How can EU, EEA and Swiss citizens buy agricultural land in Romania?

According to Law no. 17/2014, Romanian citizens, citizens of a member state of the European Union, of the European Economic Area (EEA) or of the Swiss Confederation can buy agricultural land with the observance of the applicable preemption rights and procedures.

Who has preemption rights?

According to Law no. 17/2014, as recently amended by Law no. 175/2020, the following have preemptive rights at an equal price and under equal conditions in the following order:

• First rank preemptors: co-owners, first-degree relatives, spouses, relatives and in-laws up to the third degree inclusive;
• Second rank preemptors: owners of agricultural investments for orchards, vineyards, hops, exclusively private irrigation, and/or tenants, owners of agricultural investments;
• Third rank preemptors: owners and/or tenants of agricultural land neighboring the land subject to sale; Fourth rank preemptors: young farmers (up to 45 years old);
• Fifth rank preemptors: The "Gheorghe Ionescu-Șișești" Academy of Agricultural and Forestry Sciences and research and development units;
• Sixth rank preemptors: individuals with residence/domicile located in the administrative units where the land is located or in neighboring administrative units;
• Seventh rank preemptors: the Romanian state, through the State Domains Agency.

What is the preemption procedure?

The seller shall register, at the town hall within the administrative jurisdiction where the land is located, a request to display the offer for the sale of agricultural land situated in non-built-up areas, in order to bring it to the attention of preemptive rights holders.

Within 5 working days from the date of registration of the request, the town hall is obliged to display the sale offer for a period of 45 working days at its headquarters and, if applicable, on its website.

Furthermore, within 10 working days from the date of registration of the request, the town hall is obliged to notify preemptive rights holders, at their domicile, residence, or, if applicable, their headquarters, of the registration of the sale offer; in case preemptive rights holders cannot be contacted, the notification shall be made by displaying it at the town hall's headquarters or on the town hall's website.

Moreover, the sale of the land at a price lower than that requested in the sale offer, on terms more advantageous than those indicated therein, or without complying with the conditions of the buyer's domicile/residence/headquarters in Romania, shall result in the sale being null and void.

What is the preemption deadline?

The preemptive rights holder must, within the 45 working days period, express their intention to purchase in writing, communicate acceptance of the seller's offer, and register it at the town hall where it was displayed.

Before the expiration of the 45-day period, the seller submits a request to withdraw the offer or may modify the information included in the sale offer, in which case the procedure for registering the request is resumed.

What are the effect of excessing the preemption rights?

If multiple preemptive rights holders of different ranks express their intention to purchase in writing, at the same price and under the same conditions, the order of preference provided by law is applied.

If multiple preemptive rights holders of the same rank express their intention to purchase in writing and no other preemptive rights holder of a higher rank has accepted the offer, at the same price and under the same conditions, the order of preference provided by law within the same rank is applied.

If a preemptive rights holder of a lower rank offers a higher price than that in the sale offer or than the one offered by other preemptive rights holders of a higher rank who accept the offer, the seller may restart the procedure with the new price.

What happens if the preemptors do not wish to buy the land?

If preemptors do not express their intention to purchase the land, the alienation through sale of agricultural land located outside built-up areas can be made to individuals or legal entities, subject to the following cumulative conditions:

• they must have had their domicile/residence/headquarters located in Romania for at least 5 years prior to the registration of the sale offer;
• they must have carried out agricultural activities in Romania for at least 5 years prior to the registration of the sale offer;
• in the case of individuals, they must have been registered with the Romanian tax authorities for a minimum of 5 years prior to the registration of the sale offer;
• in the case of legal entities, a minimum of 75% of the total income of the last 5 fiscal years must represent income from agricultural activities, and the associates/shareholders who control the company must prove their domicile in Romania for at least 5 years prior to the registration of the sale offer. If preemptors' rights are not exercised and none of the potential buyers meet the conditions to purchase the agricultural land located outside built-up areas, the sale can be made to any individual or legal entity.

In this case, the final approval required for the conclusion of the sale contract in authentic form by the notary public or the issuance by the court of a judgment that acts as a sale contract is issued by the territorial structures for land up to 30 hectares inclusive, and for land over 30 hectares, by the central structure.

What is the penalty for failing to respect the preemptive right?

The sale of agricultural land located outside built-up areas without respecting the preemptive right, or without obtaining the final approval or the approvals of the Ministry of National Defense or the Ministry of Culture, as applicable, is prohibited and is punishable by absolute nullity.

Additionally, selling the land at a price lower than that requested in the sale offer, under more advantageous conditions than those stated therein, or without respecting the conditions of the buyer's domicile/residence/headquarters in Romania, results in the sale being null and void.