Investing and buying Real Esate in Hungary
Buying property in Hungary can serve as one of the main justifications used to obtain residency in European Union. Prices for houses and apartments in Hungary are significantly lower than in other European countries, whereas the quality of life, good climate, clean air and ubiquitous thermal waters are great advantages. If you choose comfort and safety, then Hungary will become a cozy home for you.
The real estate market is constantly growing, gaining popularity among Germans, Dutch, Israelis, Russian and Chinese nationalities, and there are good many reasons for this. Apartments in Budapest city center and houses in the resort areas are well rented for short and long term periods, and property prices are steadily growing. Buying a property in Hungary is a profitable investment that allows you to apply for a residence permit and permanent residency in European Union.
Resident Help team will advise you on prices and locations, helping you to choose the best option for your purpose. We can also provide transportation and assistance in finding property around Hungary. Our team will negotiate with the seller and prepare a profitable deal.
Legal services, registration of property rights
According to the common law, the deal of buying real estate in Hungary is proceeded through a lawyer office. Resident Help will provide you with an experienced English-speaking lawyer for a reasonable price. In the best interests of the buyer, the registration of property is managed and payed by the investor.
The minimum payment for lawyer's services is 300 Euro + VAT (in Hungary - 27%). The registration fee depends on the cost of a registered property: estates from 50 000 to 100 000 Euro will cost 0.1% of the transaction amount, from 100 to 200 000 Euro - 0.75 % of the transaction amount. For registration of elite real estate from 200 000 Euro, registration services are paid at the rate of 0.5% of the value of the object.
According to Hungarian legislation, a foreigner real-estate buyer in Hungary must obtain permission to purchase property. It can take from 30 to 60 days for the authorities to issue a decision. The buyer is depositing 10% of the total purchase value according to Escrow Agreement to the lawyer’s business account, while our office prepares the required documents for obtaining the permit, including a certificate of non-conviction in Hungary. In case the permit denied, the deposited amount is fully refunded to the client.
This is a standard procedure, and until now, there were no cases when the mayor's office would refuse to issue a permit. Good news are, if the property is registered as a business investment for a registered company or legal entity, the buyer is not obliged to apply for permission.
The attorney's responsibilities also include checking the property for legal clearance, registering the property under a new owner and managing it in the Land Register Office.
A mandatory one-time tax on the purchase of real estate in Hungary is 4% of the property price. If the real estate, purchased in Hungary, have been more than five years under the same owner, the seller is exempted from paying income tax when selling or exchanging it.
