Purchase a Property in Hungary

If you want to buy a property in Hungary as a foreigner, we recommend using the services of our lawyers, especially if you want to avoid language barriers. Discover below what buying real estate with our help entails.

What services related to purchasing a property in Hungary do you offer?

Our Hungarian lawyers:

• can assist with the real estate due diligence procedure;
• can advise on contractual matters;
• can represent you in front of the public notary;
• can offer support in registering the property with the Land Register.

Are there any restrictions/special requirements when buying a property in Hungary as a foreigner?

Yes, foreigners generally cannot buy agricultural land or forest plots (EU/EEA farmers may, under strict conditions).

In terms of special requirements, non-EU/EEA citizens must obtain permission from the competent county (vármegyei) or Budapest government office for the purchase of Hungarian properties (this requirement does not apply to Swiss, Norwegian, Icelandic, and Liechtenstein citizens).

Foreign citizens must also know that it may take between 2 and 3 months to obtain the permit from the local administrative office.

IMPORTANT! The permission can be obtained with the help of one of our Hungarian lawyers.

Here is also our infographic on this subject:

What are the required documents to purchase a Hungarian property?

The following:

• valid passport and residence permit (if available);
• the property title;
• the sale-purchase agreement;
• bank statement proving the buyer has the money to purchase the property;
• marriage certificate, if applicable;
• power of attorney for the representative;
• government permission for non-EU/EEA citizens.

NOTE: You must also provide a clean criminal record when applying for the government permission when acquiring real estate in Hungary. However, you do not need to worry, as the entire procedure can be completed with the help of our specialists.

What are the main steps when buying a property in Hungary?

The first step when purchasing real estate in Hungary will be to choose the property and perform due diligence in order to make sure no encumbrances are registered.

Once an agreement has been reached, the Hungarian law firm will start the procedures for obtaining all necessary permits with the local authorities, and then the property valuation begins.

Within 30 days, the purchase agreement must be submitted to the Hungarian Land Register, and after obtaining the necessary permits from the administrative office, the purchase process is completed.

NOTE: The most important phase when closing the agreement is to draft a declaration that the whole purchase amount has been paid and that the possession of the property has been transferred.

Do I need to make a down payment when I buy real estate in Hungary?

This is common practice to retain the property. Usually, 10% of the acquisition cost is paid, an amount that will be subtracted from the final price.

How long does it take to buy a property in Hungary?

• About 2 months for EU/EEA citizens;
• About 3 months for non-EU/EEA nationals.

Are there any other steps to complete after I buy a Hungarian property?

Yes, if you purchase a property in Hungary, it must be registered in the centrally organized Land Registry system.

Additionally, one must:

• transfer utility contracts in the name of the new owner;
• set up the house insurance.

Are there any real estate taxes in Hungary?

The buyer must pay a 4% tax on the total purchase price of the property within 30 days of receiving the payment order issued by the tax authority (NAV). Other costs will usually include local taxes set by the municipality, such as building tax or communal tax.

In case you need tax advice in another country, for example in the Netherlands, we recommend the team from Dutch-Accountants.com.

You can contact our skilled lawyers if you want to purchase real estate in Hungary. They will provide you with comprehensive guidance regarding taxation and other necessary obligations regarding buying a property in Hungary.