How to buy land in Hungary (guide)

Authored by the expert who managed and guided the team behind the Hungary Property Pack

Everything you need to know before buying real estate is included in our Hungary Property Pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries (Hungary, Poland, Czech Republic, Germany, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Hungary. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Hungarian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Budapest, Debrecen, and Pécs. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of land can foreigners legally buy in Hungary and what restrictions apply?

Foreigners can legally purchase most residential and commercial land in Hungary, but agricultural and forestry land remains largely restricted to Hungarian and qualified EU citizens.

EU, EEA, and Swiss citizens enjoy broad purchasing rights for residential properties, commercial buildings, and development plots without requiring special permits. However, even EU citizens face restrictions when buying agricultural land, vineyards, orchards, or forestry properties, which require demonstrating qualified farmer status and often local residency.

Non-EU nationals must obtain a Property Purchase Permit from local government offices for any real estate transaction, except agricultural land which is generally prohibited entirely. Heritage properties and national monuments require additional special permits regardless of buyer nationality. The permit process costs HUF 50,000-65,000 per property and typically takes 2-6 weeks to complete.

As of June 2025, some regions around Budapest and Lake Balaton are implementing additional restrictions or taxes on foreign buyers to manage rapid price growth and housing affordability concerns.

Which regions in Hungary attract the most foreign land buyers?

Budapest dominates foreign investment, particularly in central districts V, VI, VII, VIII, IX, XIII, and XIV, where buyers pursue both lifestyle and rental income opportunities.

Lake Balaton represents the second most popular destination, especially among German, Austrian, and Dutch buyers seeking holiday homes. The northern shore commands premium prices around €1,750 per square meter, while the southern shore offers better value for money. University cities including Debrecen, Pécs, Szeged, and Győr attract investors targeting stable student rental demand with lower entry costs.

Border regions near Austria and Slovakia, such as Sopron, Mosonmagyaróvár, and Rajka, appeal to retirees and buyers wanting proximity to Western Europe. Wine regions around Eger draw lifestyle buyers interested in rural charm and tourism potential.

These areas attract foreigners due to strong rental demand, established tourism infrastructure, good transportation links, and potential for capital appreciation. Budapest offers the highest rental yields and liquidity, while Lake Balaton provides lifestyle benefits and seasonal rental income.

Can buying land in Hungary lead to residency or citizenship?

Purchasing land alone does not automatically grant residency rights, but Hungary's Golden Visa program allows property investment to qualify for residence permits.

The Guest Investor Residency Program requires non-EU nationals to invest at least €500,000 in residential property as of January 2025, or €250,000 in approved real estate funds, or donate €1 million to Hungarian universities. This investment provides a 10+10 year residence permit renewable indefinitely.

The residency application process takes approximately 5 months and involves obtaining a Guest Investor Visa, completing due diligence checks, making the required investment, and submitting residency applications. Applicants must demonstrate clean criminal records and sufficient financial resources.

Permanent residency becomes available after 3 years of continuous legal residence. Hungarian citizenship by naturalization may be possible after 8 additional years (11 years total), subject to language proficiency, integration requirements, and maintaining continuous residence. It's something we develop in our Hungary property pack.

What are the step-by-step procedures for foreigners to purchase land from abroad?

Step	Action Required	Timeline
1. Property Search	Engage local agent, pay 10% deposit	1-4 weeks
2. Legal Representation	Hire Hungarian lawyer (mandatory)	1 week
3. Preliminary Agreement	Sign purchase intent contract	1 week
4. Permit Application	Submit documents to Land Registry	2-6 weeks
5. Permit Approval	Receive Property Purchase Permit	Within timeline above
6. Final Contract	Sign notarized sale agreement	1 week
7. Property Registration	Register ownership with Land Registry	1-2 months
8. Tax Compliance	Pay transfer taxes and fees	Within 90 days
9. Banking Setup	Obtain tax number, open local account	2-4 weeks

Do you need to be physically present in Hungary to buy land?

