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
If you're a foreigner looking to buy residential property in Budapest, understanding the full cost picture is crucial before you commit.
We constantly update this blog post so you always have the freshest data on Budapest property taxes, fees, and hidden costs in 2026.
This guide breaks down every expense you'll face as a buyer, from transfer duty to lawyer fees and ongoing ownership costs.
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.
Overall, how much extra should I budget on top of the purchase price in Budapest in 2026?
How much are total buyer closing costs in Budapest in 2026?
As of early 2026, the estimated total buyer closing costs in Budapest typically range from 5.5% to 7.5% of the purchase price, which on an 80 million HUF property (about 208,000 EUR or 244,000 USD) means roughly 4.4 to 6 million HUF (11,400 to 15,600 EUR or 13,300 to 18,200 USD) in extra expenses.
The minimum extra budget for closing costs in Budapest, when keeping expenses to the bare legal minimum as a cash buyer with a simple title, is around 4.7% to 5.5% of the purchase price, so for that same 80 million HUF property you could get away with approximately 3.8 to 4.4 million HUF (9,900 to 11,400 EUR or 11,500 to 13,400 USD).
The maximum extra budget buyers should realistically plan for in Budapest, especially if you're a non-EU foreigner needing permits, translations, and mortgage-related costs, can reach 8% to 10% of the purchase price, meaning up to 6.4 to 8 million HUF (16,600 to 20,800 EUR or 19,400 to 24,200 USD) on that 80 million HUF property.
The main factors that determine whether your closing costs fall at the low or high end include your nationality (non-EU buyers need a 50,000 HUF acquisition permit), whether you need certified translations and a bilingual lawyer, whether you're taking a mortgage (which adds valuation and bank fees), and how complex the property's ownership history is.
What's the usual total % of fees and taxes over the purchase price in Budapest?
The estimated usual total percentage of fees and taxes over the purchase price in Budapest is around 5.5% to 7.5% for most foreign buyers completing a straightforward residential transaction.
The realistic low-to-high percentage range that covers most standard property transactions in Budapest stretches from about 4.7% at the lean minimum to around 10% for complex cases involving permits, translations, and mortgages.
Of that total percentage, roughly 4% goes to the government as transfer duty (the single biggest cost), while the remaining 1.5% to 3.5% covers professional service fees including your lawyer, land registry filings, and any permit or translation costs specific to foreign buyers.
By the way, you will find much more detailed data in our property pack covering the real estate market in Budapest.
What costs are always mandatory when buying in Budapest in 2026?
As of early 2026, the estimated list of costs that are always mandatory when buying property in Budapest includes the property transfer duty (4% of market value), land registry filing fees (around 10,600 HUF or 28 EUR/32 USD for standard registration), and a lawyer's fee to prepare and file the contract since Hungary requires lawyer-led conveyancing for property transfers.
Costs that are optional but highly recommended for buyers in Budapest include an independent technical survey (especially for older Budapest buildings that can hide expensive plumbing or electrical issues), a full title due diligence check beyond the minimum, and a valuation report if you're financing with a mortgage.
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What taxes do I pay when buying a property in Budapest in 2026?
What is the property transfer tax rate in Budapest in 2026?
As of early 2026, the estimated property transfer tax rate (called "vagyonszerzési illeték" or acquisition duty) in Budapest is 4% of the property's market value up to 1 billion HUF (about 2.6 million EUR or 3 million USD), and 2% on any portion above that threshold, with an absolute cap of 200 million HUF (about 520,000 EUR or 606,000 USD) per property.
There are no extra transfer taxes specifically for foreigners buying property in Budapest, as the 4% duty rate applies equally regardless of nationality, though non-EU/EEA buyers face an administrative permit process (not an extra tax) that costs 50,000 HUF (about 130 EUR or 152 USD).
Buyers pay VAT on residential property purchases in Budapest mainly when buying new-build homes from a developer, where a 5% reduced VAT rate applies to qualifying new residential construction through the end of 2026 and the VAT is typically embedded in the purchase price rather than paid separately at closing.
Hungary doesn't have a separate "stamp duty" in the way some countries do, as the main stamp-like charge is the property acquisition duty described above, which the tax authority (NAV) calculates and sends to you within 60 days of the transaction with a 15-day payment deadline.
