145 sqm
€200.000
6,5%+$250.000
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Real Estate Investment in
Hungary
Investing in real estate in Hungary provides stability, strong potential for property value appreciation, and attractive economic returns. With a clear legal framework, appealing financing options, and growing rental demand in cities like Budapest, Debrecen, and along the scenic Danube River, Hungary offers excellent opportunities for investors. The country’s strategic location in Central Europe, coupled with its moderate climate and diverse property options, ensures long-term growth and profitability. Foreign buyers can choose from urban apartments, countryside homes, or commercial properties. Additionally, Hungary’s Residency by Investment program enhances its appeal, offering residency through property investments, making it an ideal destination for international investors seeking both financial and lifestyle benefits.
Real Estate Investment & Costs
Transfer Tax (Stamp Duty)
4%
Registration Fees
€450
Legal Fees & Notary Fees
- Legal Fees: 1%-1,5%
- Notary Fees: €750
VAT (if applicable)
27%
Orhun Doğanay
International Property Investment Expert
House Price Index in Hungary
Hungary
Orhun Doğanay
International Property Investment Expert
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Frequently Asked Questions
Can foreigners buy property in Hungary?
Yes, foreigners can buy property in Hungary, but they need to obtain a permit from the local municipality. This process is straightforward and usually takes a few weeks. Citizens of the European Union (EU) do not require this permit.
What are the taxes and fees associated with buying property in Hungary?
The main cost is a 4% property transfer tax based on the purchase price. Additionally, buyers must pay legal fees (1-2% of the purchase price) and a registration fee of around €100-150. If purchasing through a real estate agent, a 3-5% commission may apply.
Do I need a lawyer to buy property in Hungary?
Yes, a lawyer is required for all property transactions in Hungary. They will handle the legal documents, verify the property’s title, and register the property in the Land Registry. Legal fees generally range from 1% to 2% of the property value.
Can foreigners get a mortgage in Hungary?
Yes, foreigners can get a mortgage from Hungarian banks, but the deposit required is typically 30-40% of the property value. Interest rates vary depending on the bank, and additional mortgage arrangement fees may apply.
How long does the property purchase process take in Hungary?
The process usually takes 4-8 weeks, depending on factors like legal checks, obtaining permits (if applicable), and registration at the Land Registry.
What are the most popular areas for foreigners to buy property in Hungary?
Popular areas include Budapest for its vibrant city life, Lake Balaton for vacation homes, and Debrecen for a more relaxed lifestyle. Budapest is particularly attractive to investors due to its high rental demand.
What are the ongoing costs after buying property in Hungary?
After purchasing, owners are liable for annual property tax, which varies by municipality and property size but is generally low compared to other EU countries. Utility costs, maintenance fees (if applicable), and insurance are also typical ongoing costs.
Is it possible to rent out my property in Hungary?
Yes, renting out property is common, especially in Budapest and tourist areas like Lake Balaton. Hungary’s strong rental market, particularly for short-term rentals, makes it a good option for generating rental income.
What documents are required to buy property in Hungary?
Foreign buyers need a valid passport, a Hungarian tax number, and, if applicable, a permit to buy property. Additional documents like bank statements may be required if applying for a mortgage.
Does Hungary offer residency through property investment?
No, Hungary does not have a specific residency-by-investment program for real estate. However, non-EU citizens can apply for residency through other investment routes or standard visa programs if they meet the necessary criteria.