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Real estate investment in Hungary

Hungary doesn’t limit sales of properties and land to foreigners, except for agricultural land and architectural monuments.

Statistics confirm the liquidity of investments: residential real estate prices grow by an average of 3.4% every quarter. Five years ago, an apartment of 100 m² cost an average of €111,000, and today it is sold for €206,000.

€2,062 Average price per 1 m²
of housing in Hungary
3,4% Average price per 1 m²
increase per quarter
3—31% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Hungary

€1 million

Apartment in the centre of Budapest with a view of the Danube or the historical centre

€500,000

Apartment in the centre
of Budapest

€200,000

Apartment outside the centre of Budapest

What do investors buy?

Real estate in the capital Budapest is in high demand.

Apartments

  • apartments
    in historical buildings
  • apartments

Houses

  • houses and villas
  • city mansions
  • and townhouses

Hungary residence permit or citizenship by real estate investment

Obtaining a Hungary residence permit or citizenship is not connected with purchasing real estate or investing.

Until 2017, Hungary had a permanent residence program for real estate investors. Program participants could obtain citizenship after five years of maintaining permanent residency. The program is not operating now.

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Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay a value-added tax for new builds or a transfer tax for resale properties. Notary and registration fees are additionally paid.

Associated costs range between 3.3% and 30.9% of the purchase agreement value. When buying a new apartment for €500,000, the investor will spend €641,750, including additional costs.

3.3—30.9% Of the contract value are related costs for the purchase of housing in Hungary
Purchase expenses
New buildings

VAT

27%
Secondary housing

Transfer tax

2—4%

Depends on the transaction amount 

Legal support of the transaction
1.3—3.8%

VAT included

Registration fee
0.01—0.05%

Taxes

The annual property tax depends on the municipality. The maximum tax rates depend on a particular municipality’s taxation system: €3.6 per 1 m² annually or 3.6% of the market property value.

If the owner rents out the property, they pay a 15% tax on the rental income.

€1,680 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€100—230 

per month

Internet, TV and telephone
€9—20 

per month

Real estate sellers pay a capital gains tax of 15% on the difference between the sale and purchase prices.

When selling through an agency, a realtor’s commission ranges between 4% and 6.5%. It is not necessary to involve an agent.

15% Capital gains tax on the sale
of real estate
Expenses on the sale
Capital gains tax

Paid on the difference between the purchase and sale prices

15%
Agency fee

If sold through an agency

4—6.5%

VAT included

Frequently asked questions

Can foreigners buy property in Hungary?

The sale of real estate and land to foreigners in Hungary is not limited, except for agricultural land and historic buildings.

How much does a house in Hungary cost?

The average price per 1 m² of housing in Hungary is €2,062. A 3-bedroom apartment in the centre of Budapest costs approximately €500,000.

Can a US citizen buy a house in Hungary?

Yes. The sale of real estate and land to foreigners in Hungary is not limited, except for agricultural land and historic buildings.

Can I get residency in Hungary if I buy a house?

In Hungary, foreigners do not receive a residence permit by real estate investment. But they are entitled to receive visa benefits. For example, a visa that allows multiple entries into Hungary.

How long does it take to buy a house in Hungary?

The entire process, from selecting a property to signing the agreement, takes 1—2 months.