| How to Purchase Real Estate in Hungary as a Foreign Individual |
The Conditions of Property Purchase
Foreign individuals and organizations may purchase residential, industrial or
commercial real property in Hungary.
Foreigners may acquire agricultural land only if the land is not greater than 6000 sq
meters and if the land lies outside residential or commercial areas (outside villages).
Foreigners who have been living in Hungary for at least 3 years or longer, and who
make a living from agricultural activity, may purchase agricultural land in Hungary.
Hungarian law says that a non-European citizen must apply for a permission from
the local authorities in order to purchase property in Hungary:
"The authorization required for the acquisition of real estate by foreign legal entities or
natural persons, may be granted by the head of the competent metropolitan or county
administration office, if it does not interfere with any municipal or other public interests."
Furthermore: "In order to establish whether the acquisition of the real estate interferes
with any municipal interest, the declaration of the mayor of the settlement's local
government (metropolitan district local government) competent at the location of the
real estate shall be applied for."
(Government Decree No. 7/1996 (I.18.) on the Acquisition of Real Estate by Foreigners)
Since May 1, 2004, EU citizens who have been continuously living in Hungary for at
least 4 years, may purchase residential property in Hungary WITHOUT a special
permission (Tv.88/A, section 2).
The process of the approval takes 4 - 8 weeks, and the approval is usually given. The
general condition of such approval is that the foreign ownership will not be "against
public interest".
Foreign individuals and organizations may purchase residential, industrial or
commercial real property in Hungary.
Foreigners may acquire agricultural land only if the land is not greater than 6000 sq
meters and if the land lies outside residential or commercial areas (outside villages).
Foreigners who have been living in Hungary for at least 3 years or longer, and who
make a living from agricultural activity, may purchase agricultural land in Hungary.
Hungarian law says that a non-European citizen must apply for a permission from
the local authorities in order to purchase property in Hungary:
"The authorization required for the acquisition of real estate by foreign legal entities or
natural persons, may be granted by the head of the competent metropolitan or county
administration office, if it does not interfere with any municipal or other public interests."
Furthermore: "In order to establish whether the acquisition of the real estate interferes
with any municipal interest, the declaration of the mayor of the settlement's local
government (metropolitan district local government) competent at the location of the
real estate shall be applied for."
(Government Decree No. 7/1996 (I.18.) on the Acquisition of Real Estate by Foreigners)
Since May 1, 2004, EU citizens who have been continuously living in Hungary for at
least 4 years, may purchase residential property in Hungary WITHOUT a special
permission (Tv.88/A, section 2).
The process of the approval takes 4 - 8 weeks, and the approval is usually given. The
general condition of such approval is that the foreign ownership will not be "against
public interest".
The above quoted legal lingo actually means that in case of international buyers, apart
from the signing and submitting the Purchase Contract to the Land Registry Office, the
relevant Administrative Office's approval (Közigazgatási Hivatal) is the further condition
of acquiring the ownership of a real estate.
Let's get a little more practical here:
What to do to receive approval of purchase
Once a property is selected, you will need to hire a competent lawyer. A lawyer's
participation is required to prepare and counter-sign your purchase contract anyway. A
competent lawyer in your case means a lawyer who has experience and knowledge to
prepare a purchase contract that contains the necessary extras to protect you in case
there is any problem with your approval. It is also nice and convenient if the same
lawyer is willing to go ahead and write the application for you, and actually turn it in to
the right authorities. (If you hire me as your buyer's agent, I will of course guide you to
the competent lawyer I recommend for my clients.)
In an ideal case then, your competent lawyer applies for the approval first from the
mayor of the Local Government (Önkormányzat), then from the Administration Office
(Közigazgatási Hivatal) of the county. If these two bureaucratic organizations assert
that the purchase "does not interfere with any municipal or other public interests," your
purchase permit is granted.
Only then can you, as new owner, be registered in the Land Registry, and only then
does the actual Purchase Contract come into effect.
Each of these two offices may take as long as 30 days to issue the permission.
Because of the time factor, the seller must be informed of the process before the
Purchase Agreement is signed.
from the signing and submitting the Purchase Contract to the Land Registry Office, the
relevant Administrative Office's approval (Közigazgatási Hivatal) is the further condition
of acquiring the ownership of a real estate.
Let's get a little more practical here:
What to do to receive approval of purchase
Once a property is selected, you will need to hire a competent lawyer. A lawyer's
participation is required to prepare and counter-sign your purchase contract anyway. A
competent lawyer in your case means a lawyer who has experience and knowledge to
prepare a purchase contract that contains the necessary extras to protect you in case
there is any problem with your approval. It is also nice and convenient if the same
lawyer is willing to go ahead and write the application for you, and actually turn it in to
the right authorities. (If you hire me as your buyer's agent, I will of course guide you to
the competent lawyer I recommend for my clients.)
In an ideal case then, your competent lawyer applies for the approval first from the
mayor of the Local Government (Önkormányzat), then from the Administration Office
(Közigazgatási Hivatal) of the county. If these two bureaucratic organizations assert
that the purchase "does not interfere with any municipal or other public interests," your
purchase permit is granted.
Only then can you, as new owner, be registered in the Land Registry, and only then
does the actual Purchase Contract come into effect.
Each of these two offices may take as long as 30 days to issue the permission.
Because of the time factor, the seller must be informed of the process before the
Purchase Agreement is signed.
Here is what you will need to apply for the
approval:
approval:
- Application;
- Certificate of your origin (certified copy
of your passport);
- One original copy of the signed and
countersigned Purchase Contract;
- One original copy of the Title (tulajdoni
lap) of the property, issued less than
30 days ago;
- Approximately HU Ft 60,000.00 for
different official duty stamps for
documents submitted for you in the
process. (This is not the fee of the real
estate lawyer involved!)
For a certified copy of your passport, you must
visit a public notary. (This service is included
in my buyer agency services if you are in
Hungary.)
English-speaking notaries in Budapest >>>
visit a public notary. (This service is included
in my buyer agency services if you are in
Hungary.)
English-speaking notaries in Budapest >>>
| Property acquisition in Hungary, purchasing real estate in Hungary, buying real property in Hungary, How to purchase real estate in Hungary, purchasing of property, acquisition of property, permission, permit, investing in real estate, commercial real property, municipality, Eu citizens, European Union |
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| Disclaimer: the article serves merely information purposes. Due to its extent, it is neither an all round information nor shall it be qualified as legal advice. |
Absent buyer
Do you want to purchase a house or an apartment in Hungary, but you can not stay in
Hungary for the procedure?
Others have done this before you. I can not describe the entire process here on this
page, but contact me if you need assistance in this regard, preferably by email, and I
can certainly help you! It can be done in a legal, orderly and safe way.
Do you want to purchase a house or an apartment in Hungary, but you can not stay in
Hungary for the procedure?
Others have done this before you. I can not describe the entire process here on this
page, but contact me if you need assistance in this regard, preferably by email, and I
can certainly help you! It can be done in a legal, orderly and safe way.