On 25 August 2026, Law No. 169/2026 on the Territorial Planning, Urban Planning and Construction Code (the “Code” or “CATUC”) entered into force, representing one of the most extensive legislative reforms in recent years in the field of real estate development and construction.
The new Code consolidates into a single piece of legislation the rules governing territorial planning, urban planning, the permitting and execution of construction works, as well as construction quality requirements.
The overall direction of the reform is to establish more integrated, predictable and digitalised procedures.
The Code also clarifies and introduces provisions reflecting informal practices and needs that have emerged in recent years, including the possibility of obtaining the public authority’s approval to retain land within the built-up area on the basis of an expired Zonal Urban Plan (PUZ); rules applicable to informal settlements within localities; the investor’s mandatory provision of infrastructure when plots are included within the built-up area; the prohibition on abandoning properties in respect of which urban planning easements have been established through a PUZ and/or for which the initiator has undertaken construction/development obligations; and the continued validity, at the permitting stage, of endorsements obtained during the PUZ stage.
- A Single Legislative Framework for Urban Planning and Construction
One of the first changes introduced by the Code concerns the very architecture of the regulatory framework. The rules governing territorial planning, urban planning and construction are consolidated into a single legislative framework structured around two major components: urban and territorial planning, on the one hand, and construction, on the other.
For investors and developers, this approach should make it easier to identify the rules applicable to a project and reduce the legislative fragmentation that characterised the previous regulatory framework.
- PUG and PUZ: Reduced Flexibility in Amending Urban Planning Parameters
One of the changes with the greatest impact on developers concerns the relationship between the General Urban Plan (“PUG”) and the Zonal Urban Plan (“PUZ”).
Where a PUZ is prepared and financed by interested individuals or legal entities, the site occupancy ratio (“POT”) and the floor area ratio (“CUT”) may be increased by no more than 20% compared with the values established under the PUG.
This restriction may have direct consequences for the economic feasibility of a project. Under the previous practice, PUZs were frequently used to obtain urban planning parameters that differed significantly from those established under the PUG. The new Code reduces this degree of flexibility for planning documentation initiated by private investors.
From an acquisition perspective, the impact is significant: the planning regime established under the PUG must be examined much more carefully from the due diligence stage. It is no longer sufficient to assess the existing urban planning status on the assumption that the relevant parameters may subsequently be amended through a PUZ. Project feasibility must be tested from the outset against the limitations imposed by the new Code.
This issue is also relevant for land contractually secured prior to the Code entering into force, for which the applicable transitional regime must be assessed on a case-by-case basis.
- The Opportunity Endorsement Is Replaced by the PUZ Initiation Endorsement
The Code also changes the preliminary stage for preparing a PUZ. The mechanism previously known as the opportunity endorsement (aviz de oportunitate) is replaced by an initiation endorsement (aviz de inițiere).
Obtaining the endorsement requires the preparation of an opportunity study substantiating the need for and appropriateness of the proposed urban planning intervention.
In addition, the local public authority may prioritise PUZ documentation based on the benefits it brings to the public interest, as reflected in the action plans proposed as part of the opportunity studies.
Accordingly, the initiation stage becomes more important. For an investor, not only the technical compliance of the project will matter, but also the extent to which the proposed intervention aligns with the local authority’s development priorities.
- PUD
Another relevant change concerns the former Detailed Urban Plan (“PUD”), which under the new framework is replaced by the Detailed Urban Planning Project.
The change is not merely terminological. Under the new legislative approach, the circumstances in which a PUD may amend higher-level planning documentation are expressly provided for, thereby theoretically resolving the issue of how the relationship between the PUD and PUZ should be interpreted and how each should be applied in practice.
- Integrated Endorsement Procedure and the Single Approval
One of the Code’s key objectives is to simplify the endorsement process.
Instead of a system under which the beneficiary must successively obtain numerous endorsements from different authorities and utility operators, the Code introduces integrated endorsement mechanisms and the concept of a single approval.
The new procedure is intended to transfer part of the administrative coordination burden from the beneficiary to the public authority and to reduce the duration of the permitting process.
The Code also regulates tacit endorsement mechanisms, subject to exceptions for certain entities and endorsements that must be obtained separately. For example, certain endorsements relating to environmental protection, historical monuments or aviation continue to be governed by separate procedures.
At the same time, the new framework requires a more rigorous approach to requests for supplementary documentation, specifically to prevent successive or very late requests from causing unjustified delays to the procedures.
In practice, however, the efficiency of this system will depend on how quickly the new administrative structures become operational. During the initial implementation period, difficulties may arise in transitioning from the previous endorsement procedures to the new mechanism.
- Urban Planning Certificates and Access to Urban Planning Information
The Code places greater emphasis on access to information concerning the legal, economic and technical status of properties.
The digitalisation of registers and publication of information relating to urban planning certificates and issued permits should, over time, simplify the process of verifying the status of land and buildings.
- New Rules on Building Permits
The Code also reorganises the system for authorising construction works.
The building permit remains the general rule. However, the new legislation differentiates between the procedures applicable to buildings, engineering works and development works and introduces simplified mechanisms for certain categories of intervention.
