It’s worth buying property in Hungary: you may even become an EU citizen!

Investing your money in property in Hungary is a safe way to protect the value of your money while it has some additional benefits. For example, property prices in the country increase with the rental prices and there is a housing crisis mainly in Budapest. Hungarian property is cheaper than in a lot of other EU member states. And finally, if you buy Hungarian real estate, you may become eligible to get a Hungary Golden Visa, which enables you to stay in Hungary and move in the European Union freely for 10+10 years.

Property in Hungary is relatively cheap generating high income

The Edinburgh Reporter collected several benefits of buying an apartment or house in Hungary. What is bad news for Hungarians is good news for foreign investors. Hungarian average wages make buying property more and more challenging for employees, especially young people. As a result, many leave Hungary to work in the West and collect enough money to get an apartment here.

From the perspective of those living in Western European countries, however, property in Hungary is not that expensive. Real estate prices in Milan are 37% higher, but Berlin (26%) and Prague (25%) also precede our capital. Meanwhile, rental prices in Hungary grew by 165% between 2013 and 2023 and the trend continues. As a result, rental yields are higher (5.09%) than the EU average. Finally, if you buy real estate in Hungary for more than EUR 500,000, you and your family (spouses, children under 18, and later, dependent parents) can get a Hungary Golden Visa enabling you to live here and travel in the European Union for 10+10 years. That may lead to citizenship in the EU.

Source: depositphotos.com

Prices and taxes

Prices vary between regions, cities and even inside Budapest. One sqm in the most expensive districts (1st, 2nd, 5th, 12th) can reach EUR 5,500. But the average in Budapest is “only” EUR 2,360. In Debrecen, Győr or Hévíz near Lake Balaton, the investment amount you need is even lower.

Regarding resale property in Hungary, the price is just EUR 2,200 in Budapest.

Of course, you may pay approximately 10% more because you must pay the stamp duty (4% of the price if below EUR 2.6 million, 2% if above) and some other administrative fees listed in the article.

The downtown of Budapest. One of the best places to invest your money. Photo: Daily News Hungary – Alpár Kató

If you are under 35, you may get a 2% reduced tax rate but only to the portion over HUF 15 million (EUR 37,400). Finding a house or apartment below HUF 15 million is hard in Hungary but not impossible in the rural areas, especially in small settlements.

Getting a Hungary Golden Visa simplified

Foreigners can buy property in Hungary except for agricultural lands and heritage assets. However, you must obtain permission from the Land Registry in the district where the property is located. You should know that some local governments do not grant that to foreigners.

However, if you are a Hungarian citizen, a citizen of EU countries, Norway, Liechtenstein, Iceland, Switzerland, or a foreign citizen inheriting property, you do not need such permission.

The Liberty Bridge, the Fővám Square and the Kálvin Square in Budapest. Photo: FB/ZoltanGaborPhotography

Finally, as a buyer, you must obtain an up-to-date energy performance certificate for the property.

An additional tip is to hire a Hungarian legal company to navigate you through the process.

If you only want a golden visa but do not have EUR 500,000, you can purchase real estate funds for EUR 250,000. If you have more money and do not want to buy property, you may donate EUR 1 million to an approved institution of higher education in Hungary.

Read also:

• Here is when the new Hungarian Golden Visa scheme starts: will Hungarian and Chinese businessmen supervise it?
• Security risk for Schengen area? Hungary’s National Card Programme Under Fire but foreign minister dismisses concerns

Featured image: depositphotos.com