Real estate investment in Hungary

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.

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.

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.