Hungary Real Estate: A Guide to Buying or Renting Property

Hungary Real Estate: Hungary is an attractive destination for expatriates, investors, and retirees due to its affordable property prices, strong rental market, and central European location. Whether you are looking to rent or buy property, understanding the legal framework and market conditions is essential.

This guide provides a comprehensive overview of the process, requirements, and key considerations for foreigners interested in real estate in Hungary.

Renting Property in Hungary

Finding a Rental Property

Foreigners can easily rent property in Hungary without restrictions. The most common ways to find rental properties include:

• Real estate websites: Ingatlan.com, Alberlet.hu, Otthonterkep.hu
• Real estate agencies: Working with an agent can be helpful, especially for non-Hungarian speakers.
• Social media and expat groups: Facebook groups and expat forums often list rental properties.

Rental Agreements & Requirements

Rental contracts in Hungary are typically for one year, with the option to renew. Important factors to consider include:

• Security deposit: Usually 1-3 months’ rent.
• Utilities: Often not included in the rent and must be paid separately.
• Documentation: A passport and sometimes proof of income or a local guarantor may be required.
• Rent payments: Typically paid monthly via bank transfer.

Hungary Real Estate: Average Rental Prices

Rental costs vary by location, with Budapest being the most expensive city.

Buying Property in Hungary

Can Foreigners Buy Property?

Yes, foreigners can buy property in Hungary. However, non-EU citizens must apply for a purchase permit from the local government, which typically takes 1-3 months to process.

Steps to Buying Property

1. Find a Property
   
   • Use real estate websites or agencies to explore listings.
   • Work with a local real estate agent if unfamiliar with the market.
2. Obtain a Purchase Permit (Non-EU Buyers)
   
   • Submit an application to the local municipality.
   • Pay the application fee (usually around €200).
3. Due Diligence & Legal Check
   
   • Verify the property title through the Hungarian Land Registry.
   • Ensure there are no outstanding debts or legal disputes on the property.
4. Sign a Sales Contract
   
   • This must be drafted and notarized by a Hungarian lawyer.
   • A deposit of 10-20% is typically required.
5. Register Ownership with the Land Registry
   
   • The final step, which takes up to 60 days.

Costs of Buying Property

In addition to the property price, buyers should budget for extra costs:

• Real estate agent fee: 3-5% of the purchase price
• Legal fees: €1,000 – €3,000
• Notary fees: €200 – €800
• Property registration fee: Around €50 – €100
• Stamp duty (property transfer tax): 4% of the property value

Average Property Prices (2024)

Financing a Property Purchase

Foreigners can apply for a mortgage in Hungary, but eligibility depends on residency status and financial background.

Mortgage Requirements

• Down payment: Usually 30-40% of the property value.
• Loan term: Up to 25 years.
• Interest rates: Typically 5-8% (subject to change).
• Proof of income: Employment contract or business income proof.

Some banks require permanent residence status for mortgage approval, but foreigners with a strong financial background can secure a loan.

Key Considerations for Foreign Buyers

• Property market trends: Prices in Budapest are rising, making it a good investment location.
• Legal support: Hiring a lawyer ensures a smooth transaction and protects against fraud.
• Taxes & fees: Factor in registration, agent fees, and yearly property tax.
• Residency status: Owning property does not automatically grant Hungarian residency.

Frequently Asked Questions

Can I buy property in Hungary as a non-EU citizen?

Yes, but you must apply for a purchase permit from the local government.

Do I need a lawyer when buying property?

Yes, Hungarian law requires a lawyer to draft and oversee property transactions.

Can I rent out my property as a foreigner?

Yes, but rental income is subject to 15% income tax (deductions may apply).

What is the current mortgage interest rate?

As of 2024, mortgage rates in Hungary range from 5% to 8%, depending on the lender and borrower’s profile.

Does owning property qualify me for residency?

No, property ownership alone does not grant residency, but it may support a visa or residency application.

Conclusion

Hungary is an attractive location for real estate investment, offering a stable market, relatively low prices, and no restrictions on foreign buyers apart from the purchase permit requirement. Whether renting or buying, working with real estate professionals and conducting thorough due diligence are crucial to ensuring a successful transaction.

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