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).