Physical presence is not required at any stage of the land purchase process in Hungary, as the entire transaction can be handled remotely through proper legal representation.

Buyers can grant power of attorney to their Hungarian lawyer, allowing them to sign contracts, submit permit applications, attend notary appointments, and complete property registration on the buyer's behalf. This power of attorney must be properly notarized and authenticated according to Hungarian legal requirements.

Remote buyers should ensure their lawyer provides regular updates, copies of all signed documents, and photographic evidence of property inspections. Video calls can be arranged for virtual property viewings and contract explanations.

However, buyers planning to apply for Hungarian residency through property investment will eventually need to visit Hungary to complete biometric data collection and attend residency application appointments.

What documents and permits are mandatory for foreign land purchases?

Non-EU buyers must prepare a comprehensive document package for their Property Purchase Permit application, while EU citizens need fewer documents for direct purchases.

1. **Property Purchase Permit application form (non-EU buyers only)**2. **Administrative fee payment proof (HUF 50,000-65,000)**3. **Certified passport or ID copy with apostille/consular authentication**4. **Preliminary sale and purchase agreement**5. **Current title deed (not older than 21 days)**6. **Criminal record certificate from home country with apostille**7. **Power of attorney for legal representation**8. **Additional documents for minors or legal entities if applicable**

All foreign documents require apostille certification or consular authentication depending on whether the home country is party to the Hague Convention. Documents in languages other than Hungarian must include certified translations.

EU citizens buying non-agricultural land can proceed directly to final contract signing without permit applications, though they still need passport identification, proof of funds, and legal representation.

What are the most common mistakes foreigners make when buying land in Hungary?

Overpaying represents the most frequent and costly mistake, as many English-language property listings inflate prices by 20-30% above local market rates.

Skipping proper due diligence leads to serious legal complications, including unclear property titles, zoning restrictions that prevent intended use, undisclosed co-ownership situations, or existing liens and encumbrances. Many buyers fail to verify building permissions, access rights, or utility connections before purchase.

Not using independent legal representation creates conflicts of interest when buyers rely solely on the seller's agent or lawyer. Engaging an independent Hungarian lawyer ensures proper advocacy and protects against hidden issues or unfavorable contract terms.

Attempting to purchase restricted land types, particularly agricultural or heritage properties without meeting eligibility criteria, results in invalid transactions and lost deposits. Non-EU buyers sometimes proceed without obtaining mandatory Property Purchase Permits, invalidating their entire purchase.

Underestimating total costs leads to financing shortfalls, as buyers often overlook legal fees, transfer taxes, permit costs, and ongoing property taxes that can add 6-10% to the purchase price.

What do foreigners typically use their purchased land for in Hungary?

Residential use dominates foreign land purchases, including primary homes, holiday properties, and retirement residences, particularly in Budapest and around Lake Balaton.

Investment purposes rank second, with buy-to-let properties generating rental income from local tenants, students in university cities, or tourists in popular destinations. Short-term rental platforms like Airbnb attract investors in Budapest's central districts and Lake Balaton's resort areas.

Commercial development appeals to businesses establishing Hungarian operations, retail investors purchasing shops or office buildings, and entrepreneurs developing hospitality or tourism projects.

Lifestyle and relocation purchases increase among EU retirees seeking lower living costs, better climate, and proximity to Western Europe. Wine enthusiasts buy vineyard properties around Eger and Tokaj regions for personal enjoyment and small-scale production.

Agricultural use remains limited due to legal restrictions, though qualified EU farmers do purchase arable land, orchards, and livestock facilities in rural areas. It's something we develop in our Hungary property pack.

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 are the average prices per square meter for different land types across Hungary?

