Can foreigners buy property in Hungary? A step-by-step guide
Hungary’s property market is increasingly attractive to Hungarians living abroad, expats, and international investors. But what are the actual rules and steps for foreigners who want to purchase property in Hungary? This comprehensive guide explains the process, requirements, and key considerations for all interested parties.
Who can buy property in Hungary?
- Hungarian citizens and EU/EEA citizens (including Norway, Switzerland, Liechtenstein, and Iceland) can buy property in Hungary almost as freely as locals, with no need for a special permit for residential or commercial properties (excluding agricultural land and heritage assets).
- Non-EU citizens generally need to obtain a property purchase permit from the local government office or Land Registry before completing a purchase.
- Companies registered in Hungary (even if foreign-owned) can buy property without needing a permit, making this a popular option for some expats and investors.
Buying property in Hungary: Step-by-step guide:
1. Find and reserve a property in Hungary
- Work with a local real estate agent or lawyer to identify suitable properties.
- Reserve your chosen property by paying a deposit (typically 10% of the purchase price), usually referred to as a foglaló in Hungarian contracts.
2. Hire a Hungarian lawyer
- All real estate transactions in Hungary must be countersigned by a Hungarian lawyer or notary.
- The lawyer will conduct due diligence, draft contracts, and submit applications on your behalf.
3. Preliminary agreement and due diligence
- Sign a preliminary sale and purchase agreement, which outlines the terms and secures your intent to buy.
- The lawyer checks the property’s legal status, title, debts, and any encumbrances.
4. Apply for a property purchase permit (Non-EU/EEA Buyers)
- Submit an application to the local government office or Land Registry where the property is located.
- Required documents typically include:
- Proof of payment for the administrative fee (HUF 50,000 or HUF 10,000 [EUR 124 or 25] for some residents)
- Valid passport or ID
- Signed preliminary agreement
- Up-to-date ownership certificate (not older than 21 days)
- Criminal record certificate
- Power of attorney if using a legal representative
- Processing time is generally 2–6 weeks
5. Final sale and purchase agreement
- Once the permit is granted, sign the final contract in the presence of your lawyer and the seller.
- Transfer the remaining funds to complete the purchase.
6. Register ownership of the property in Hungary
- Your lawyer submits the final documents to the Land Registry for official registration.
- Ownership is legally transferred only after registration is complete, which may take several weeks.
7. Pay taxes and fees
- Property transfer tax: 4% of the purchase price (with some exemptions for young buyers and new properties).
- Lawyer’s fees: Typically 0.5%–3% of the property value.
- Administrative fees: HUF 50,000 per property (or HUF 10,000 for certain residents).
- Other costs: Notary, registration, and potential realtor fees (total transaction costs are usually around 10% of the purchase price).
8. Obtain tax number and utilities
- Foreign buyers must obtain a Hungarian tax number for property-related financial transactions.
- Set up utility contracts and pay annual property taxes as required.
Buying property in Hungary: Special cases
- Golden Visa/Residency by investment: From January 2025, foreigners can obtain a 10-year Hungarian residence permit by purchasing residential property worth at least EUR 500,000, provided they hold the property for at least five years. This program covers the main applicant and family members.
- Restrictions: Foreigners cannot buy agricultural land or certain heritage assets.
Pitfalls and recommendations
- Legal representation: Foreigners cannot complete property transactions without a Hungarian lawyer.
- Delays: Ownership is only official after Land Registry registration, which can take weeks or months.
- Municipal and public interest: The local government can object if the purchase is deemed contrary to municipal or public interest, though this is rare.
- Heritage and renovation restrictions: Special rules apply to historical buildings, including renovation permits and preservation guidelines.
- Energy certificates: Sellers must provide an up-to-date energy performance certificate; otherwise, the deal may be challenged.
Summary table: Who needs a permit to buy property in Hungary?
| Buyer type | Permit needed? | Notes |
|---|---|---|
| Hungarian citizens | No | |
| EU/EEA/Swiss citizens | No | |
| Non-EU citizens (individual) | Yes | Permit from local government office/Land Registry required |
| Foreign-owned Hungarian Co. | No | Must register company in Hungary |
| Agricultural land buyers | Not allowed | Agricultural land is restricted to Hungarian citizens |
| Inheritance | No | No permit needed for inheriting property |
Final thoughts
Buying property in Hungary as a foreigner is entirely possible, but the process is more complex for non-EU/EEA nationals due to permit requirements. With careful planning, legal support, and attention to local regulations, both Hungarians abroad and foreign nationals can successfully invest in Hungarian real estate—whether for personal use, as an expat, or as part of a long-term investment or residency strategy.
Find our guides for expats in Hungary HERE!
Sources and more information: Immigrant Invest, Ecovis, JceConsultancy, hngary.com, e-ingatlanugyvedek.hu,
Read also:
- Handy guide to healthcare in Hungary for expats and foreigners
- Hundreds of Hungarian citizenships have been withdrawn: how and who can strip you from citizenship?
Featured image: depositphotos.com