Are there tax exemptions or reduced rates for first-time buyers in Budapest?
The estimated tax exemption or reduced rate for first-time buyers in Budapest depends on specific conditions outlined in NAV's duty booklet, including a "replacement purchase" relief where you sold your previous home within five years before buying (recently extended from three years) and pay duty only on the difference in market values, though many foreigners won't qualify for housing-subsidy-linked exemptions.
If you buy property through a company instead of as an individual in Budapest, the tax picture shifts mainly around how future rental income or profit is taxed (9% corporate tax instead of 15% personal income tax) and how VAT positioning works, though the acquisition duty mechanics remain similar.
There is a tax difference between buying a new-build versus a resale property in Budapest, mainly because new-builds from developers typically include 5% VAT in the price (extended through end of 2026 for qualifying projects), while resale properties generally have no separate VAT line item at closing.
To qualify for exemptions in Budapest, first-time buyers or those claiming replacement purchase relief must meet specific documentation requirements set by NAV, and you should assume you'll pay the full 4% duty unless your lawyer confirms in writing that you qualify for a specific allowance.
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.
Which professional fees will I pay as a buyer in Budapest in 2026?
How much does a notary or conveyancing lawyer cost in Budapest in 2026?
As of early 2026, the estimated cost for a conveyancing lawyer in Budapest ranges from 0.3% to 1.5% of the purchase price plus 27% VAT, which on an 80 million HUF property (about 208,000 EUR or 244,000 USD) typically means 240,000 to 1.2 million HUF (625 to 3,100 EUR or 730 to 3,640 USD) for standard Hungarian-language service, with bilingual lawyers at the higher end around 1% or more.
Lawyer fees in Budapest are typically charged as a percentage of the property price rather than a flat rate, though some lawyers offer fixed-fee arrangements for simpler transactions, so you should always request a written quote before signing any engagement letter.
Translation and interpreter services for foreign buyers in Budapest typically cost between 30,000 and 200,000 HUF (78 to 520 EUR or 91 to 606 USD) depending on the volume of documents and language pair, with certified translations from the official provider OFFI setting the benchmark for legal documents like contracts and powers of attorney.
Whether you need a tax advisor in Budapest depends on your situation, but if you plan to rent out the property or buy through a company, expect to pay around 50,000 to 250,000 HUF (130 to 650 EUR or 152 to 758 USD) for one-time advice or more for ongoing filing support.
We have a whole part dedicated to these topics in our our real estate pack about Budapest.
What's the typical real estate agent fee in Budapest in 2026?
As of early 2026, the estimated typical real estate agent fee in Budapest ranges from 2% to 5% of the purchase price plus 27% VAT, which on an 80 million HUF property means roughly 1.6 to 4 million HUF (4,160 to 10,400 EUR or 4,850 to 12,120 USD) before VAT.
In most Budapest residential transactions, the seller pays the listing agent's commission rather than the buyer, though buyers who hire their own buyer's agent or agree to split the fee will face this cost directly.
The realistic low-to-high range for agent fees in Budapest stretches from around 1.5% for simple transactions to 5% or more for complex or high-end properties, and the commission is almost always negotiable so you should discuss this upfront.
How much do legal checks cost (title, liens, permits) in Budapest?
The estimated cost for legal checks including title search, liens verification, and permits review in Budapest is typically between 50,000 and 300,000 HUF (130 to 780 EUR or 152 to 910 USD) on top of your lawyer's base fee, depending on whether the property has complex ownership history, usufruct rights, or condo disputes.
The property valuation fee in Budapest, which banks require if you're getting a mortgage, typically costs between 40,000 and 120,000 HUF (104 to 312 EUR or 121 to 364 USD) depending on the bank and property size.
The legal check that is most critical and should never be skipped in Budapest is the full title search (tulajdoni lap) to verify clean ownership, check for encumbrances or liens, and confirm the seller has legal authority to sell, since older Budapest buildings often have complicated inheritance or usufruct situations.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Budapest.
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What hidden or surprise costs should I watch for in Budapest right now?
What are the most common unexpected fees buyers discover in Budapest?
