Buying Property in Hungary: The Ultimate Guide by Experts

Buying property in Hungary is one of the best investment options for obtaining residency in the country. Additionally, it offers fantastic returns on investment.

In this guide you will learn about:

• Who can buy property in Hungary
• Buying property in Hungary as a foreigner
• Steps for buying property in Hungary as a foreigner
• Best places to buy property in Hungary
• Hungary property market compared to other EU countries
• Hungary property tax
• Advantages of buying a property in Hungary
• Pitfalls of buying property in Hungary

Who can buy property in Hungary?

Anyone can buy property in Hungary. But there are some different requirements depending on nationality. Let’s take a closer look:

EU citizens: Citizens of the European Union are not required to obtain a permit to purchase property in Hungary. Generally, a buying contract is drawn up by a lawyer. The buyer and the seller will sign the contract before the purchase.

Non-EU-citizens: Foreign nationals that are not EU citizens need permission from the local Hungarian Land Registry of the district where the property is. A lawyer will obtain this approval, and it generally takes around four weeks.

Buying Property in Hungary as a Foreigner

There are a few things to be aware of when buying property in Hungary as a foreigner. Foreign nationals are required to obtain permission from the Hungarian Land Registry before they can purchase real estate.

Foreign nationals are also required to hire a Hungarian lawyer to oversee the property contracts. The fees are generally around 1%-1.5% of the property value.

If foreign nationals are looking for a way to obtain residency in Hungary the Hungary Golden Visa offers residency by investment. Here, foreign nationals can purchase a residential property of at least €500,000 in exchange for residency. The property must be held for at least five years to maintain residency.

What are the steps for buying property in Hungary as a foreigner?

Here is a step-by-step process to buying a property in Hungary as a foreigner:

Step One: Finding the right property

Before you do anything, researching the type of property you want in the area you like is essential. The property market in Hungary varies significantly with a range of property options, including apartments, townhouses, and freestanding residential houses.

Working with a real estate agent in Hungary can help a lot to find the ideal property for your needs. Additionally, an estate agent can help you better understand the Hungarian real estate market and what you should look for in terms of investment potential.

Step two: Complete all legal due diligence

One of the most important steps to purchasing a property in Hungary is ensuring that the property is legally sound. This means investigating whether there is outstanding debt or disputes surrounding the property.

If you are a foreign national, this is also the ideal time to understand what is legally required of you to obtain a property in Hungary.

Step three: Draft the purchase agreement

At this stage your lawyer will draft a purchase agreement contract. Retaining a lawyer for the purchase agreement is essential and cannot be omitted. All property purchases need to comply with Hungarian law.

Step four: Register with Land Registry

Once the contract has been agreed to and signed by all parties, you must register with the Land Registry. This step is vital to the purchasing process, granting you ownership rights of the property.

Step five: Make the property payment

Once you have permission to purchase it you can pay for the property.

Step six: Obtain property ownership certificate

To finalize the purchasing process, you need to obtain the ownership certificate. Your lawyer can pick this up at the Land Registry.

Step seven: Pay property taxes

The new property owner is required to pay stamp duty, which is 4% of the purchase price. This must be done within 90 days of purchasing the property.

Best Place to Buy Property in Hungary: The Hungary Real Estate Market

The Hungary property market has seen a significant boom in the past few years, with more foreign nationals looking to make this EU country their new home. Here are some of the most popular and desirable places to buy property in Hungary:

Budapest

Budapest is the highest in demand area in Hungary. Known for its strong expat community, growing tourism, and in demand rentals, buying property in Budapest is a great investment option.

Living in Budapest brings with it a high standard of living, a chance to explore the incredible historical architecture, and luxury properties. Additionally, the lower cost of living compared with other large cities in the EU make it an attractive investment.

Property prices in Budapest

Debrecen

Debrecen is the second largest city in Hungary after Budapest. This well-known city is known for its fantastic university, offering great opportunities for purchasing rental properties in the city center.

The city of Debrecen offers a more laid-back feel to Budapest, while still offering a high quality of life. The property prices in Debrecen are also lower.

Property prices in Debrecen

Lake Balaton

Lake Balaton is known as Hungary’s “inland sea.” It is a premier destination for property investment. The stunning natural beauty and vibrant tourist scene, make this an excellent opportunity for vacation rental properties in Hungary.

Compared to Budapest, Lake Balaton offers a relaxed, resort-like atmosphere, ideal for those seeking tranquility. Property prices around the lake are generally more affordable than in Budapest, with strong potential for value appreciation.

