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General Partnership (SNC) in Romania — Real Estate Investment Formation Guide

Consider setting up a holding company in a tax-efficient jurisdiction (like the UAE or certain US states like Wyoming or Delaware) to own local property-holding LLCs. This isolates liability and optimizes tax on rental income and capital gains.

Last verified: June 13, 2026

Corporate Tax

16.0%

State Tax

0.0%

Formation Cost

$50

Annual Fee

$0

Forming a General Partnership (SNC) in Romania as a Real Estate Investment means a total tax burden of 16.0% and an official formation cost of $50. There is no minimum capital requirement. Standard formation takes 3-5 business days, or 1-2 business days expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$1,800

Ongoing (per year)

$1,500

Detailed cost calculator →

Why General Partnership (SNC) for Real Estate Investment?

A business model focused on acquiring, managing, renting, or selling real estate properties for profit. Choosing the right jurisdiction is critical for asset protection, minimizing capital gains taxes, and facilitating cross-border investments.

Ideal for

  • Property developers
  • International landlords
  • REIT managers
  • House flippers
  • Family offices

Challenges to watch

  • High capital requirements
  • Complex local property taxes
  • Strict foreign ownership laws in some countries
  • Illiquidity of assets

Key decision criteria

  • Look for jurisdictions with strong property rights
  • Favorable capital gains tax rates
  • Double taxation treaties (DTTs)
  • Robust asset protection laws

General Partnership (SNC) formation requirements

Minimum capital

None

Standard timeline

3-5 business days

Expedited timeline

1-2 business days

Local director

Not required

Registered office

Virtual office allowed

Notarization

Required

Foreign citizens and corporate entities can act as administrators without residency requirements.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $500,000 revenue)

Gross Revenue$500,000
Corporate Tax-$80,000
Formation Cost-$50
Annual Fee-$0
Net Profit$419,950

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 21%. Registration threshold: 395,000 RON. Non-resident providers of digital services to Romanian consumers must register for and charge VAT at the standard 21% rate, typically via the EU OSS scheme.

Banking & payments for Real Estate Investment

Opening a traditional bank account in Romania usually requires an in-person visit by the company administrator and solid proof of local economic substance. However, non-resident founders can easily use digital platforms like Wise or Revolut Business to open multi-currency accounts remotely.

Supported payment gateways

StripePayPalPayUEuPlatesc2Checkout

Remote-friendly accounts

  • Wise

    Highly recommended for non-resident founders needing quick access to RON and EUR accounts with low FX fees.

  • Revolut Business

    Offers seamless multi-currency corporate accounts and corporate cards, fully supporting Romanian entities.

Romania incentives & advantages

R&D Tax Incentives

50% extra deduction on R&D costs or a 10% tax credit deducted directly from corporate income tax.

Tax Exemption for Reinvested Profit

16% corporate tax exemption on the reinvested amount.

General Partnership (SNC) formation steps

1

Step 1: Choose and reserve a unique partnership name with the Romanian National Trade Register Office (ONRC).

2

Step 2: Draft the Articles of Association (Constitutive Act) detailing partner contributions, profit-sharing ratios, and management rules.

3

Step 3: Obtain notarized specimen signatures for the partners who will act as the administrators of the SNC.

4

Step 4: Secure a registered office address in Romania through a lease agreement or a commodatum (free use) contract.

5

Step 5: Submit the complete incorporation file, including identity documents and the Constitutive Act, to the ONRC.

6

Step 6: Register for taxation (Corporate Income Tax or Microenterprise Tax) and apply for a VAT number if applicable.

7

Step 7: Open a corporate bank account in Romania to manage the partnership's financial operations.

Real Estate Investment FAQ

Can a foreign company own real estate directly?

It depends on the country. Many nations require a locally registered entity or impose higher taxes on foreign corporate owners.

Why use an LLC for real estate?

An LLC protects your personal assets from liabilities related to the property, such as tenant lawsuits or debt obligations.

What is a holding company structure in real estate?

It involves a parent company (often in a tax-friendly jurisdiction) owning subsidiary companies that hold individual properties, isolating risk per property.

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