Buying Property in Hungary as a Foreigner – Legal and Financial Guide

Hungary has become an increasingly attractive destination for foreign property buyers thanks to its affordable prices, stable economy, and high quality of life.

However, foreign citizens must follow certain legal and financial regulations when purchasing real estate.

Here’s an overview of what to consider when buying property in Hungary as a non-Hungarian citizen.

1. Purchase permit requirement

Non-EU citizens (e.g. UK, US, Swiss, Israeli, etc.) must obtain official approval from the local government office (County Government Office).
The process takes about 2–4 weeks and requires a Hungarian lawyer’s involvement.
EU citizens can buy property freely, except for agricultural land.

2. Legal representation and registration of ownership

All property purchases in Hungary must be made through a lawyer-certified contract.
The lawyer will:

verify the title deed and any encumbrances,
prepare and countersign the sale agreement,
submit the ownership registration to the Land Registry.

The registration process usually takes around 30 days.

3. Taxes and duties

The buyer must pay a 4% property transfer tax on the purchase price.
Certain exemptions apply for first-time buyers or newly built properties.
When selling the property later, a 15% capital gains tax applies to profits — but after 5 years of ownership, no tax is payable.

4. Financial considerations and bank practices

Several Hungarian banks offer mortgage loans for foreigners, though typically with higher down payment requirements (30–40%).
Transactions can be conducted in EUR or HUF via a lawyer-managed escrow account.

5. Purpose and property types

Foreigners may purchase:

residential properties (apartments, houses),
commercial properties (offices, retail units).
Agricultural land or farmland generally requires special permission or legal status.

Summary

Buying property in Hungary as a foreigner is a clear and transparent legal process, provided that an experienced lawyer and trusted real estate agent are involved.
The keys to success are legal safety, due diligence, and financial planning.
Hungary offers a stable and predictable investment environment for international buyers.