The estimated list of the most common unexpected fees buyers discover in Budapest includes condominium arrears or unpaid common charges from previous owners (especially in older buildings), outstanding utility balances that need clearing at handover, renovation surprises in historic Budapest buildings with outdated plumbing or electrical systems, and extra legal work when ownership history is complicated by inheritance or usufruct rights.
Yes, there can be unpaid property taxes or debts a buyer could inherit when purchasing in Budapest, which is why your lawyer should confirm no enforceable encumbrances, no municipal tax liabilities tied to the property, and clean title entries before you complete the purchase.
Buyers can get scammed with fake listings or fake fees in Budapest through tactics like fake "reservation fee" requests, pressure to pay cash deposits outside lawyer-controlled escrow, or impersonation of owners or agents, so you should only pay deposits under lawyer-controlled documentation and verify identity and title before any money moves.
Fees usually not disclosed upfront by sellers or agents in Budapest include translation and power of attorney costs, extra legal work for complicated title situations, utility reconnection fees, and building assessments or mandatory repairs voted by the condominium association after your purchase.
In our property pack covering the property buying process in Budapest, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Budapest?
The estimated extra fees or costs buyers face if the property has a tenant in Budapest include legal review of the existing lease (potentially 50,000 to 150,000 HUF or 130 to 390 EUR/152 to 455 USD), deposit transfer accounting, and possibly higher legal costs if there's any dispute about lease terms or the tenant's rights.
The legal obligations the buyer inherits when purchasing a tenanted property in Budapest include honoring the existing lease terms, respecting the tenant's security deposit, and following Hungarian tenant protection rules that generally prevent immediate eviction of sitting tenants with valid contracts.
It is generally not possible to terminate the existing lease immediately after purchase in Budapest if the tenant has a valid fixed-term contract, though indefinite leases may be terminable with proper notice periods as specified in the contract or by law.
A sitting tenant typically affects the property's market value and negotiating position in Budapest by reducing the buyer pool (investors may want it, owner-occupiers won't), potentially allowing a 5% to 15% discount on asking price, and introducing vacancy risk if the tenant leaves at an inconvenient time.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Budapest.
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 fees are negotiable, and who really pays what in Budapest?
Which closing costs are negotiable in Budapest right now?
The estimated list of closing costs that are negotiable in Budapest includes your lawyer's fee structure (fixed versus percentage, and capping "extras"), who pays for certain certificates or translation costs, and the real estate agent's commission allocation (especially if you're bringing your own buyer's agent).
The closing costs that are fixed by law or regulation and cannot be negotiated in Budapest include the NAV property transfer duty (4% up to 1 billion HUF), the land registry filing fees (10,600 HUF for standard registration), and the foreign acquisition permit fee (50,000 HUF for non-EU buyers).
The typical discount or reduction buyers can realistically achieve on negotiable fees in Budapest ranges from 10% to 30% on lawyer fees if you negotiate upfront and compare quotes, and agent commissions can sometimes be reduced by 0.5% to 1% if you're a serious buyer in a slower market.
Can I ask the seller to cover some closing costs in Budapest?
The estimated likelihood that a seller will agree to cover some closing costs in Budapest is moderate in a balanced market, as commercially you can ask for anything but Hungarian sellers more commonly prefer to adjust the price downward rather than pay buyer-side costs like transfer duty directly.
The specific closing costs sellers are most commonly willing to cover in Budapest include fixing defects found during inspection, leaving furniture or appliances in the property, or crediting you for known issues rather than formally paying your duty or lawyer fees.
Sellers are more likely to accept covering closing costs in Budapest during buyer's market conditions when properties have sat on the market for a long time, when properties need significant renovation, or when the seller is motivated by a deadline like an inheritance settlement or relocation.
Is price bargaining common in Budapest in 2026?
As of early 2026, the estimated norm for price bargaining in Budapest is that negotiation is common and expected, with the gap between listing prices and final closing prices sitting around 5% on average, though this varies significantly by property condition, location, and how long the listing has been on the market.
Buyers in Budapest typically negotiate around 3% to 8% below the asking price (roughly 2.4 to 6.4 million HUF or 6,200 to 16,600 EUR/7,300 to 19,400 USD on an 80 million HUF property), with renovated properties in hot districts like District V or VII seeing smaller discounts and stale listings or renovation projects seeing larger discounts of 10% or more.