These include prior notification and site approval.
Certain types of works, such as household outbuildings in rural areas, may also be carried out without a permit. An exemption from the permitting procedure does not, however, mean that urban planning regulations or other legal requirements applicable to the property may be disregarded.
The distinction between works requiring a permit, those eligible for a simplified procedure and those exempt from permitting must be assessed on a case-by-case basis, taking into account the nature and location of the construction, the characteristics of the intervention and any applicable special regimes. A preliminary legal assessment can mitigate the risk of incorrectly classifying the intervention and carrying out works without following the required procedure.
A building permit is valid for three years and may be suspended once, for a maximum period of 12 months.
- Regularisation of Works Carried Out Without or in Breach of a Permit
The Code also introduces relevant rules concerning works carried out without a permit or in breach of the terms of a permit.
Actions seeking demolition or regularisation are subject to a 10-year limitation period calculated from the date on which the works were actually completed.
At the same time, the Code establishes a transitional regime for certain categories of construction. For a maximum period of one year from its entry into force, regularisation may also be requested in other circumstances, provided that the statutory requirements are cumulatively met.
However, this mechanism entails significantly higher costs: in certain situations governed by the transitional provisions, the applicable charges and fees are ten times higher than those applicable where the construction was lawfully carried out.
For owners of buildings affected by permitting issues, this transitional period may therefore represent an opportunity that should be assessed promptly and on an individual basis.
- Infrastructure Becomes a Central Element of Development
The new Code places greater emphasis on the infrastructure required to implement development projects.
The action plan accompanying a PUZ may identify the necessary public and private investments, technical and utility infrastructure works and access roads, the relevant sources of financing, and the stages at which these must be implemented. It may also establish the sequence in which the various components of the project are to be permitted and accepted upon completion.
As a result, the timeline of a real estate project may become directly dependent on the prior completion of infrastructure works.
The Code also establishes a framework allowing local authorities to introduce a local land-servicing fee and to enter into urbanisation or restructuring agreements.
For developers and investors, these obligations should be assessed as early as the land acquisition stage. Infrastructure costs, the financing mechanism and the sequencing of works may substantially affect not only the project budget and timeline, but also the property’s actual economic value.
- Digitalisation of Procedures and the National Construction Register
Digitalisation is one of the key directions of the reform.
The Code establishes a framework for the electronic management of a significant proportion of the documents and information relating to urban planning and construction procedures and introduces national mechanisms for recording construction works.
For developers, the objective is to enable more efficient monitoring of documentation throughout the endorsement and permitting processes.
The practical effects, however, will not be immediate or uniform. The effective operation of the system will depend both on the development of the necessary IT infrastructure and on the ability of local authorities to implement the new obligations.
In the coming period, it will therefore be important to distinguish between what the Code provides at the legislative level and how the digital tools actually operate in practice.
- Transitional Regime: What Happens to Projects Already Underway?
For projects already under development when the Code entered into force, the key question is whether the relevant procedures must be restarted under the new rules.
The Code contains transitional provisions designed to avoid such an outcome.
As a general principle, procedures for which documentation was submitted before the Code entered into force continue under the legislation applicable when they were initiated, subject to the conditions laid down in the transitional provisions.
However, the precise point at which a procedure may be considered to have been initiated must be determined on a case-by-case basis.
For ongoing projects, it is advisable to conduct an audit of their administrative status as at 25 August 2026. Such a review can clarify whether a project may continue under the previous legislation or whether certain stages need to be adapted to the new framework.
- Secondary Legislation Is Already Shaping the Implementation of the Code
The entry into force of the Code does not mark the end of the reform process.
On 28 August 2026, Order No. 1.022/2026 of the Minister of Development, Public Works and Administration was published, regulating the procedure for preparing, amending or updating and approving territorial and urban planning documentation, the relevant forms and the list of required endorsements.
For practitioners, investors and developers, secondary legislation will be of major importance in determining how the procedures operate in practice.
In the coming period, analysing the Code alone will not be sufficient. It will also be necessary to monitor both the adoption of implementing legislation and the practice of local authorities, which will largely determine how the new rules are applied in practice.
Conclusions
The entry into force of the Territorial Planning, Urban Planning and Construction Code represents a structural change to the legal framework governing real estate development in Romania. Its effectiveness will depend to a significant extent on how the changes are implemented in practice by public authorities.
For investors and developers, the new system brings both opportunities—particularly through the integration, simplification and digitalisation of certain procedures—and additional constraints.
Issues with an immediate impact include the limitation on amending PUG parameters through a PUZ, the greater importance of infrastructure and action plans, and the new requirements concerning project permitting and phasing.
For existing projects, analysing the transitional provisions and accurately identifying the legal regime applicable to each procedure will be essential.
For new investments, conducting an urban planning assessment of the land as early as the acquisition stage becomes even more important. The PUG regime, limits on derogations, required infrastructure, applicable fees, permitting timeline and the project’s actual implementation potential should be considered together from the outset.
The new Code therefore represents more than a mere reorganisation of existing legislation. It also changes the legal and economic assumptions on the basis of which real estate projects should be assessed, negotiated and structured.