Can foreigners buy property in Moldova
How to Buy property in Moldova as a foreigner
Today, one of the most interesting objects for investment in Moldova is real estate. This fact it is grasped by both the Moldovan and foreign investors. The subject of property rights can be any individual, legal entity, state, and local authorities. Based on this, the Parliament of Moldova has established the legal framework in the regulation of investment activity, which gradually improved in order to promote and protect investments through the establishment of stable and equitable conditions of legal, social and economic nature, to provide equal guarantees to foreign and national investors, as well as preventing and eliminating barriers to investment.
The right to property in the Republic of Moldova is recognized and protected by law, and the subject of the right to property can be any natural or legal person, the state, as well as local self-administration bodies.
Can Foreigners Buy Property In Moldova
The Constitution of the Republic of Moldova, as well as other laws of the country, do not limit the right of foreigners to own, use and dispose of immovable property in the territory of the Republic of Moldova.
Thus, foreigners can buy property in Moldova on absolutely legal grounds.
According to the Law on the regime of foreigners in the Republic of Moldova, foreigners have the right to own a residential house and other property in private ownership, to inherit or bequeath property, to exercise copyright on works of literature, art and science, discoveries, inventions, and also to possess other personal non-property rights.
Similar provisions can be found in the Land Code of the Republic of Moldova, which states that the owners of land on the right of private property may be citizens of the Republic of Moldova and foreign investors in accordance with the law.
Restrictions on buying property by foreigners in Moldova
In addition to the provisions of the law set out above, there are some restrictions regarding the procurement of immovable property by foreign citizens. These provisions directly target the sale of agricultural land. So, the Law on “Normative price and order of purchase and sale of land” specifies that the land in public ownership can be sold to individuals and legal entities of the Republic of Moldova and foreign investors, with the exception of agricultural lands and lands of forest fund that can be sold only to individuals and legal entities of the Republic of Moldova.
The same law provides that right to purchase land from the state and sell land designated for construction in municipalities, towns and villages (communes) have it individuals and legal entities from Moldova and foreign investors, except the lands from water fund, engineering networks and land of public use.
Accordingly, the right to purchase and sell agricultural land belongs to the state, individuals-citizens of the Republic of Moldova, as well as legal entities whose authorized capital does not contain foreign investments.
Summarizing the above, we can conclude that foreign citizens and stateless persons can’t acquire in private ownership, agricultural land, water resources, land intended for engineering networks, and public land.
Documents required for foreigners to buy property in Moldova
In order to purchase property in the Republic of Moldova, foreign citizens need a valid passport, moldavian identification number and proof of legal staying in the country, such as valid visa, or confirmation of crossing the border for citizens of countries who are in visa free regime with Republic of Moldova, or valid residence permit. Any additional documents are not required.
According to Moldovan legislation, real estate purchase and sale agreements must be concluded in writing and notarized.
The seller must provide documents confirming ownership of the property, and the buyer, in turn, must provide evidence of the origin of the funds with which he intends to pay for the property.
The following documents can serve as confirmation of the legal origin of funds for the purchase of real estate:
• Employment contract and salary certificate from the Republic of Moldova;
• Employment contract and certificate of salary/income from another country, bank statements, declaration from the Customs Service on the import of funds into the country;
• Certificate from the tax service about income received for the last period;
• Donation agreement certified by a notary;
• Loan agreement confirming the source of funds from the lender;
• Certificates of receipt of dividends from enterprises or commercial companies;
• Loan agreements;
• Real estate purchase and sale agreements.
If this evidence of the origin of funds is not provided, the notary has the right to refuse to certify the transaction, and also to report this to the specialized anti-money laundering unit.
In accordance with the law, the buyer must pay a state fee, which is 0.5% of the price of the property, as well as the cost of notary services.
Qualified legal assistance from professionals
We cooperate with reliable real estate agencies in Moldova who will search for a suitable property for you on the real estate market, and we, in turn, will conduct a thorough legal check of the documents for the property you have chosen, prepare all the documents necessary for concluding a transaction, and also accompany the transaction itself.
We will provide you with all the support you need when concluding real estate transactions, including:
• We will provide advice and answer all questions on real estate issues;
• We will carry out legal expertise of documents;
• We will assist in registration of real estate property;
• We will help to conclude the transaction connected with the real estate;
• We will carry out a legal expertise of the transaction, assess the risks and reduce them;
• We will defend your rights in court;
• We will help in solving other issues related to real estate.
If you need advice or assistance from a real estate lawyer, our office will be happy to assist you in this regard. Call us and get qualified legal assistance.