Hungary has become an increasingly attractive destination for foreign real estate investors, offering a strategic location in Central Europe, growing property values, and potential pathways to European residency. Whether you’re looking to purchase a vacation home, investment property, or seeking residency through real estate investment, understanding the legal requirements and process is crucial for a successful transaction.

This guide outlines the main concerns foreign nationals need to know about buying property in Hungary, including legal requirements, the step-by-step process, costs, and important considerations.

Who Can Buy Property in Hungary?

EU Citizens and Nationals

EU citizens can purchase property freely in Hungary without requiring special permits or approvals. This includes citizens of all European Union member states, as well as nationals from European Economic Area (EEA) countries.

Non-EU/EEA Citizens

Non-EU/EEA nationals must obtain a purchase permit before they can legally acquire real estate in Hungary. This permit is mandatory and must be obtained before the the land registry registration is completed.

Dual Nationals

Individuals holding dual citizenship that includes an EU passport can purchase property using their EU citizenship status, bypassing the permit requirement.

EU/EEA Legal entities

Legal entities (regardless on their ownership structure) which are establish within EU/EEA countries can acquire real estates in Hungary.

Legal Requirements for Foreign Property Purchase

Property Purchase Permit

For non-EU/EEA citizens or legal entities permission from local authorities is required to buy property in Hungary. The permit application process involves several key requirements:

Application Process:

• Takes 45 days, but for security reasons extra deadlines are advised to be implemented in the sale & purchase contracts.

• Costs approximately €170

• Can be done without your presence

Permit Requirements:

• Proof of identity and nationality

• Signed precontract or signed final sale and purchase agreement

• Certificate of clean criminal record

• Property sheet of the real estate

• The government office examines that the acquisition of real estate by foreign individual are not against public interest

Restricted Areas

Certain areas in Hungary have limitations on foreign ownership, particularly agricultural land (with specific restrictions).

Step-by-Step Process for Buying Property in Hungary

Step 1: Property Search and Selection

Begin by identifying properties that meet your needs and budget.

Step 2: Engage a Hungarian Lawyer

Hiring a qualified Hungarian lawyer is not just recommended – it’s mandatory for signing the sale & purchase agreement. Your lawyer will:

• Conduct property due diligence

• Review all legal documents

• Represent you in the transaction

• Ensure compliance with Hungarian law

Step 3: Negotiate and Sign Purchase Agreement

Once the legal matters regarding the real estate is checked, you may proceed:

• Final price negotiations

• Signing the preliminary or the final purchase agreement

• Paying the deposit (typically 10% of purchase price)

• Set the final deadline completion date

Step 4: Apply for Purchase Permit (Non-EU Citizens)

Your lawyer will submit the purchase permit application to the relevant government office. This process requires:

• Completed application forms

• Supporting documentation

• Payment of application fees

• Wait for approval (typically 45 days)

Step 5: Land Registry Registration

The final step involves:

• Payment of remaining balance

• Transfer of ownership

• Registration in the land registry

Property becomes the buyer’s possession not when a purchase agreement is signed, but after a corresponding record is made in the land registry. This process can take several weeks to several months, and legal ownership is not established until registration is complete. It is important that after the full purchase has been paid by the buyer, the seller transfers the possession of the real estate, therefore you are able to use the property before the land registration is completed.

Costs Associated with Property Purchase

Purchase Price

Property prices in Hungary vary significantly by location, with Budapest commanding the highest prices. The average price for apartments in Budapest in 2025 is around €3,580/square meter, though prices in central Budapest, or the square meter prices of smaller apartments can be significantly higher.

Additional Costs and Fees

When budgeting for your property purchase, consider these additional expenses:

Legal and Administrative Fees:

• Lawyer fees: as per agreement

• Purchase permit fee: approximately €170 (non-EU citizens)

• Land registry office costs: €50-80

Taxes and Government Fees:

• Property transfer tax: 4% of property value

Financing Options for Foreign Buyers

Own Source Purchases

Many foreign buyers choose to purchase properties outright with their own source, as this:

• Simplifies the transaction process

• Eliminates financing complications

• Provides stronger negotiating position

• Reduces overall transaction time

Mortgage Financing

Some Hungarian banks offer mortgages to foreign nationals, though requirements are typically more stringent:

• Down payment requirements

• Proof of stable income

• Hungarian bank account

• Additional documentation requirements

Property Types Available to Foreigners

Residential Properties

• Apartments and condominiums

• Single-family houses

• Townhouses

• Vacation homes

Commercial Properties

• Office buildings

• Retail spaces

• Industrial properties

• Mixed-use developments

Investment Properties

• Rental properties

• Property development opportunities

• Commercial real estate investments

Benefits of Buying Property in Hungary

Strategic Location

Hungary’s central European location provides easy access to major European cities and markets.

Growing Property Values

The Hungarian real estate market is constantly rising, making it an attractive investment opportunity.

EU Access

Property ownership in Hungary can provide a foothold in the European Union for business and personal purposes.

Quality of Life

Hungary offers a high quality of life with relatively low living costs compared to Western European countries.

Rental Potential

Strong rental markets, particularly in Budapest and other major cities, provide income potential for investment properties.

Timeline Expectations

Typical Timeline for Property Purchase:

• Property search: 1-6 weeks

• Due diligence, negotiations, contract signature: 1-2 weeks

• Permit application (non-EU): 6-8 weeks

• Payment of the total purchase price (depends on whether you opt for a bank loan or have the funds already): 1-8 weeks

• Land registry registration: 4-8 weeks

Total Timeline: 4-8 months depending on complexity, bank loan and other factors.

Conclusion

Buying real estate in Hungary as a foreign person is an achievable goal with proper planning, professional guidance, and understanding of the legal requirements. While the process involves several steps and requires careful attention to legal details, Hungary’s growing property market and strategic location make it an attractive destination for international real estate investment.

The key to success lies in engaging qualified local professionals, conducting thorough due diligence, and understanding all costs and requirements upfront. With proper preparation and expert guidance, foreign nationals can successfully navigate the Hungarian property market and secure their ideal real estate investment.

Whether you’re seeking a vacation home, investment property, or considering residency options, Hungary offers opportunities for foreign property buyers willing to follow the established legal processes and work with experienced professionals.

Are you interested in real estate rental? Check out our related article!

This guide provides general information about buying property in Hungary as a foreign person. Property law can be complex and subject to change. Always consult with qualified Hungarian legal professionals before making any property purchase decisions. This information should not be considered legal advice and is current as of June 2025.

A Comprehensive Guide: How to Buy Real Estate in Hungary as a Foreign Person (2025) bejegyzés először Dr. Szijártó Marcell-én jelent meg.