Romanian agricultural land that is why our Law Firm has decided to make some clarifications on this issue. If you do not find our post sufficient please do not hesitate to contact our lawyers in Bucharest.

Law no. 312 of 10 November 2005 regulates the acquisition of private property by foreign nationals and by foreign legal entities .
According to the law above stated citizen of a Member State, stateless persons domiciled in a Member State or in Romania , as well as the legal entity formed under the laws of a Member State may acquire ownership of agricultural land, forests and forestry land in fulfillment a period of seven years from the date of accession to the European Union.
Before the deadline of 7 years foreigners can only join the local firms and thus exploit the Romanian lands .
However it seems that until the term limitation of 7 years, Romanian authorities are preparing a series of measures that will hinder foreign access to Romanian agricultural land.
Thus, a bill that will be debated in the fall of 2013 , to discuss the possibility of introducing measures that may consist in making the people who want to buy farmland prove to have experience in agriculture (in the State of origin), of 3-5 years.
Authorities are also going to introduce the bill and option to limit the sale to foreigners of areas of maximum 500 hectares . Moreover they show that there is a variable, namely granting the right of pre-emption to the Romanian state, as well as local and existing farmers to purchase land at the expense of foreigners who want to buy land in Romania .
Until a law is emitted in this sense by the Romanian authorities a stateless persons domiciled in a Member State or in Romania , as well as the legal entity formed under the laws of a Member State may acquire the right to ownership of agricultural land , forests and forestry land in Romania.

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