Authored by the expert who managed and guided the team behind the Hungary Property Pack
Yes, the analysis of Budapest's property market is included in our pack
Buying property in Budapest as a foreigner is absolutely possible, but the rules differ depending on where you come from and what type of property you want.
In this guide, we break down everything you need to know about foreign ownership, visa requirements, the buying process, financing, and real costs in Budapest as of the first half of 2026.
We constantly update this blog post to reflect the latest regulations and current housing prices in Budapest.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Budapest.
Insights
- Non-EU buyers in Budapest need a government permit to purchase residential property, but approval rates are high and the process typically adds just a few weeks to the timeline.
- Budapest's District VI has banned short-term rentals starting January 2026, which can drastically reduce rental income potential for investors targeting that area.
- The property transfer duty in Hungary is 4% of market value, making it the single largest closing cost for most Budapest apartment purchases.
- Foreigners can expect mortgage rates around 6.5% to 7.5% in Budapest in 2026, though state-subsidized rates exist if you meet strict residency and family criteria.
- Agricultural and forestry land in Hungary is off-limits to non-EU nationals, so always verify the land classification on the title sheet before paying any deposit.
- Hungary does not have a nationwide annual property tax, and most Budapest apartment owners pay between zero and 50,000 HUF per year in local levies.
- Buying a home in Budapest does not automatically grant you residency or citizenship, as Hungary's Guest Investor program is tied to specific approved investments, not home purchases.
- A Hungarian lawyer must countersign your purchase contract for it to be registered in the Land Registry, making legal representation effectively mandatory in Budapest.
What can I legally buy and truly own as a foreigner in Budapest?
What property types can foreigners legally buy in Budapest right now?
Foreigners in Budapest can generally buy the same residential property types as Hungarian citizens, including apartments, condominiums, houses, townhouses, and villas.
However, the key difference is that non-EU buyers (also called third-country nationals) typically need a government permit to acquire non-agricultural real estate in Budapest, while EU, EEA, and Swiss citizens usually do not need this extra approval.
In practice, this permit requirement is built into the closing process, so your lawyer will handle the application alongside the sale contract and land registry registration.
The permit review checks whether the purchase conflicts with public or municipal interests, which is rare, but it remains a formal step that can add a few weeks to the transaction timeline for non-EU buyers.
Finally, please note that our pack about the property market in Budapest is specifically tailored to foreigners.
Can I own land in my own name in Budapest right now?
Yes, foreigners can own urban residential land in their own name in Budapest, which means the plot under a house or villa is typically buyable subject to the same permit rules that apply to buildings.
That said, agricultural and forestry land is completely off-limits to non-EU nationals in Hungary, so this restriction applies even if the land is located within Budapest's city limits.
Some properties marketed as "garden plots" or "green land" can be legally classified in ways that trigger agricultural land rules, so you should always ask your lawyer to confirm the exact land classification on the official title sheet before paying any deposit.
As of 2026, what other key foreign-ownership rules or limits should I know in Budapest?
As of early 2026, one rule that often surprises foreign buyers is that Budapest's District VI (Terézváros) has banned short-term rentals, which directly affects anyone planning to use their apartment for Airbnb-style income.
There is no foreign-ownership quota on apartments or condominiums in Budapest, so you do not face a cap on how many foreign buyers can own units in a given building.
Non-EU buyers do need approval from the local government office as part of the permit process, and this registration requirement is handled by your lawyer alongside the land registry filing.
The District VI short-term rental ban is the most notable recent regulatory change affecting foreign investors in Budapest, and other districts may follow, so it is worth checking the latest rules for your specific target neighborhood before committing.
What's the biggest ownership mistake foreigners make in Budapest right now?
The biggest mistake is treating "the apartment" as the whole asset and ignoring what the title sheet and building documents actually say, which can hide legal issues, renovation debts, or restrictions on your intended use.
If you make this mistake, you could end up owning a property with unresolved encumbrances, surprise financial obligations to the condominium, or a ban on the short-term rental income you were counting on.
Other classic pitfalls in Budapest include underestimating the permit and registration timeline if you are non-EU, missing district-level rental restrictions, and skipping the lawyer review of condominium bylaws before signing.