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What monthly, quarterly or annual costs will I pay as an owner in Budapest?
What's the realistic monthly owner budget in Budapest right now?
The estimated realistic monthly owner budget in Budapest for a typical apartment, excluding mortgage payments, is around 50,000 to 180,000 HUF (130 to 470 EUR or 152 to 545 USD) per month depending on building type, size, and heating system.
The main recurring expense categories that make up this monthly budget in Budapest include condominium common charges (15,000 to 60,000 HUF), utilities like electricity, gas, and water (20,000 to 80,000 HUF), home insurance (2,000 to 8,000 HUF equivalent), and a maintenance reserve for repairs (10,000 to 40,000 HUF equivalent).
The realistic low-to-high range for monthly owner costs depending on property type in Budapest stretches from around 50,000 HUF (130 EUR or 152 USD) for a small modern panel apartment with efficient heating to over 200,000 HUF (520 EUR or 606 USD) for a large older building with central heating and high common charges.
The monthly cost that tends to vary the most in Budapest is utilities, especially heating costs, because older brick buildings and those with inefficient central heating systems can cost two to three times more to heat than modern apartments with individual gas boilers or good insulation.
You can see how this budget affect your gross and rental yields in Budapest here.
What is the annual property tax amount in Budapest in 2026?
As of early 2026, the estimated annual property tax amount in Budapest ranges from 0 HUF (many owner-occupied residential properties are exempt) to around 100,000 HUF or more (260 EUR or 303 USD) per year for larger properties or those registered for business use, depending on which district your property is located in.
The realistic low-to-high range for annual property taxes depending on property value and use in Budapest stretches from zero (full exemption for residential-only use in many districts) to over 100,000 HUF per year (260 EUR or 303 USD) if your property is large, used for rental income, or registered as a business address.
Property tax (építményadó or building tax) in Budapest is calculated by each district municipality based on either the property's usable area in square meters (up to 1,100 HUF per sqm maximum) or a percentage of adjusted market value (up to 3.6% maximum), with each district setting its own rates within these caps.
Yes, there are exemptions and reductions available in Budapest, as many districts exempt properties used solely for residential purposes from building tax, though registering a business at your residential address or renting out the property typically triggers the tax obligation.
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.
If I rent it out, what extra taxes and fees apply in Budapest in 2026?
What tax rate applies to rental income in Budapest in 2026?
As of early 2026, the estimated tax rate that applies to rental income in Budapest for individual landlords is 15% personal income tax (PIT) on the taxable rental profit.
Yes, landlords in Budapest can deduct expenses from rental income taxes, with qualifying expenses including utilities, repairs, renovation costs, insurance, accounting and legal fees, appliances under 100,000 HUF, real estate tax, and management fees, or alternatively you can use a simplified flat-rate expense deduction method.
The realistic effective tax rate range after deductions for typical landlords in Budapest is around 7% to 12% of gross rental income, depending on how many expenses you can document and whether you use itemized deductions or the simplified method.
Foreign property owners in Budapest do not pay a fundamentally different rental income tax rate than residents, as the 15% PIT applies to Hungarian-source rental income regardless of the owner's nationality, though non-residents may need to register with NAV and their home country tax treaty could affect total tax liability.
Do I pay tax on short-term rentals in Budapest in 2026?
As of early 2026, the estimated tax obligation on short-term rentals in Budapest includes the same 15% personal income tax on rental profit as long-term rentals, plus potential local tourism-related requirements and registration with the National Tourism Data Centre, though the regulatory environment for short-term rentals is currently in flux with a moratorium on new registrations through end of 2026 and District VI (Terézváros) banning short-term rentals entirely from January 2026.
Short-term rental income in Budapest may be taxed differently than long-term rental income in practice because of higher operating costs (management fees around 20% to 25% plus VAT, more frequent cleaning and turnover), though the underlying 15% PIT rate is the same, so your effective tax burden depends heavily on your expense structure and compliance with registration requirements.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Budapest.
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If I sell later, what taxes and fees will I pay in Budapest in 2026?
