Hungary

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Check Eligibility
- Non-Residents: Foreigners, including non-EU nationals, are generally allowed to purchase property in Hungary. However, non-EU nationals may face restrictions, particularly when purchasing agricultural land or property in certain rural areas. In some cases, permission from the Ministry of Agriculture may be required.
- Financing: Foreign buyers can obtain financing from Hungarian banks, though they might be subject to stricter requirements. A larger down payment (typically around 30% or more) is generally needed.
Determine the Budget
- Budgeting: Consider the full costs of purchasing property, which include not only the purchase price but also additional expenses such as property transfer tax, notary fees, registration fees, and any renovation or maintenance costs.
- Mortgage: If you require a mortgage, Hungarian banks typically lend up to 60% to 70% of the property's value, meaning buyers must cover the remaining 30% to 40%.
Find a Property
- Online Search: Websites such as Ingatlan.com and Otthon Centrum provide comprehensive listings of properties for sale throughout Hungary. You can filter by location, price, and property type.
- Real Estate Agents: It is recommended to work with a local real estate agent (ingatlanügynök) who can help you navigate the market and handle negotiations with sellers.
View the Property
- Inspections: It is advisable to conduct a professional inspection to check for structural issues, plumbing, electrical systems, and other potential problems.
- Visiting the Property: If you are not in Hungary, you can appoint someone to visit the property on your behalf or arrange for a virtual tour.
Make an Offer
- Bidding: In Hungary, the process may involve negotiations with the seller, and it is common to make an offer close to the asking price. After agreeing on the terms, both parties sign a preliminary agreement (előzetes szerződés).
- Contract: A deposit (usually 10% of the purchase price) is typically paid upon signing the preliminary agreement.
Complete Legal Formalities
- Notary Involvement: A notary (jegyző) is required to finalize the sale in Hungary. The notary ensures that the property transaction complies with Hungarian law and that the transaction is legally binding.
- Property Transfer Tax: Hungary charges a property transfer tax (ingatlan vásárlási illeték), which typically ranges from 4% to 6% of the purchase price.
Register the Property
- Land Registry: The property must be registered with the Hungarian Land Registry (Földhivatal) to transfer ownership officially.
- Insurance: It is advisable to secure property insurance (lakásbiztosítás) to protect the home from damage, theft, or natural disasters.
Move In
- Once all the legal formalities are completed and the property is registered, you are ready to move into your new home.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: It is highly recommended to work with a Hungarian lawyer to guide you through the legal process, ensure that all paperwork is in order, and verify the property's legal status.
- Taxes and Fees: Be aware of the various taxes and fees associated with purchasing property, including the property transfer tax, notary fees, and registration costs.
ADDITIONAL NOTICES
- Property Transfer Tax: Hungary imposes a property transfer tax ranging from 4% to 6% of the property's purchase price.
- Notary Role: A notary (jegyző) must be involved in finalizing the property transaction. They verify that the sale complies with Hungarian law and ensure the legal transfer of ownership.
- Mortgage Financing: Foreign buyers may be able to obtain a mortgage, but Hungarian banks typically require a down payment of 30% to 40% of the property's value.

In Hungary, real estate taxes are regulated by the central government and local municipalities. The key types of taxes related to real estate in Hungary include:

Property Ownership Tax

Real Estate Tax: In Hungary, property tax is levied by local municipalities. The tax is calculated based on the property’s value, and the rates can vary depending on the municipality and the type of property.

  • The standard tax rate for residential properties is typically between 0.1% and 2% of the property’s value, depending on the municipality.
  • Commercial properties and other non-residential properties may be taxed at a higher rate.
  • The property tax is paid annually, and the property owner is responsible for payment.
Real Estate Transfer Tax

The real estate transfer tax is applied when a property changes ownership, such as during a sale or inheritance.

  • The standard transfer tax rate is 4% of the purchase price or the market value of the property, whichever is higher.
  • In the case of property transfers between family members, the tax rate may be lower, and some exemptions may apply.
  • The transfer tax is typically paid by the buyer at the time of purchase, and it must be paid within 30 days after the transaction.
Capital Gains Tax on Real Estate

Capital gains tax applies when a property is sold at a profit. However, exemptions may apply for primary residences under certain conditions.

  • The general capital gains tax rate is 15% on the profit made from the sale of the property (the difference between the sale price and purchase price).
  • If the property was owned for more than 5 years, the capital gains tax is reduced or may not apply in some cases.
  • If the property was used as a primary residence for at least 2 years, the sale may be exempt from capital gains tax.
Inheritance and Gift Tax

Hungary imposes inheritance and gift taxes on the transfer of property through inheritance or gifting.

  • For inheritance, the tax rate depends on the relationship between the deceased and the beneficiary. The rates range from 0% to 18% based on the value of the inherited property and the degree of relationship.
  • For gifts, the tax rate depends on the value of the gifted property and the relationship between the donor and the recipient, ranging from 18% to 30%.
  • If a property is inherited or gifted, any capital gains tax will apply if the property is later sold at a profit.
Municipal Tax

In addition to the property tax, some municipalities in Hungary may impose additional local taxes or charges for specific types of real estate, such as for the use of public infrastructure or services.

Income Tax on Rental Income

If rental income is generated from real estate, it is subject to both federal and local taxes.

  • Rental income is taxed as part of the overall personal income tax, with rates ranging from 15% to 35%, depending on the income level and the type of property.
  • Property owners can generally deduct related expenses, such as maintenance costs, property management fees, and mortgage interest, from their rental income to reduce taxable income.
Note: Tax rates and regulations can vary by municipality and individual circumstances. It is recommended to check with local authorities or consult a tax professional for accurate information.
Official
Hungary
CIOC
HUN
Subregion
Central Europe
Borders
AUT
HRV
ROU
SRB
SVK
SVN
UKR
Capital
Budapest
Area
93 028 km²
Population
9 750 000
Timezones
UTC+01:00
Phone
+36   
Currencies
Hungarian forint (HUF Ft)