Popular areas like Siófok and Balatonfüred cater to diverse tastes, from lively nightlife to family-friendly retreats, ensuring consistent rental yields and potential for future purchase.

Property prices in Lake Balaton

How does the property market in Hungary compare to other EU countries?

Looking at the difference between the Hungary property market compared to other EU countries can help you understand the investment opportunities and how they differ to other countries:

Hungary

The Hungary property market has seen some significant increases in recent years, with residential properties holding the largest market share of 1.19 trillion in 2024. The residential property market in Hungary is predicted to grow at an annual rate of 5.92% (CAGR 2024-2029). This would lead to a total market volume of $1.96 trillion by 2029.

Portugal

The Portugal real estate market has also seen dramatic growth and the predictions are following suit. The residential property market in Portugal is estimated to grow by 4.97% between 2024-2029, with the market growing from 1.33 trillion in 2024 to $2.09 trillion in 2029.

Spain

Spain has a booming real estate market, with the residential real estate sector dominating the market at 5.69 trillion in 2024. Projections are even better, showing an annual growth rate of 2.77% between 2024-2029, taking the market to a staggering $8.22 trillion in 2029.

Greece

Greece is another popular country for real estate investment and for good reason. The residential real estate market in Greece is set to hit $1.28 trillion in 2024. Predictions show an annual growth rate of 3.53%annual growth rate of 3.53% between 2024-2029, with the market reaching $1.82 trillion in 2029.

source: statista.com

Buying Property in Hungary Tax

The property purchase expenses aren’t the only financial consideration when purchasing property in Hungary. Here are the taxes for purchasing a property in Hungary:

• Property registration: Registering your property at the Land Registry will cost about 10,600 HUF (€26.04/$27.53)
• Transfer tax: The property transfer tax is generally about 4% for property purchases.
• Notary fees: The legal fees for real estate transactions are about 0.5%-1% of the purchase price.

Important to note: If you choose to take out a mortgage for the property, there may be additional costs and fees incurred. Additionally, different taxes may apply. For example, corporate income tax under certain circumstances.

Advantages of Buying a Property in Hungary

There are a range of advantages of buying property in Hungary:

Pitfalls of Buying Property in Hungary

While there are many benefits to buying property in Hungary, it’s always good to be aware of the disadvantages:

Is Hungary a good place to buy property?

Overall, Hungary is a great place to buy property. Whether you’re looking to make a return on your investment or want to invest in exchange for a residence permit, investing in the Hungary property market in 2024 is a fantastic option.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions About Buying Property in Hungary

Can a foreigner buy a house in Hungary?

Absolutely! Foreign investors are encouraged to buy property in Hungary. There are some extra considerations, including hiring a lawyer for the process, but overall, purchasing property in Hungary is a straightforward process.

What are the steps for buying property in Hungary as a foreigner?

Purchasing a property in Hungary involves several key steps, including:

• Finding the right property.
• Completing legal checks.
• Getting a lawyer to draft the purchase agreement.
• Registering the property with the Land Registry.
• Making the payment for the property.
• Obtaining the ownership certificate.
• Paying property taxes.

What documents are required for buying a house in Hungary from UK?

The documents needed for buying a house in Hungary as a foreign national include a valid passport, purchase permission, a signed purchase agreement, and proof of funds. There may be additional document requirements depending on your personal circumstances.

What are the common pitfalls when buying property in Hungary?

Common pitfalls for purchasing property in Hungary include hiring a lawyer, obtaining purchase permission, and an energy performance certificate.

How does the property market in Hungary compare to other EU countries?

Hungary’s property market has seen strong growth, with the residential sector projected to grow at an annual rate of 5.92% (2024–2029), outpacing markets like Portugal (4.97%), Spain (2.77%), and Greece (3.53%). By 2029, Hungary’s residential market is expected to reach $1.96 trillion, starting from $1.19 trillion in 2024.

Are there any restrictions on foreigners buying property in Hungary?

Yes, foreign nationals cannot purchase farmland or heritage assets in Hungary.

What are the tax implications for buying property in Hungary as a foreigner?

Registering a property in Hungary costs approximately 10,600 HUF (€26/$28), while the transfer tax is typically 4% of the property’s market value. Legal fees, including notary services, range from 0.5% to 1% of the purchase price.

How can UK citizens finance the purchase of property in Hungary?

The most popular option for UK citizens looking to finance a property purchase in Hungary is by obtaining a mortgage. You can do this through Hungarian banks or taking a personal loan through a UK bank. Both require proof of financial eligibility.

What are the best regions or cities for purchasing real estate in Hungary?

Some of the most popular places to buy property in Hungary include Budapest, Debrecen, and Lake Balaton.