We have made this infographic to give you a quick and clear snapshot of the property market in Hungary. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Budapest?
Do I need a specific visa to buy property in Budapest right now?
You do not need a special "buyer visa" to purchase property in Budapest, and you can legally sign a purchase contract while visiting on a tourist stay.
However, if you are non-EU, the permit and registration process may take longer than a short visit allows, so many buyers either stay longer or use a power of attorney to complete the steps remotely.
You will generally need a Hungarian tax ID (called an "adószám") for clean compliance, especially if you plan to rent out the property or interact with Hungarian tax obligations after purchase.
Foreign buyers typically need to present valid ID documents, proof of funds, and any residency documents they hold, and your lawyer will guide you on the exact set required for your nationality and situation.
Does buying property help me get residency and citizenship in Budapest in 2026?
As of early 2026, buying a home in Budapest does not automatically give you Hungarian residency or citizenship, because property ownership and immigration status are two completely separate things under Hungarian law.
Hungary does have a Guest Investor residence permit program, but it is structured around qualifying investments like approved funds, not simply purchasing a residential property.
If you want residency, you will need to explore other pathways such as employment-based permits, family reunification, or the specific criteria of the Guest Investor program, all of which are handled by Hungary's Office of Immigration and Nationality (OIF).
We give you all the details you need about the different pathways to get residency and citizenship in Budapest here.
Can I legally rent out property on my visa in Budapest right now?
Your visa status does not directly determine whether you can rent out property in Budapest, because owning property is separate from residing in Hungary, and foreigners can earn rental income regardless of their immigration status.
You do not need to live in Hungary to rent out your Budapest property, and many foreign owners manage their rentals remotely through local agencies while handling tax compliance from abroad.
The important details to know are that you must register rental income with Hungary's tax authority (NAV), pay the applicable tax (typically 15% for individuals), and check whether your target district has any short-term rental restrictions in place.
We cover everything there is to know about buying and renting out in Budapest here.
Get fresh and reliable information about the market in Budapest
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How does the buying process actually work step-by-step in Budapest?
What are the exact steps to buy property in Budapest right now?
The typical sequence in Budapest goes like this: you make an offer, your lawyer pulls the title sheet and checks for issues, you sign a preliminary agreement with a deposit, then sign the final sale contract countersigned by a Hungarian lawyer, apply for a permit if you are non-EU, pay the balance, register ownership with the Land Registry, and finally pay the acquisition duty.
You do not strictly need to be physically present if you use a properly drafted power of attorney, but many buyers prefer to attend the signing and property handover in person.
The step that makes the deal legally binding in Budapest is typically the signing of the final sale contract, because this document (once countersigned by a lawyer) is what gets filed with the Land Registry to transfer ownership.
From accepted offer to final registration, the typical timeline in Budapest ranges from about four to eight weeks for EU buyers, and may stretch to ten or twelve weeks for non-EU buyers who need permit approval.
We have a document entirely dedicated to the whole buying process our pack about properties in Budapest.
Is it mandatory to get a lawyer or a notary to buy a property in Budapest right now?
Yes, it is effectively mandatory because Hungary's Land Registry will only accept a transfer deed that is either prepared by a notary or countersigned by a qualified Hungarian attorney.
The main difference is that a notary in Budapest acts as a neutral public official who can draft and authenticate documents, while a lawyer represents your interests and can negotiate on your behalf throughout the transaction.
One key item to include in your lawyer's engagement scope is the title sheet review and encumbrance check, because this due diligence step protects you from hidden liens, disputes, or ownership issues before you pay any money.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Hungary versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What checks should I run so I don't buy a problem property in Budapest?
How do I verify title and ownership history in Budapest right now?
The official registry you should use is Hungary's Land Registry (Földhivatal), which maintains all property records and is accessible through the online Földhivatali Információs Rendszer portal.
The key document to request is the official title sheet (called "tulajdoni lap" in Hungarian), which shows the current owner, the property's legal description, and any registered rights or claims.
Buyers commonly check ownership history going back at least ten to fifteen years to catch any irregularities, although your lawyer may recommend a longer look-back for older buildings with complex histories.
