
Buying or renting?
REAL ESTATE IN HUNGARY
PURCHASING REAL ESTATE IN HUNGARY
EU-citizens as well as third-country nationals may purchase real estate property in Hungary. To purchase a property you must sign a purchase agreement before a licensed attorney, so please don't hesitate to contact us, if you are buying or selling.
Buying real estate property in Hungary
standard procedure
1Purchase offer and negotiations
Legal representation in transfers of property title is compulsory in Hungary. Once you picked out a property in Hungary, commission a lawyer to legally represent you in the contract negotiations!
To avoid any legal confusion in the purchase process, do not sign anything without consulting with us beforehand!
2Verification of the property and the parties
As part of the compulsory legal representation, as your lawyers, we must verify the personal information of the contractual parties based on the Hungarian Population Register, as well as the property information based on the Hungarian Land Register.
Once data is verified, we may move on to the next phase!
3Contract drafting
Having consulted all parties involved, as your lawyers we will draw up a draft contract, circulate it for review among the relevant parties, and finalise it in full agreement. Payment schedule, relocation arrangements and timelines, taxes and levies due - we will cover and defines all aspects in the contract to minimize any legal risks.
4Contract signature and deposit payment.
Once the purchase agreement is ready to be signed, all parties must sign the contract before the drafting lawyer, who will countersign the agreement certifying that the parties have signed the contract in full agreement and of their own free will. Upon signature, it is typical in Hungary to pay a 10% deposit but all payments are agreed in the contract's payment schedule.
5Registration of Buyer's option
Once the contract is signed, the contract is submitted to the Hungarian Land Registry. If the payment is not made in one lump sum, or a purchase permit is required, or there are any other factors delaying the full execution of the contract, we will submit a request to register the buyer's option in the Hungarian Land Registry to protect the parties' contractual agreement.
6Obtaining a property purchase permit
Third country nationals must obtain a permission to purchase property in Hungary from the local government. Additionally, according to a new law, Hungarian and EU-nationals may also be required to obtain the local government's permission depending on the city. As your lawyers, we will inform you of the permission requirements!
7Payment of purchase price
Once all legal conditions to acquire the title of the property have been fulfilled, the remaining amount of the purchase price may be paid. Once the payments have been made, please let us know, so we can move on to the next phase.
8Property handover
Once the purchase price has been paid in full, the property must be handed over (physically) to the buyer.
While the presence of a lawyer is not required, signing minutes of handover is highly recommended. We will provide you with a form for the property handover.
9Title transfer registration
Once the purchase price has been paid in full, all necessary purchase permits have been obtained, and the property has been handed over, the transfer of the title may be registered in the Hungarian Land Register.
ASSOCIATED COSTS OF BUYING REAL ESTATE IN HUNGARY
For an exact calculation of the costs and fees associated with purchasing a property in Hungary,
please book an appointment.
Land registry fee
HUF 10,600 per property per request
Purchase permit fee
HUF 50,000 per property per person
Attorney's fee
1% of the purchase price (but at least HUF 100,000).
Taxes
If you are a tax resident in Hungary, you may be obliged to pay a transfer levy of 4% as a buyer, or personal income tax (15%) as the seller.
First home Owner's loan programme
Read our guide to find out if you are eligible for the fixed-rate 3% interest rate bank loan.
renting real estate
Whether you want to rent out your own property, or you would like to rent a property, having a legally safe and sound rental agreement is key to peaceful life. Contact us for a contract that protects your rights and peaceful household.
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Do you need a lawyer for a legal consultation or to draft your contract?
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