Foreign Ownership Regulations in Hungary

Published on October 3, 2025 and written by Cyril Jarnias

Hungary, with its undeniably charming capital Budapest, is attracting an increasing number of foreign investors looking to acquire real estate. Whether for personal residence, rental investment, or commercial development, it’s important to thoroughly understand the regulatory framework governing property purchases by non-residents. This article outlines the key rules you need to know and guides you through the essential steps of the acquisition process.

A Legal Framework Open to Foreign Investors

Hungary offers a relatively favorable environment for foreign investors seeking to acquire real estate. Unlike some European countries, there are no major nationality-based restrictions for purchasing residential or commercial properties in urban areas.

However, some specific rules apply:

• European Union nationals enjoy the same rights as Hungarian citizens when purchasing real estate.
• Non-EU nationals must obtain prior authorization from the competent county administrative office to acquire property.
• Purchasing agricultural land is subject to stricter restrictions, with a 1-hectare limit for foreigners and the requirement to obtain special authorization.

It’s important to note that these rules may change. The Hungarian government has occasionally considered tightening purchase conditions for foreigners, particularly for properties located in Budapest’s historic center. Therefore, it’s recommended to verify the current legislation at the time of your acquisition project.

The Acquisition Process: Key Steps and Required Approvals

The process of purchasing real estate in Hungary for a foreigner involves several important steps:

1. Property Search and Selection: Engage a local real estate agent to assist with your search and price negotiation.

2. Legal Verification: A specialized attorney should conduct thorough due diligence to ensure there are no legal issues with the property (mortgages, ongoing disputes, etc.).

• Submit an application to the county administrative office where the property is located.
• Provide required documents: passport copy, proof of income, land registry extract, etc.
• Processing time is typically 30 to 60 days.

4. Preliminary Contract Signing: A deposit is usually paid at this stage (approximately 10% of the purchase price).

5. Securing Financing: If necessary, initiate procedures with Hungarian banks to obtain a mortgage loan.

6. Final Deed of Sale Signing: Conducted in the presence of a notary or attorney.

7. Property Registration: The deed of sale must be registered with the Hungarian land registry office.

Your Rights and Responsibilities as a Foreign Property Owner

Once you own property in Hungary, you generally enjoy the same rights as Hungarian citizens, but you must also fulfill certain obligations:

• Freely use, rent, or sell your property
• Benefit from legal protection of your property
• Obtain a residence permit if you invest a significant amount (typically at least €300,000)

• Pay property taxes and condominium fees
• Declare any rental income and pay corresponding taxes
• Comply with local urban planning and environmental regulations
• Inform authorities of any changes in property ownership or use

Keys to Success for Your Hungarian Real Estate Investment

To maximize your chances of success and avoid pitfalls, here are some essential tips:

1. Work with Local Professionals: Engage a specialized attorney in Hungarian real estate law and a reputable real estate agent to guide you throughout the process.

2. Study the Market Thoroughly: Take time to understand Hungarian real estate market trends, the most promising neighborhoods, and average prices.

3. Anticipate Additional Costs: Remember to include notary fees, registration taxes, and potential renovation costs in your budget.

4. Understand Tax Implications: Research the tax consequences of your investment, both in Hungary and your country of residence.

5. Think Long-Term: If considering rental, ensure the property meets local rental market expectations.

6. Stay Informed: Follow Hungarian economic and political news, as legislative changes could impact your investment.

By following these tips and strictly adhering to current regulations, you can fully benefit from your real estate investment in Hungary, whether for personal residence or generating attractive rental income.