I'd like to rent out my apartment to a foreigner – what should I pay attention to?

The residence of foreigners in Hungary is subject to registration for EU citizens (if their stay exceeds 90 days), while the residence of non-EU citizens (third-country nationals) in Hungary requires a permit.

Therefore, the question often arises: what is the difference between the landlord renting the apartment to a Hungarian or EU citizen versus a third-country national?

It must be stated upfront that all foreigners have the same rights and obligations under the provisions of the Housing Act and the Civil Code: a written contract must also be concluded with foreigners, foreigners are also entitled to get their deposit back, the owner must also pay personal income tax on the rent paid by foreigners, and foreigners can also file claims before a court.

Let's start with third-country nationals

Since the residence of third-country nationals in Hungary is tied to a permit, it is advisable to verify at the time of signing the contract whether the foreign citizen's residence permit or residence card is valid, and until when. To be safe, it may be worth concluding the rental contract for a fixed term, until the expiry of the residence permit. Alternatively, it may be worth stipulating in the rental contract that if the tenant's residence permit expires and the tenant does not initiate its extension within the statutory deadline, the owner may terminate the contract with immediate effect.

If the extension of the residence permit is in progress, the plastic card has indeed expired, but during the procedure the foreigner receives a so-called temporary residence certificate — a colored, paper-based residence permit that entitles them to lawful residence in Hungary.

If the residence permit expires and the foreigner leaves Hungary, the parties are not obliged to terminate the rental contract either, because legally it is possible to use an apartment for storing personal belongings, or for the times when the person travels to Hungary (instead of booking a hotel).

The rental contract is worth drafting in two languages — Hungarian and a language the foreigner understands (e.g., English) — so that the parties can prevent later misunderstandings.

It is also important to note that, similarly to Hungarian citizens, foreigners are also obliged to report to the authorities where they live in Hungary. Foreigners (third-country nationals) must report their place of accommodation in Hungary to the immigration authority, i.e., the National Directorate-General for Aliens Policing (OIF). The foreigner must report this using the accommodation report form prescribed by the OIF, within 3 days of moving in. The owner must also sign the accommodation report form. With this, the property owner confirms that they have consented to the registration of the official place of accommodation. The rental contract must also be attached to the accommodation report.

Foreigners with permanent residence status have an address card, just like Hungarian citizens. The process for registering an address is the same: at the government office, by presenting the rental contract. The address can also be changed online through the Client Gate (Ügyfélkapu) by uploading the rental contract or the owner's consent.

Finally, it is also important to note that the immigration authority is entitled to verify the report, so it may conduct spot checks — following the registration, or at any time during the foreigner's stay in Hungary — by visiting the reported address and checking whether the foreigner actually lives there on a regular basis. The property owner does not need to be present at that time. If the foreign tenant is not found at home, they will be notified of the visit and the check will be repeated at a later date.

So what about EU citizens?

If an EU citizen stays in Hungary for more than 90 days, they are obliged to report their residence in Hungary to the immigration authority (National Directorate-General for Aliens Policing – OIF). For this, they will also need a Hungarian residential or accommodation address.

EU citizens have an address card, just like Hungarian citizens. The process for registering an address is the same: at the government office, by presenting the rental contract. The address can also be changed online through the Client Gate (Ügyfélkapu) by uploading the rental contract or the owner's consent.

If you have any questions about renting out an apartment or about foreigners' residence in Hungary, we are happy to be at your service.