One clear red flag that should stop or pause a purchase is finding unresolved disputes, multiple ownership claims, or active enforcement proceedings registered on the title sheet.
You will find here the list of classic mistakes people make when buying a property in Budapest.
How do I confirm there are no liens in Budapest right now?
The standard way to confirm there are no liens or encumbrances in Budapest is to have your lawyer pull a fresh title sheet from the Land Registry shortly before signing and again right before closing.
One common type of lien to specifically ask about is a mortgage or bank charge from the seller's existing loan, which must be released before you can take clean title.
The best written proof of lien status is the official title sheet extract itself, because it lists all registered encumbrances including mortgages, usufruct rights, enforcement claims, and other burdens affecting the property.
How do I check zoning and permitted use in Budapest right now?
The authority to use for zoning in Budapest is the relevant district municipality, which maintains local zoning plans and can confirm what uses are permitted for a specific property.
The document that typically confirms zoning classification is the local zoning map (called "szabályozási terv") combined with any building permits or usage certificates on file for the property.
One common pitfall foreign buyers miss in Budapest is assuming they can run short-term rentals anywhere, when in fact some districts like District VI have banned them entirely, and condominium bylaws may also restrict commercial use.
Buying real estate in Budapest can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Budapest, and on what terms?
Do banks lend to foreigners for homes in Budapest in 2026?
As of early 2026, yes, Hungarian banks do lend to foreigners for home purchases in Budapest, although the process is more selective and documentation requirements are stricter than for local borrowers.
Foreign buyers can typically expect loan-to-value (LTV) ratios in the range of 50% to 70%, with higher ratios available if you have EU residency or can document stable local income.
The most common eligibility requirement is proof of income that the bank can verify, ideally from an EU source or Hungarian employer, because banks are more cautious with income from outside the EU.
You can also read our latest update about mortgage and interest rates in Hungary.
Which banks are most foreigner-friendly in Budapest in 2026?
As of early 2026, the banks most commonly used by foreign buyers in Budapest are OTP Bank, Erste Bank Hungary, and UniCredit Bank Hungary, with Raiffeisen Bank and K&H Bank also handling non-Hungarian clients regularly.
What makes these banks more foreigner-friendly is their experience with English-language documentation, international income verification, and dedicated staff in Budapest who routinely work with expat and foreign buyers.
These banks can lend to non-residents in some cases, but approval is easier and terms are better if you have Hungarian residency status or can show income earned within the EU.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Budapest.
What mortgage rates are foreigners offered in Budapest in 2026?
As of early 2026, foreigners in Budapest can expect mortgage interest rates in the range of about 6.5% to 7.5% APR for market-based HUF loans, with variation depending on the fixed-rate period, your borrower profile, and the specific bank.
Fixed-rate mortgages in Budapest typically carry a small premium over variable rates, often around 0.5 to 1 percentage point higher, but they give you payment certainty, while variable rates can shift with Hungary's central bank policy.
We made this infographic to show you how property prices in Hungary compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Budapest?
What are the total closing costs as a percent in Budapest in 2026?
The typical total closing cost for a residential resale property in Budapest in 2026 is around 5.5% to 7.5% of the purchase price.
This range covers most standard transactions, with simpler deals on the lower end and more complex purchases (like those requiring extra permits or legal work) on the higher end.
The main fee categories that make up closing costs in Budapest include the property transfer duty (also called acquisition duty), lawyer fees, land registry fees, administrative costs, and any translation or apostille fees for foreign documents.
The single biggest contributor is almost always the property transfer duty, which is set at 4% of the property's market value and is assessed by Hungary's tax authority (NAV).
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Budapest.
What annual property tax should I budget in Budapest in 2026?
As of early 2026, most Budapest apartment owners should budget between zero and 50,000 HUF per year (roughly 125 to 130 USD or 115 to 120 EUR) for local property-related taxes, though some districts with higher levies could push this to around 100,000 HUF in a stress case.
Hungary does not have a single nationwide annual property tax; instead, municipalities can levy local building or land taxes at their discretion, and many Budapest districts apply exemptions or low rates for owner-occupied residential property.