What's the total cost of selling as a % of price in Budapest in 2026?
As of early 2026, the estimated total cost of selling a property in Budapest as a percentage of the sale price typically ranges from 3% to 7%, plus any capital gains tax that may apply depending on your holding period and profit.
The realistic low-to-high percentage range for total selling costs in Budapest stretches from around 2% for a simple sale with minimal agent involvement to over 10% if you're paying a full-service agent commission, legal fees, and capital gains tax on a short-term hold with significant profit.
The specific cost categories that typically make up the total selling expense in Budapest include real estate agent commission (2% to 5% plus VAT, often paid by the seller), seller's lawyer fee (smaller than buyer side but variable), and potential capital gains tax (15% of taxable gain, reduced over time).
The single cost that is usually the largest contributor to selling expenses in Budapest is the real estate agent commission when using a full-service agent, though for properties held less than five years with significant appreciation, capital gains tax can exceed the agent fee.
What capital gains tax applies when selling in Budapest in 2026?
As of early 2026, the estimated capital gains tax rate that applies when selling property in Budapest is 15% personal income tax on the taxable portion of your gain, with the taxable portion decreasing over time until it reaches 0% after the fifth year of ownership.
The main exemption to capital gains tax available in Budapest is the time-based reduction: if you sell in the first year you pay tax on 100% of the gain, in the second year on 90%, third year 60%, fourth year 30%, and from the fifth year onward your taxable gain is zero, effectively eliminating the tax for long-term holders.
Foreigners do not pay extra taxes or a different capital gains rate when selling property in Budapest, as the 15% PIT and time-based reduction apply equally regardless of nationality, though your home country's tax rules and any applicable tax treaty may affect your total global tax liability.
The capital gain in Budapest is calculated as the sale price minus documented acquisition costs (purchase price plus transfer duty, lawyer fees, and similar expenses), minus improvement costs that added value, with the resulting gain then reduced based on your holding period before applying the 15% tax rate.
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 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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Hungarian National Tax and Customs Administration (NAV) | Official Hungarian tax authority explaining actual duty and income tax rules. | We used NAV booklets to pin down the 4% transfer duty, 2% rate above 1 billion HUF, and the 200 million HUF cap. We also used it for the 15% capital gains tax and time-based reduction schedule. |
| Hungarian Government Land Registry | Official government source for land registry and filing fees. | We used it to confirm the 10,600 HUF standard registration fee and 50,000 HUF foreign acquisition permit cost. We included these in our minimum and maximum closing cost calculations. |
| Magyar Nemzeti Bank (MNB) Housing Market Report | Hungary's central bank analyzing housing market data and trends. | We used it to validate negotiation practices and price bargaining norms in Budapest. We also referenced it for market condition context in early 2026. |
| Hungarian Central Statistical Office (KSH) | National statistics agency providing official housing price data. | We used KSH data to ground our price examples and to justify providing percentage ranges rather than fixed numbers. We also used it to confirm Budapest market segmentation. |
| Hungarian National Legislation Database (NJT) | Official repository of Hungarian laws including district-level regulations. | We used it to show real Budapest district examples of annual building tax rates and exemptions. We referenced District XVI's ordinance as a concrete example. |
| Accace Hungary | Major tax advisory firm providing detailed legislative updates. | We used it to confirm the 5% VAT extension for new residential construction through end of 2026. We cross-checked their analysis against NAV guidance. |
| RSM Hungary | Recognized tax and advisory firm with professional credentials. | We used it to cross-check how company buyers differ from individuals regarding corporate tax and VAT. We also referenced it for landlord obligations. |
| Global Property Guide | Established international real estate data provider. | We used it to verify transfer tax rates, capital gains rules, and building tax maximums. We cross-referenced their data with official Hungarian sources. |
| e-ingatlanugyvedek.hu | Hungarian real estate lawyers network providing practitioner insights. | We used it for lawyer fee ranges, land registry costs, and building tax details. We verified their figures align with official fee schedules. |
| PwC Tax Summaries | Major accounting firm providing comprehensive tax overviews. | We used it to verify capital gains tax treatment for non-residents and building tax maximums. We cross-checked their Hungary summary against NAV guidance. |
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