Published on and written by Cyril Jarnias
Hungary, a landlocked country in the heart of Central Europe, might seem like an unexpected destination for purchasing waterfront property. Yet, this country is full of unique opportunities for real estate investors seeking exceptional aquatic settings. With its famous Lake Balaton, nicknamed the “Hungarian Sea,” and its numerous lakes and rivers, Hungary offers an idyllic environment for those dreaming of a waterfront residence. In this article, we will guide you through the best destinations for investment and provide you with all the keys to making your real estate purchase in Hungary.
Hungary’s Hidden Gems: Where to Invest for the Most Beautiful Waterfront Views
Hungary is full of attractive destinations for real estate investors looking for waterfront property—or rather, in this case, lakeside property. Here are some of the most sought-after regions:
1. Lake Balaton: The Pearl of Hungary
Lake Balaton, the largest lake in Central Europe, is undoubtedly the premier destination for real estate investors in Hungary. With its crystal-clear waters and fine sandy beaches, it offers an exceptional living environment and diverse investment opportunities.
- Siófok: Nicknamed the “Capital of Balaton,” this lively town is ideal for those seeking a festive atmosphere and well-developed tourist infrastructure.
- Balatonfüred: This elegant resort, known for its thermal springs and refined atmosphere, attracts an upscale clientele.
- Keszthely: With its magnificent Festetics Castle and preserved historic center, Keszthely appeals to history and culture enthusiasts.
2. Lake Velence: The Intimate Alternative
Located just 45 km from Budapest, Lake Velence is a prime destination for those wanting to combine proximity to the capital with a preserved natural setting. Its shallow waters and sandy beaches make it an ideal spot for families.
3. The Danube Region: Between History and Nature
The Danube, which flows through Hungary from north to south, offers spectacular landscapes and unique investment opportunities. The towns of Szentendre and Visegrád, located in the famous Danube Bend, are particularly prized for their historic charm and breathtaking views.
4. Lake Tisza: A Paradise for Nature Lovers
As the largest artificial lake in Central Europe, Lake Tisza is a true haven of peace for nature lovers. Its fish-rich waters and nature reserve make it a top choice for investors seeking tranquility and authenticity.
Good to Know:
Although Hungary is a landlocked country, its lakes and rivers offer investment opportunities comparable to those of traditional coastal destinations, with the advantage of a preserved natural environment and often more affordable prices.
Keys to Success: How to Realize Your Real Estate Dream in Hungary
Buying property in Hungary may seem complex for a foreigner, but with the right information and proper guidance, your project can come to fruition smoothly. Here are the key steps to follow:
1. Define Your Budget and Criteria
Before starting your search, it’s essential to clearly define your budget and criteria. Real estate prices in Hungary vary significantly by region and property type. In Budapest, the median price for an apartment for sale is about 1,703,944 HUF/m² (approximately €4,500/m²), but prices can be considerably lower in lake regions.
2. Hire a Local Real Estate Agent
To effectively navigate the Hungarian real estate market, it’s highly recommended to hire a local real estate agent. They can guide your search, inform you about market specifics, and help you negotiate the best price.
3. Obtain a Hungarian Tax Number
To purchase real estate in Hungary, you’ll need to obtain a Hungarian tax number. This process can be done through the Hungarian tax authority (NAV) or with the help of your real estate agent.
4. Consult a Specialized Lawyer
It’s strongly recommended to hire a lawyer specialized in Hungarian real estate law to assist with legal and administrative procedures. They can verify the legality of the transaction, draft the sales contract, and ensure your interests are protected.
5. Open a Hungarian Bank Account
To facilitate payment and money transfers, it’s advisable to open a bank account in Hungary. This will also make it easier to manage expenses related to your property after the purchase.
6. Conduct Thorough Due Diligence
Before finalizing the purchase, ensure you conduct thorough due diligence. This includes verifying the property title, any existing mortgages or charges on the property, and the general condition of the property.
7. Sign the Sales Contract
Once all checks are completed, you can proceed to sign the sales contract before a Hungarian notary. Payment is typically made in two installments: a deposit upon signing the preliminary agreement, and the balance upon signing the final deed.
8. Register Your Property
After signing the deed of sale, your lawyer or real estate agent will handle registering your new property with the Hungarian land registry.
Good to Know:
Although citizens of the European Union do not need special permission to buy real estate in Hungary, it’s important to familiarize yourself with local laws and regulations to avoid any surprises.
The Hidden Advantages of Real Estate Investment in Hungary
Investing in waterfront (or rather lakeside) real estate in Hungary offers many often-overlooked benefits:
1. A Dynamic Real Estate Market
The Hungarian real estate market has experienced steady growth for several years, offering promising prospects for capital gains.
2. Attractive Prices
Compared to other European destinations, real estate prices in Hungary remain relatively affordable, especially in lake regions.
3. Significant Rental Potential
With the growth of tourism in Hungary, particularly around Lake Balaton, lakeside properties offer excellent potential for seasonal rentals.
4. Favorable Tax Environment
Hungary offers an attractive tax environment for real estate investors, including a capital gains tax rate that gradually decreases over the years of ownership.
5. An Exceptional Quality of Life
Beyond financial aspects, investing in Hungary also means acquiring a unique living environment, featuring preserved nature, renowned thermal baths, and rich cultural heritage.
Good to Know:
Hungary is renowned for its thermal springs and spa resorts. Investing in property near these sites can be particularly profitable, both for rental purposes and potential resale.
In conclusion, buying waterfront (or rather lakeside) property in Hungary represents a unique investment opportunity in a country at the heart of Europe, offering an exceptional living environment and promising economic prospects. Whether you’re looking for a vacation home or a rental investment, Hungary will captivate you with its diverse aquatic landscapes, rich cultural heritage, and dynamic real estate market. With proper preparation and guidance from local professionals, your dream of owning waterfront property in Hungary can become a reality, providing you with a peaceful haven in the heart of Central Europe.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
