[REVISION HISTORY]

Romania investment and construction reforms

Updated 11 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-29 09:03 UTC → 2026-09-17 22:57 UTC · added ~~removed~~

Following the passage of new investment legislation in July 2026, Romania has moved into the implementation phase of the New Code of Territorial Planning, Urbanism, and Construction (CATUC), officially enacted as Law no. 169/2026. Effective August 25, 2026, the code consolidates various previous regulations into a single framework to modernize the sector and simplify procedures. Key procedural changes include a simplified prior notification system for certain renovations, which allows for tacit approval if local authorities fail to respond within 15 working days. Notably, the code now allows for the construction of individual houses up to 150 square meters in rural areas using only a prior notification. The Ministry of Development aims to reduce the total time required to obtain building permits to approximately 65 days. To streamline authorizations, the reform introduces digitalized procedures and a national Geoportal. Implementation has triggered administrative shifts and concerns. While Bucharest City Hall suspended permits from August 25 to August 31, 2026, to reorganize, other municipalities like Făgăraș have requested citizens delay submissions to allow for digital platform updates. Some regions have reported delays due to a lack of ready-to-use standardized forms from the central government. Experts and real estate groups, such as Pinwell, have warned of legal inconsistencies. In cities like Iași and Bucharest, the lack of updated General Urban Plans (PUG) may hinder effectiveness. The new code introduces a regularization procedure for illegal constructions that meet safety standards, though owners must pay significant fines, which can reach up to 1,000,000 lei. Regarding fiscal updates, the 9% reduced VAT rate for specific housing acquisitions has been extended until September 30, 2026. As of September 2026, local authorities are utilizing the new framework to address urban planning and enforcement.

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