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Buying property in Hungary

Special conditions apply to foreigners



The acquisition of Hungarian property by foreigners is an important market, but it is strictly regulated. Any sale or purchase of a property by a foreign citizen requires a permit from the Hungarian State Authorities.

Buying property as a foreigner in Hungary is difficult or even impossible. Only foreigners who have already been living in Hungary for several years are subject to separate treatment. In any case, every purchase and sale of a property by a foreigner requires a permit from the Hungarian state.

Purchase by EU nationals

Since joining the EU in 2004, other EU citizens are no longer considered foreigners; therefore the purchase of property is legally possible. Nevertheless, Hungary is being granted a transition period to fully implement EU law during which special conditions are applied to property purchase by an EU national. These are:

  • Reciprocity: Hungarians have to be given the right to purchase property in the home country of the buyer.
  • A permit that authorises the purchase has to be issued by the Administrative Authority Office (Közigazgatási Hivatal)

Purchase Permit

According to the law, a permit for the sale or purchase of property by a foreign citizen can be issued when:

  • The transaction is not against the public interest
  • It involves the foreigner selling one property in order to buy another (inland) property
  • EU citizens can buy a property with the same conditions as a Hungarian. If it is a secondary place of living then the foreign citizen has to have been a resident in Hungary for at least 5 years
  • The property acquisition is needed for the entrepreneur's business

The application form must be submitted to the Administrative Authority Office (Közigazgatási Hivatal) and the following documents must be presented:

  • Completed application form.
  • Certified copy of your passport (you will need to get a notary public in Hungary to make this certification) and the passport itself.
  • Sale or purchase contract.
  • Original copy of the title deeds (tulajdoni lap) issued less than 30 days before the date of application.
  • The official fees for the processing of these applications may be around 50,000 HUF. This does not include fees you may have to pay to a lawyer to handle the application or notary fees for the execution or certification of documentation.

You will need to allow up to 30 days for each of these offices to process the application and issue a permit. In advance of completing a property purchase the seller must be informed of the fact that this process will need to take place. The Administrative Authority has the right to reject the application if the home country of the foreign citizen does not guarantee an equal treatment of Hungarian citizens.

Exemptions for nationals from the EU, EEA and Switzerland

Since May 1 2004, citizens from the European Union (EU), European Economic Area (EEA) and Switzerland who have been living in Hungary for at least 4 years may purchase residential property without the permission of the Administrative Authority.

Loopholes

Warning: This is not legal advice and we recommend you do not take any decisions without consulting a qualified local lawyer.

There are a couple of methods that can be legally used to avoid restrictions on acquiring property in Hungary:

  • The permit process can be avoided if the foreigner establishes a company in Hungary. The company can then purchase property in its name. As a Hungarian legal entity the company passes as a national company, and can purchase properties under the same conditions as other Hungarian enterprises.
  • The foreigner does not buy ownership but beneficial enjoyment. This way the property has an owner, but the foreigner, as the owner of the beneficial enjoyment, can practice the same rights over the property – only that it is not necessary to procure a permit.

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