Property for Sale in Hungary

Since the fall of communism, Hungary has blossomed, transforming itself politically and economically. It is now a democratic republic with a strong, stable economy, and a member of the European Union.

Having been part of the Ottoman, Habsburg and Austro-Hungarian Empires, the country has a fascinating and multi-layered cultural legacy of extraordinary richness. This, combined with the availability of low-cost flights from the UK to the capital, Budapest, has led to a boom in tourism and the resulting inevitable emergence of an international property market.

Over the next six years €26.35 Billion in EU funding will flow into Hungary. There can be no doubting that this will have a tremendous impact on the Hungarian economy and the prospects of those investing in property in Hungary and in particular Budapest.

As a new EU member state Hungary is expected to catch up with its wealthier EU partners. As the economy catches up so will Hungarian and Budapest real estate prices.

To purchase any type of land except arable land, a private person needs a permit from the district council of the local municipality, and in Budapest any purchase of property is subject to the approval of the Administrative Office (AOB). No restrictions apply to ownership of property by Hungarian legal entities.

Hungarian law requires that real estate purchases shall be concluded through private contract (purchase agreement) countersigned by a lawyer. Non-Hungarian citizens are further obliged to gain the approval of the relevant Administrative Office (Közigazgatási Hivatal) in order to purchase property as a private person. According to regulations most foreigners should receive a permit within 2-3 months.

Most lawyers advise foreign nationals to set up a company registered in Hungary in order to purchase property. In this case, no permit is needed. This is a fairly swift and easy procedure (taking 1-2 days), and all expenses can be written off.