In this article, we will cover all you need to know about real estate investment in Hungary for foreigners.
Why Hungary?
- Accessibility. Hungary is located in Central Europe, it’s easy to travel to other European countries with its good transportation system.
- Average price of residential property in Hungary is 2515 € (Budapest) per m2 which is low compared to major European countries, as of June 2020.
- Natural Beauty
- Stable economy and dynamic market
- No restriction to foreign buyers.
All these factors makes investing in real estate in Hungary more attractive and profitable.
The Impact of Covid-19 on Real Estate Investments in Hungary
As a result of strict measures and social distancing, in Budapest the ratio of purchases for investment was 27% in March and 35% in April – compared to the year-on-year level of 40-50% – which indicates that investors’ interest has not disappeared in full, but has declined. Investors perceive the impact of the pandemic as a short-term crisis, which is supported by the fact that for the time being they are not present on the selling side.(Source)
Looking ahead, the impact of the current trend on the housing market may be significant depending on the length of the pandemic. In recent years, the macroeconomic fundamentals supported the supply side of the housing market, but under a prolonging crisis the macroeconomic developments that determining the housing market may convert.(Source)
All in all, it’s a good time to purchase a property in the heart of the Europe as experts think that when pandemic is over, everything will be back to normal slowly and real estates will continue to gain value again.
Where to Start?
Every real estate investment starts with searching and choosing the right property. The easiest way is to search the web. In Hungary, the biggest real estate site is the realestatehungary where you can find any kind of real estate, or you can choose to from the big agencies. If you choose an agency you can give them the details what you need and they find the right property for you.
To buy a real estate in Hungary, you should have a lawyer to finalize the process.
According to Hungarian Law, property purchases shall be concluded through purchase agreement countersigned by a lawyer. It is important that in Hungary you must have a lawyer to buy real estate so when you found the one you want to buy then comes the part where we can help you and provide complete legal assistance from drafting the contract to the possession of the property.
During the process, we can help you negotiate with the seller and write the contract with all the details that are important for you and for the registration of the ownership. You just have to sign the contract and we will take care of the rest.
Costs That You'll Have to Pay While Purchasing the Real Estate
- Lawyer fee (needs prior consultation)
- Registration fee (6.600 Ft)
- Property acquisition duty (4% of the price of the property)
- Property tax (depends on where you buy the property)
Are There Any Restrictions on Foreigner Buyers?
There is no restriction on home buyers who are European Union citizens. However, Non-Eu Member’s Citizens must obtain a permit. In order to acquire the permit, first step is singing contract and then our lawyers can handle the rest of the permit process.
Please check Frequently asked questions about real estate investment in Hungary.
Our Services
Choose Your Real Estate
Decide property or
We can help to find the suitable one for you
Handle All Paper Works
We handle purchase agreement and other paper works professionally besides property legal status check
Manage Your Property
If you do not buy to live, we offer property management. You can make more profit without spending time.
Due Diligence of the property is quite important to proceed to buy property in Hungary. Gurcan Partners International Law Firm’s professional team is ready to assist you during the all process to secure your investment.
Please contact us:
info@gurcanpartners.com
or Call Us
+36 1 808 94 49 (English)
All rights reserved. All rights of Real Estate Investment in Hungary article belong to Gurcan Partners. The author has no responsibilities from the information of this article. This article is prepared just to inform.
Att. Bedrettin Gürcan
Gurcan Partners Budapest Office
Address :
Westend Business Centre, 7th Floor, Váci út 22-24, 1132
Budapest /Hungary
Phone: +36 1 808 94 49 (English)
Schedule an initial online consultation
To read our other articles:
- Company Taxation in Hungary I ” KATA ” Start-up Friendly Taxation
- Taxation in Hungary I Taxes – Social Security
- Company Registration in Hungary I Step by Step
- Company Formation in Hungary
- Company Formation in Europe
- Buying Property in Hungary
- Starting a Business in Hungary
- Company Formation in Poland
- Company Formation in the Czech Republic
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