How can I buy property in Hungary?

Foreign nationals can buy real property (residential, industrial or commercial) in Hungary under different conditions.

The acquisition of real estate by foreigners is regulated by a 1996 government decree requiring foreign private individuals to obtain a permit in order to buy property in Hungary, unless the acquisition is by inheritance or is subject to certain conditions.

Since May 1, 2004, citizens from the European Union (EU), European Economic Area (EEA) and Switzerland who have been continuously living in Hungary for at least four years can purchase residential property in Hungary without a permit. Otherwise, special permission is needed even for EU nationals.

Non-EU citizens and EU citizens living in Hungary for less than 4 years have to obtain a permit to buy a property.

To obtain a permit, an application must be submitted to the relevant metropolitan or county administration office, which grants or rejects the request based on whether it interferes with any “municipal or public interests.” Duty of Ft 50,000 (or Ft 10,000 if the applicant holds a permanent residence permit and has a citizenship petition pending) is payable.

The application must include the buyer’s certificate of nationality (notarized copy of passport) and two official copies of the purchase contract or certificate proving the sale.

During the course of the application, the administrative office requests the opinion of the mayor of the local government competent at the location of the real estate if the purchase does not interfere with municipal interests. The mayor has to reply to the request within 15 days.

Many foreign citizens who want to avoid the lengthy process of obtaining a permit or wish to buy more than one property (foreign ownership of real estate is restricted to one property per non-resident buyer) set up a company locally in Hungary.

As legal entities, businesses in Hungary may buy property without any form of permit. This can be convenient for administrative purposes as well as from a cost standpoint as almost all expenses related to the purchase can be written off on the company accounts.