Location/Type	Resale Properties	New Buildings
Budapest (city average)	€2,200/m²	€2,900/m²
Regional centers (Debrecen, Pécs, Szeged)	€1,200/m²	€1,700/m²
Regional towns	€760/m²	€1,800/m²
Rural areas	€360/m²	€1,600/m²
Lake Balaton (average)	€1,750/m²	€2,200/m²
Agricultural land	€0.61/m²	Not applicable
Orchards and vineyards	€1.04-1.11/m²	Not applicable

What are the total costs associated with buying land in Hungary?

Total upfront costs typically range from 6-10% of the purchase price, with ongoing annual expenses remaining relatively modest compared to Western European standards.

Legal fees consume 1-1.5% of purchase price plus VAT, while property transfer tax adds 4% for properties under HUF 1 billion (2% above this threshold). Non-EU buyers pay additional HUF 50,000-65,000 for Property Purchase Permits, and land registry fees cost HUF 10,600-26,600 depending on processing speed.

Notary fees for mortgage transactions range €100-€200, while realtor commissions vary 1.5-5% though sellers typically pay these costs. Property valuations cost €200-€500 when required by lenders.

Annual property taxes remain low at €1-€3 per square meter depending on municipal rates. Capital gains taxes apply when properties are sold within 5 years of purchase. Some regions may introduce additional foreign buyer taxes or contributions starting July 2025.

Utility connections, maintenance costs, and insurance add ongoing expenses that vary significantly by property type and location. Urban properties generally incur higher ongoing costs than rural land.

Can foreigners buy land in Hungary with cash, and what are the implications?

Cash purchases are completely legal and often preferred by both buyers and sellers as they simplify transactions and strengthen negotiating positions.

Cash buyers avoid mortgage application processes, bank valuations, and lending delays that can extend purchase timelines by several months. Sellers often accept lower prices from cash buyers due to transaction certainty and faster closing schedules.

However, cash buyers must still demonstrate legitimate fund sources through bank statements, investment account records, or business sale documentation to satisfy anti-money laundering requirements. Large cash transactions may trigger additional scrutiny from Hungarian financial authorities.

Cash purchases eliminate mortgage-related costs including bank fees, property valuations, and loan insurance, reducing total transaction costs by 1-2% of purchase price. Buyers maintain full ownership without monthly mortgage payments or bank security interests.

The main disadvantage involves opportunity costs, as invested cash cannot generate returns in other investments, and buyers lose leverage benefits that mortgages can provide for portfolio diversification.

Are mortgages available to foreigners buying land in Hungary?

Hungarian banks offer mortgages to foreign buyers, though conditions are significantly stricter for non-residents compared to Hungarian citizens or residents.

Non-resident foreigners typically face higher down payment requirements of 30-50% compared to 10-20% for residents, along with more stringent income verification, employment stability requirements, and debt-to-income ratios. Interest rates for non-residents often run 1-2% higher than standard residential rates.

Required documentation includes employment contracts, salary certificates, tax returns for 2-3 years, bank statements, and translated/certified copies of all foreign documents. Some banks require Hungarian tax numbers and local bank accounts before approving loans.

1. **Maintain stable employment with documented income history**2. **Prepare comprehensive financial documentation well in advance**3. **Work with mortgage brokers familiar with foreign buyer requirements**4. **Consider establishing Hungarian residency to access better rates**5. **Shop multiple banks as policies vary significantly between institutions**

EU citizens generally receive more favorable terms than non-EU nationals, while Golden Visa investors may access preferential lending programs through participating banks. It's something we develop in our Hungary property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Global Citizen Solutions - Buying Property in Hungary
2. Immigrant Invest - Hungary Investment Guide
3. Bajcsay Law - Foreign Property Purchase Rules
4. Global Property Guide - Hungary Buying Guide
5. Immigrant Hungary - Real Estate Buying Guide
6. Golden Visa Lawyers - Property Purchase Permit Guide
7. Daily News Hungary - Foreign Property Purchase
8. E-Ingatlan Lawyers - Foreign Buyer Guide
9. Hungarian Law Blog - 2025 Foreign Property Regulations
10. Get Golden Visa - Hungary Golden Visa Program