Foreigners will probably not buy agricultural land in bulk in Romania starting 2014, when restrictions are lifted, as many of them have already done so via their companies, but the Romanian state wants to introduce some conditions for the acquisition of land by foreigners, according to the Agriculture Ministry. “For example, if they buy over a certain area, say five hectares, the buyers need to be farmers and have knowledge in the field,” said Achim Irimescu, state secretary with the Agriculture Ministry.

Foreigners can already buy land in Romania, but not as individuals. They need to set up a local firm to acquire land, and this is how foreign buyers have already taken ownership of large areas of agricultural land in Romania. “The harm has already been done when the state allowed companies with foreign shareholders to buy land in Romania,” said Irimescu, referring to the over 1 million hectares of land already in the ownership of foreign companies.

Romania's total agricultural land was of 13.3 million hectares in 2010, out of which 8.3 million hectares was plough-able land.

In previous official statements, Romania announced its plans to create a land bank with first refusal on agricultural land, which could then be leased to young people, as a way to stop foreigners from buying up agricultural land in Romania from 2014.

Italian buyers rank first, with 24 percent, followed by Germans, with 15.4 percent, and buyers from Arabic countries, some 9.9 percent. Hungarians have some 8 percent of the around 1 million hectares of land owned by foreigners in Romania, while Spanish buyers, some 6 percent. Then come Austrians, with 6 percent, Danish buyers – some 4.5 percent, Greek and Dutch, with 2.4 percent each. All these investments are made through local companies with foreign shareholders.

editor@romania-insider.com

(photo source: sxc.hu)