Real Estate in Hungary

With property prices continually rising especially in Budapest, many real estate properties in Hungary are owned by foreign investors today. For expatriates looking for a home, this may not be viewed very positively though. Still, with the attractive compensation packages being offered to most foreign workers, buying a home in Hungary is not a far-fetched dream.  

Properties in Hungary are mostly privately owned and freehold. Because of this, prices have been rapidly increasing over the years. Aside from Budapest, another city that is a favorite among foreign investors is Balaton, a place where resorts and hotels are most popular for Hungarians and foreigners alike. Residential values in Hungary are usually below €15,000, with the real estate agent payment getting 3-5% plus a 20% VAT to be paid by the buyer.    

Hungarian law requires a property purchase to have a purchase agreement countersigned by a lawyer. Foreigners are required to secure a permit from KÃzigazgatási Hivatal (Regional Administrative Office) for them to be able to buy properties as private individuals. The permit will be issued 2 to 3 months after the application. However, it is deemed best for foreigners to first register a business or company in Hungary for them to be able to buy properties more easily since there will be no more permits required for this type of purchase.