Real Estate in Hungary

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Why It's a Good Investment

Hungary is one of the most popular tourist destinations in Europe, with a well-developed infrastructure. Real estate prices in Hungary are constantly rising, so investment projects have high liquidity. At the same time, the cost of real estate in Hungary is still relatively low compared to other European countries. Therefore, buying real estate in Hungary can be an effective investment for saving and growing your capital. It is also an investment in improving your quality of life, especially your health, as the country has a large number of mineral springs and a well-developed spa infrastructure.

Residential real estate in Hungary is widely represented in the country. New buildings with modern apartments are being built, and buyers’ reviews confirm the high quality of the constructed residential complexes. There are many apartments, houses, cottages, and villas for sale on the secondary market. Apartments and flats in restored historic buildings are in particular demand. Investors are also interested in investing in commercial real estate in the capital, Budapest, due to the opportunity to generate high rental income from entrepreneurs who come to the city and rent space.

Features of Buying Real Estate

The transfer of ownership of real estate takes place on the basis of a written purchase and sale agreement signed by both the seller and the buyer. A party can be represented by an authorized person acting on the basis of a written power of attorney, who can sign the agreement on behalf of the principal.

When transferring ownership, the change of ownership must be registered in the real estate register on the basis of a written purchase and sale agreement.

It is important to know that for the registration of the buyer’s ownership by the land authority on the basis of a purchase and sale agreement, this agreement must be certified by the signature and seal of a lawyer registered in Hungary.

How Can a Foreign Citizen Acquire Real Estate in Hungary?

As a foreign citizen, you can buy real estate in Hungary directly or through a commercial organization established by you in the Republic of Hungary.

If you want to buy real estate in Hungary as a citizen of a state that is not a member of the European Union or the European Economic Area, then certain restrictions apply to your property acquisition. According to them, to acquire ownership of a land plot that is not considered agricultural land, on an independent real estate (for example, a residential property) or, as an independent real estate, on a farm with an adjacent area of not more than 6,000 square meters, you must obtain a permit. In the course of obtaining such a permit, no special requirements are imposed on the buyer, however, if the head of the district (capital) administrative authority and the mayor of the municipality at the location of the real estate decide that the acquisition of the property is contrary to the interests of the municipality or other public interests, then the permit may be denied.

However, there are several reasons that justify the purchase of real estate through a legal entity (i.e., a company established by the buyer in Hungary). First of all, it is worth noting that if you have established a commercial organization in Hungary, then the restrictions on the right to acquire property do not apply to the acquisition of real estate. When selling a company that owns real estate, the buyer does not have to pay a state fee, and even if he is not a citizen of the Republic of Hungary, he does not need to obtain a permit to acquire property.

Our team of experienced real estate professionals can help you find the perfect property to meet your needs and budget. We have a deep understanding of the Polish real estate market and can help you navigate the complex process of buying property in Poland from abroad.

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