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
Buying property in Hungary as a foreigner is possible but comes with specific rules depending on your nationality.
EU citizens enjoy nearly the same rights as Hungarian nationals, while non-EU buyers must obtain a purchase permit before completing any transaction. The process typically takes 30-60 days and requires mandatory legal representation throughout.
If you want to go deeper, you can check our pack of documents related to the real estate market in Hungary, based on reliable facts and data, not opinions or rumors.
As of June 2025, foreigners can purchase residential property in Hungary, with EU citizens facing minimal restrictions and non-EU citizens requiring a government permit.
Budapest property prices average €2,400-€5,000 per square meter for new builds, while existing properties cost €1,500-€3,000 per square meter, with strong rental yields driven by tourism and expat demand.
| Aspect | EU Citizens | Non-EU Citizens |
|---|---|---|
| Purchase Permit Required | No | Yes (30 days processing) |
| Residency Required | No | No |
| Agricultural Land Purchase | Restricted | Generally Prohibited |
| Mortgage Availability | Yes (up to 70% LTV) | Yes (with residence permit) |
| Property Transfer Tax | 4% | 4% |
| Legal Representation | Mandatory | Mandatory |
| Total Closing Costs | 6-8% of purchase price | 6-8% of purchase price |
Can foreigners really buy property in Hungary without being citizens?
Yes, foreigners can absolutely buy property in Hungary, but the rules differ significantly based on your nationality.
EU, EEA, and Swiss citizens can purchase residential and commercial properties under the same conditions as Hungarian citizens, with no special permits required. They simply need to show their passport and proceed with the standard buying process.
Non-EU citizens face additional requirements and must obtain a property purchase permit from the local government office before completing any transaction. This permit typically takes 30 days to process and costs between €130-€161 (HUF 50,000-65,000).
Agricultural land and protected heritage properties remain off-limits to most foreigners, regardless of nationality. These restrictions aim to preserve Hungary's agricultural sector and cultural heritage for domestic ownership.
It's something we develop in our Hungary property pack.
Do I need Hungarian residency or a visa to purchase real estate?
No residency or visa is required to buy property in Hungary as a foreigner.
You can purchase real estate as a tourist or visitor without any long-term legal status in the country. Property ownership itself doesn't grant you residency rights, though it can support a future residency application if you decide to relocate.
Many foreign investors buy Hungarian properties purely for investment purposes without ever becoming residents. The property purchase process is completely separate from immigration procedures.
Can I buy Hungarian property remotely without traveling there?
Yes, you can complete the entire property purchase remotely through a power of attorney.
By appointing a local Hungarian lawyer (which is mandatory anyway), you can authorize them to act on your behalf for all aspects of the transaction. They'll handle document submissions, government office visits, and the final signing at the Land Registry.
Your lawyer will need a notarized power of attorney document, which you can arrange at a Hungarian consulate in your home country or through an apostilled document if your country is part of the Hague Convention.
Many international buyers successfully purchase Hungarian properties without ever setting foot in the country, though visiting to inspect the property beforehand is always recommended when possible.
What documents do I need and what's the exact buying process?
Non-EU citizens need to prepare a comprehensive document package before starting the purchase process.
The required documents include a certified copy of your passport, a certificate of good conduct (criminal record check), the preliminary purchase agreement, a recent title deed (not older than 21 days), proof of payment for the permit application fee, and a completed application form for the property purchase permit.
| Step | Action Required | Timeline |
|---|---|---|
| 1. Property Search | Find property through agent or online | Variable |
| 2. Hire Lawyer | Engage mandatory legal representation | 1-2 days |
| 3. Preliminary Agreement | Sign contract and pay 5-15% deposit | 1-3 days |
| 4. Due Diligence | Lawyer checks property status and debts | 3-5 days |
| 5. Purchase Permit | Apply for permit (non-EU only) | 30 days |
| 6. Final Contract | Sign agreement and transfer funds | 1 day |
| 7. Registration | Land Registry records new ownership | 15-30 days |
The entire process typically takes 45-60 days for non-EU citizens and 15-30 days for EU citizens who don't need permits.
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Is hiring a lawyer mandatory or just recommended?
Hiring a lawyer is absolutely mandatory in Hungary - it's not optional.
Hungarian law requires that all property sale agreements must be drafted or countersigned by a licensed Hungarian lawyer. No property transaction can be legally completed without their involvement, as they're the only professionals authorized to submit documents to the Land Registry.
