Real Estate Financing in Hungary: Guide and Tips

Published on October 3, 2025 and written by Cyril Jarnias

Real estate investment in Hungary, particularly in Budapest, is attracting more and more foreign investors seeking interesting opportunities. However, obtaining real estate financing in this Central European country can prove complex for non-residents. In this article, we will explore in detail the possibilities of real estate financing in Hungary for foreigners, the necessary documents, and the required conditions to realize your investment project.

Can foreigners really get a mortgage in Hungary?

The answer is yes, but with certain restrictions. Generally, it is extremely complicated for foreigners, even those with temporary residence permits in Hungary, to obtain a mortgage directly from Hungarian banks. This difficulty is explained by several factors:

• Hungarian banks are generally reluctant to lend to non-residents due to perceived risks.
• The language barrier can complicate administrative procedures.
• Requirements for guarantees and income are often stricter for foreigners.

However, there are alternatives to finance your real estate project in Hungary:

1. Financing in your home country A popular option is to obtain a mortgage in your country of residence, using an existing property as collateral. This method allows you to access potentially more favorable interest rates and better loan terms.

2. Partnership with a Hungarian resident Some investors choose to partner with a Hungarian resident to facilitate obtaining a local loan. However, this approach carries legal and financial risks that should be carefully evaluated.

3. Specialized broker services There are real estate loan brokers specializing in assisting foreign investors in Hungary. They can help you navigate the Hungarian banking system and find financing options suited to your situation.

The Winning File: Essential Documents for Your Loan Application

To maximize your chances of obtaining real estate financing in Hungary, you’ll need to prepare a strong application file. Here are the essential documents to prepare:

• Valid passport or identity card
• Recent proof of address (less than 3 months old)
• Hungarian foreigner identification number (NIE), if applicable

• Pay stubs from the last 3 months
• Tax returns from the last 2 years
• Bank statements from the last 6 months
• Employment contract or proof of professional activity

• Purchase agreement or promise to buy
• Property valuation by a certified expert
• Property title and history

• Detailed statement of your assets and liabilities
• Your savings and investment account statements
• Details of any current loans

5. Business plan (for rental investments) If you’re considering a rental investment, a detailed business plan presenting your rental income projections can strengthen your application.

6. Certified translations All documents not written in Hungarian must be accompanied by certified translations.

Keys to Success: Essential Conditions for Securing Your Real Estate Financing in Hungary

To increase your chances of obtaining real estate financing in Hungary as a foreigner, it’s important to understand and meet certain key conditions. Here are the main criteria lenders will consider:

• A regular and sufficient income to cover loan payments
• Stable employment situation (preferably permanent contract)
• Several years of income history

• Between 30% and 50% of the property purchase price
• Additional funds to cover transaction fees and taxes

• Provide evidence of regular repayments of previous loans
• Explain any irregularities in your credit history

• A mortgage on the property purchased in Hungary
• Guarantees on real estate properties in your home country
• Financial assets as collateral

• Detailed market study for rental investments
• Realistic financial projections
• A clear management plan for the property

• Familiarize yourself with market trends and promising investment areas
• Show that you’ve done thorough research on the property you wish to acquire

• Consider opening a Hungarian bank account before applying for a loan
• Demonstrate responsible financial management with this account

Alternative Strategies to Finance Your Hungarian Real Estate Dream

Faced with the challenges foreign investors may encounter in obtaining traditional real estate financing in Hungary, it’s wise to explore alternative strategies. Here are some options to consider:

• More familiar process in your native language
• Possibility of benefiting from more favorable interest rates
• Increased flexibility in loan terms

• Facilitates access to significant funds
• May offer more attractive interest rates
• Avoids complications related to international loans

• Facilitates access to Hungarian bank loans
• Brings valuable local expertise
• Shares investment risks

• Access to a diverse pool of investors
• Possibility to finance innovative projects
• Flexibility in financing structure

• Reduces the need for immediate bank financing
• Offers flexibility in payment terms
• Can be particularly interesting for properties requiring renovations

Real estate investment in Hungary offers attractive opportunities for foreign investors, despite financing challenges. By understanding local market requirements well, carefully preparing your application, and exploring various financing options, you can successfully realize your investment project.

The key to success lies in careful preparation, thorough understanding of the Hungarian market, and a flexible approach to financing. Remember that each situation is unique and market conditions can change rapidly. Stay informed about the latest trends and don’t hesitate to use local professionals to guide you throughout the process.

With perseverance and a well-thought-out strategy, your dream of real estate investment in Hungary can become a lucrative and rewarding reality.