Real estate in Hungary is becoming more expensive but still remains one of the most affordable in comparison with other EU countries. From our guide, you will learn how to buy real estate in Hungary in steps and how much it approximately costs in this country; under what conditions a foreigner can get a mortgage to buy; and what additional costs should be considered.

Foreigners can buy property in Hungary, except for agricultural land and monuments. But you can only do this if you have a country's residence permit. Also, to make such a purchase, one must necessarily get permission from the Land Committee with the assistance of lawyers accompanying the transaction. But do not be alarmed: it is more of a formal step, as they can refuse only because of the presence of a criminal record in Hungary.

Who does not need to obtain a permit? Citizens of Hungary, citizens of the European Union countries, as well as Norway, Liechtenstein, Iceland, and Switzerland, and citizens of any country to which the property is passed by inheritance.

Also, such permission is not required if the purchase is made in the name of a legal entity.

What benefits can a Hungarian property buyer expect? 

When buying real estate in Hungary, you can count on a residence permit in the country. To do this, foreigners need to buy a home for €155,000 in Budapest with a living area per family member of at least 6 square meters.

A residence permit is issued to the main applicant for up to 5 years and to family members for 3 years. The status can be extended.

Buying property in Hungary by the steps

  1. Contact a lawyer. 
    As it turns out, without this step, buying real estate in Hungary for foreigners will not work. Only lawyers have the right to register the contract of sale, obtain a purchase permit, and obtain the property owner's passport.
  2. Select and reserve the object. 
    You can choose a property in Hungary in the catalig of REALTING. And viewing can be arranged in person or remotely. Then you need to send a request to the seller and pay 1% of the total amount as a deposit — by taking this action, you book the desired object.
  3. Verify the object. 
    A lawyer is responsible for due diligence—he checks the title as well as the presence of debts and other encumbrances.
  4. Conclude a preliminary contract and make a prepayment. 
    The lawyer draws up a preliminary contract of sale in Hungarian (an interpreter may be involved in the process if the parties wish). This document contains all the details of the transaction: the technical characteristics of the object, the amount, the address, the responsibilities of the parties, and so on. When signing, the buyer makes a prepayment of 10-15% of the value of the object (in case of refusal by the buyer of the transaction, this amount is not returned to him).
  5. Get permission to buy. 
    Next, lawyers make a request to the Land Committee of Hungary for permission to buy. During this period, the agency vetoes any operation by the owner of the selected property.
  6. Pay for the property and close the deal. 
    After receiving the permit, you need to conclude the main contract of sale and purchase. Then the buyer transfers the remaining amount to the seller (both cash and non-cash payments are fine).
  7. Register ownership. 
    After the transaction is successfully completed, the lawyer notifies the land registry. The point in this process is the change of the owner's name on the property card.

Associated costs when buying real estate in Hungary

When buying property in Hungary, you should expect to incur additional costs, which amount to about 10% of the value of the object. Here are the items they consist of:

  • Property transfer tax. It is equal to 4% of the value of the object if its price does not exceed €2.6 million, and 2% if the property is more expensive. This tax is paid within 90 days after the deal.
  • VAT for buyers of new construction. It amounts to 27% and is usually already included in the price of the object.
  • Administrative fees: for a permit to purchase a property—from €170 to €200; for a veto on real estate transactions—€60; €3O is an extract from the cadastral registry; €22—passport of the homeowner.
  • Fees for lawyers, realtors, and notaries usually do not exceed 5% of the value of the object.

The average price of real estate in Hungary

You can buy a 90 sq.m. apartment in Hungary between €185,000-€255,000.

The price to rent a one-bedroom apartment in Hungary is about €320-420 monthly, three-bedroom—€550-730.

Utility bills in Hungary at an average of €137 a month (plus €13 for internet).

Buying a home in Hungary with a mortgage

For foreigners who want to take out a mortgage to buy real estate in Hungary, it is important to know that they have this possibility too, only if they have a residence permit of the country.

The interest rate currently ranges from 18-20%.

On our website, you can find the right real estate agency in Hungary.