Your lawyer will conduct due diligence on the property, checking for debts, liens, or legal issues. They'll verify the seller's ownership rights, ensure all utility bills are paid, and confirm there are no outstanding property taxes or other encumbrances.
Expect to pay 1-1.5% of the property purchase price in legal fees, plus 27% VAT. For a €200,000 property, this means €2,000-€3,000 in legal fees plus €540-€810 in VAT.
Choose an independent lawyer rather than one recommended by the seller or real estate agent to ensure your interests are fully protected.
What are all the taxes and fees when buying and selling?
The Hungarian property market has straightforward but substantial transaction costs that buyers must budget for.
When purchasing property, you'll pay a 4% property transfer tax on the purchase price, which is one of the lowest in Europe. Legal fees add another 1-1.5% plus 27% VAT, while real estate agent commissions (if not covered by the seller) range from 2-5%.
| Cost Type | Amount | Who Pays |
|---|---|---|
| Property Transfer Tax | 4% of purchase price | Buyer |
| Legal Fees | 1-1.5% + 27% VAT | Buyer |
| Purchase Permit (non-EU) | €130-€161 | Buyer |
| Land Registry Fee | €19.30 (HUF 6,000) | Buyer |
| Notary Fee | €6.50 (HUF 2,000) | Buyer |
| Property Valuation | €200-€500 | Buyer (if required) |
| Annual Property Tax | €1-€3 per m² | Owner |
| Capital Gains Tax | 15% (exempt after 5 years) | Seller |
| Rental Income Tax | 15% | Owner |
When selling, you'll pay 15% capital gains tax on any profit, but this is completely waived if you've owned the property for more than 5 years. Used residential properties are exempt from VAT, though new builds may include it in the purchase price.
Can foreigners get Hungarian mortgages and what are the conditions?
Yes, foreigners can obtain mortgages from Hungarian banks, but the conditions are more restrictive than for locals.
Major banks like OTP Bank, K&H Bank, and Raiffeisen Bank offer mortgages to foreigners, typically requiring a valid residence permit and proof of income. You'll need to put down at least 30% (maximum 70% loan-to-value ratio), and interest rates currently range from 6% to 10% for 20-year terms.
Banks accept foreign income but require certified translations of all documents. You'll need proof of employment, bank statements from the last 6 months, your purchase contract, and identification documents.
Currency risk is a significant consideration - most mortgages are in Hungarian forints, which has historically depreciated against major currencies. Some banks offer euro-denominated loans but at higher interest rates.
As we reach mid-2025, the Hungarian central bank's monetary policy remains relatively tight, keeping mortgage rates elevated compared to Western European standards.
What mistakes do foreign buyers commonly make?
The most critical mistake is not hiring an independent lawyer from the start.
Many buyers rely on lawyers recommended by sellers or agents, creating potential conflicts of interest. Always choose your own legal representation to ensure your interests are protected throughout the transaction.
- Paying deposits before legal due diligence - never transfer money until your lawyer confirms the property is free of debts and legal issues
- Not checking for utility debts - unpaid bills can become your responsibility after purchase
- Ignoring property encumbrances - liens, mortgages, or usage rights that weren't properly investigated
- Relying solely on online portals - visit properties in person and work with reputable local agents
- Underestimating total costs - budget 6-8% above purchase price for all fees and taxes
- Not getting professional property valuations - especially important for mortgage applications
- Assuming processes work like your home country - Hungarian property law has unique requirements
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 Hungarian areas are most popular with expats and investors?
Budapest dominates the expat and investor market, attracting over 70% of foreign property buyers.
The capital offers the strongest rental yields, best infrastructure, and most liquid property market in Hungary. Districts V, VI, and VII in central Budapest are particularly popular for short-term rentals, while Districts II and XII attract families seeking quieter residential areas.
Lake Balaton, Hungary's "inland sea," ranks second for foreign buyers, especially Germans and Austrians purchasing holiday homes. The northern shore towns like Balatonfüred and Tihany command premium prices, while the southern shore offers better value.
University cities like Szeged, Pécs, and Debrecen attract investor interest due to stable student rental demand. These cities offer yields of 5-7% annually with much lower entry prices than Budapest.
Eger and its surrounding wine region appeals to lifestyle buyers seeking rural charm and tourism potential, with properties often including vineyards or wine cellars.
Where are the best opportunities for growth and rental income?