How is rental income taxed for foreigners in Budapest in 2026?
As of early 2026, the typical tax rate on rental income for foreign owners in Budapest is 15%, which applies to long-term letting by individuals under Hungary's personal income tax rules.
Foreign owners who are non-residents are taxed on their Hungarian-source rental income and must file with Hungary's tax authority (NAV), either directly or through a tax representative, and you should also check whether your home country's tax treaty affects your total obligation.
What insurance is common and how much in Budapest in 2026?
As of early 2026, a typical annual home insurance premium in Budapest runs between about 50,000 and 80,000 HUF (roughly 130 to 210 USD or 120 to 190 EUR), with the national average around 65,000 HUF according to late-2025 data attributed to Hungary's central bank.
The most common type of coverage is bundled building and contents insurance, which protects against fire, water damage, storms, and theft, and landlords often add liability coverage if they rent out the property.
The biggest factor that makes premiums higher or lower for the same property type in Budapest is the property's location and construction quality, because older buildings or flood-prone areas typically cost more to insure than modern apartments in central districts.
Get the full checklist for your due diligence in Budapest
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Budapest, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| NetJogtár (Hungarian Legislation Database) | It's the official consolidated text of Hungarian law that courts and authorities apply. | We used it to ground the permit-required rules for foreign buyers. We cross-checked it against lawyer guides to translate legal rules into practical steps. |
| NAV (Duty on Property Transfers) | NAV is the tax authority that actually assesses and collects the duty you pay at purchase. | We used it to state the statutory property transfer duty rates. We triangulated it with tax guides from major firms to sanity-check the interpretation. |
| NAV (Rental Income Taxation) | This is NAV's own English booklet explaining how rental income is taxed in practice. | We used it to confirm the baseline tax rate on rental income. We cross-referenced with Big-4 summaries to avoid missing common edge cases. |
| Office of Immigration and Nationality (OIF) | OIF is the government body that issues residence permits and publishes the official criteria. | We used it to describe what Guest Investor status allows. We cross-checked it with the official online application platform pages. |
| MNB (Central Bank Lending Data) | It's published by Hungary's central bank with observed average interest rates. | We used it to anchor our January 2026 mortgage-rate estimate. We cross-referenced it with MNB's statistics pages to confirm the series definition. |
| MNB Housing Market Report | MNB produces the most-cited official housing-market analysis in Hungary. | We used it to describe Budapest-specific market dynamics. We triangulated it with KSH statistics to avoid relying on a single dataset. |
| KSH (Hungarian Central Statistical Office) | KSH is the national statistics agency that publishes official price indices. | We used it to cite Budapest-level pricing and trends. We cross-checked directional trends with MNB reporting. |
| DLA Piper REALWORLD | It's a globally recognized law firm summarizing local legal requirements with citations. | We used it to explain why an attorney is effectively mandatory for registration. We cross-checked with Hungarian law-firm writeups. |
| Jalsovszky Law Firm | It's a leading Hungarian law firm explaining real-world buyer steps. | We used it to describe what the sale contract must contain. We cross-referenced with DLA Piper for legal consistency. |
| ELRA (European Land Registry Association) | It's a reputable pan-European association summarizing member-country rules. | We used it to support the agricultural land restriction for non-EU nationals. We cross-checked with Hungarian legal commentary. |
| Földhivatali Információs Rendszer | It's an official government-run land-registry information portal. | We used it to ground how title sheets are accessed. We paired it with legal sources to explain what to ask your lawyer to pull. |
| Budapest Business Journal | It's a long-running business publication citing MNB data for insurance premiums. | We used it to provide a realistic insurance budget number for late 2025. We treated it as secondary confirmation of the MNB datapoint. |
| Lloyds Bank Trade | It provides an accessible summary of Hungary's tax framework for international readers. | We used it to explain the local property tax structure. We combined it with our own district-level research for realistic estimates. |
| Hungary Today | It's a reputable English-language news source covering Hungarian legal developments. | We used it to document the District VI short-term rental ban. We verified the court ruling details against primary reporting. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Hungary. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Related blog posts