Acquisition of real estate by foreigners in Hungary
Foreigner legal and natural person (excluding agricultural and forestry lands) can acquire real estate
ownership through permission from the government departments competent in the classification of
the location of the property. No permission is needed by the government departments if they are:
- Citizens of the EU, legal person or organisations without legal personality
- Citizens of countries that are part of the Agreement on the European Economic Arena -EEA
(Norway, Liechtenstein, Iceland), organisations without legal personality or legal person
- Citizens of Switzerland
- Dual citizens (given that one of the citizenships is Hungarian or of a member state) or Hungarian
citizens living abroad
- in the case of inheritance
- refugees or persons with protected status.
Before purchasing real estate make sure to contemplate the title deeds, most importantly regarding
the encumbrances. Examining the copy of the cadastral map is advisable, to verify that all the
buildings and outbuildings are registered accurately. What is more, we recommend inspecting the
utility map (especially undeveloped land / construction-free spaces).
The energy performance certificate is the responsibility of the seller. Banks often require said
certificates for loans. No energy performance certificate is needed (most common cases) for the
detached residential buildings below 50 square meters, and for the buildings intended for less than 4
months of utilisation.
If you are considering borrowing, it is crucial to contemplate the content and formal requirements
for the purchase contract determined by the financial institution in question, to avoid the need for
revisions and amendments later.
Assess the purchase tax! Generally, it is four percent of the market value of the property. Up until a
billion forints, it is four percent, for market value above a billion, it is two percent, but 200 million
forints at most per real estate.
+1 Entrust an adequate (multilingual) lawyer for the writing of the purchase contract, as it is essential
to understand what is included before signing.
Our agency is ready to be of service to You in the transaction!
Zsolt Sándli, trainee lawyer