As of June 2025, Budapest's outer districts (XIII, XIV, and XI) offer the best balance of capital growth potential and rental yields.
These areas benefit from ongoing urban development, new metro lines, and significantly lower prices than the city center. Properties here cost €1,800-€2,500 per square meter compared to €3,000-€5,000 in central districts.
Lake Balaton's southern shore presents excellent value for tourism-focused investments. Towns like Siófok and Balatonlelle offer properties 30-40% cheaper than the northern shore but with similar rental potential during the May-September season.
Győr, halfway between Budapest and Vienna, emerges as a dark horse for investors. The city's automotive industry (Audi's largest European plant) drives steady rental demand from international workers, while prices remain 40% below Budapest levels.
It's something we develop in our Hungary property pack.
University towns continue offering stable 5-7% yields. Szeged particularly stands out with its "City of Sunshine" reputation, attracting both students and young professionals.
How much does Hungarian real estate cost in different cities?
Hungarian property prices vary dramatically between Budapest and regional cities, offering opportunities at every budget level.
Budapest commands the highest prices nationally, with new apartments averaging €2,400-€5,000 per square meter in premium districts. Existing properties in the capital range from €1,500-€3,000 per square meter, depending on location and condition.
| City/Region | New Properties (€/m²) | Existing Properties (€/m²) | Average 70m² Apartment |
|---|---|---|---|
| Budapest Center | €3,500-€5,000 | €2,500-€3,500 | €175,000-€245,000 |
| Budapest Outer | €2,400-€3,500 | €1,500-€2,500 | €105,000-€175,000 |
| Lake Balaton North | €2,500-€3,500 | €1,800-€2,500 | €126,000-€175,000 |
| Lake Balaton South | €2,000-€2,800 | €1,200-€1,800 | €84,000-€126,000 |
| Debrecen | €1,800-€2,500 | €1,000-€1,600 | €70,000-€112,000 |
| Szeged | €1,500-€2,500 | €1,100-€1,800 | €77,000-€126,000 |
| Győr | €1,700-€2,400 | €1,200-€1,700 | €84,000-€119,000 |
| Pécs | €1,400-€2,200 | €900-€1,500 | €63,000-€105,000 |
| Eger | €1,200-€2,000 | €900-€1,500 | €63,000-€105,000 |
The national average for new properties stands at €2,400 per square meter, while existing properties average €1,100 per square meter. Rural properties and those requiring renovation can be found for under €500 per square meter.
What long-term trends will impact Hungarian property values?
Hungary's property market in 2025 benefits from several powerful long-term drivers that suggest continued growth.
Tourism recovery has exceeded pre-pandemic levels, with Budapest welcoming over 5 million visitors annually and Lake Balaton seeing record summer occupancy rates. This surge drives short-term rental demand and supports property values in key tourist areas.
EU funding continues flowing into infrastructure projects, including the Budapest-Belgrade railway upgrade and M4 metro extension. These improvements enhance property values along new transport corridors and make previously peripheral areas more accessible.
The tech sector's expansion in Budapest creates sustained demand for modern apartments. Major companies like Blackrock, Morgan Stanley, and numerous startups employ thousands of well-paid professionals seeking quality housing.
Limited new construction in central Budapest - due to heritage protections and lack of available land - maintains upward pressure on existing property prices. Annual new supply adds less than 2% to the total housing stock.
However, the weakening forint poses risks for foreign investors. The currency depreciated 15% against the euro over the past two years, potentially eroding returns when converted back to foreign currencies.
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.
Hungary's property market offers compelling opportunities for foreign buyers in 2025, with EU citizens enjoying seamless access and non-EU buyers facing manageable permit requirements.
Success hinges on understanding the mandatory legal requirements, budgeting for 6-8% in transaction costs, and choosing between Budapest's strong rental yields or regional cities' better value propositions.
Sources
- Ecovis Global - Buying Property in Hungary as a Foreigner
- Global Realty Group - Process of Buying Property in Hungary
- Mercury Estate - Taxes and Expenses in Hungary
- Global Property Guide - Hungary Price History
- Imigrant Hungary - Foreign Property Purchase Guide
- Hungary Golden Visa - Real Estate Market Analysis
- Trading Economics - Hungary GDP Growth
- Statista - Travel and Tourism in Hungary
- Daily News Hungary - Construction and Housing Prices
- Numbeo - Hungary Property Investment Data