The Foreign Investor's Playbook: A Step-by-Step Guide to Acquiring Property in Budapest

For many foreign investors, the prospect of purchasing property in a foreign country can seem daunting, marked by unfamiliar laws and bureaucratic processes. In Hungary, however, the system is well-defined and transparent, especially when navigated with professional guidance. This guide demystifies the acquisition process, providing a clear, step-by-step playbook for international buyers.

Understanding the Rules of Entry

The first step is to understand who can buy property and under what conditions. The rules create a clear distinction based on nationality:

• EU/EEA and Swiss Citizens: Nationals from these countries enjoy the same property acquisition rights as Hungarian citizens. They can purchase residential and commercial property freely without the need for any special permits.   

  
  

• Non-EU/EEA Citizens: All other foreign nationals must obtain a specific property acquisition permit from the relevant government administrative office before a purchase can be finalized.   

  
  

It is important to note that there are restrictions on certain types of property. Agricultural land and protected heritage assets are generally off-limits to all foreign buyers.   

The Mandatory Role of a Hungarian Lawyer

Under Hungarian law, every real estate transaction must be overseen and countersigned by a qualified Hungarian lawyer or civil law notary. This is not an optional step; a lawyer is the only professional authorized to prepare the official contracts and submit the necessary documentation to the Land Registry for the transfer of title.   

This legal requirement is a cornerstone of the system's integrity. The lawyer's primary role is to protect the buyer's interests. This includes conducting thorough due diligence to ensure the property is free from any debts, liens, or legal disputes, verifying the seller's ownership rights, and confirming that all utility bills and taxes are settled. For this reason, it is paramount that investors engage their own    

Independent lawyer, rather than using one recommended by the seller or their agent, to avoid any potential conflicts of interest.   

The Step-by-Step Purchase Process

1. Property Search and Offer: The initial phase involves identifying a suitable property and negotiating a price with the seller.

2. Engage Your Lawyer: Once a price is agreed upon, the first formal step is to hire your independent lawyer to represent you.

3. Preliminary Sales Contract and Deposit: Your lawyer will draft a preliminary sales contract and deposit. This is a legally binding contract that outlines all terms of the sale. Upon signing, the buyer typically pays a deposit of 10-15% of the purchase price into the lawyer's escrow account to secure the property.   

4. Due Diligence: With the preliminary contract signed, the lawyer conducts comprehensive due diligence on the property's legal status.

5. Acquisition Permit (for Non-EU Citizens): Concurrently, your lawyer will submit the application for the property acquisition permit to the local Government Office. This process typically takes between 30 and 45 days. The application requires a certified copy of your passport, a certificate of good conduct (criminal record check), the preliminary contract, and a fee of HUF 50,000-65,000 (€130-€161). As part of the review, the office will consult the local municipality to ensure the purchase does not conflict with public interest.   

6. Final Contract and Payment: Once the permit is granted (for non-EU buyers), the final sales contract is signed. The buyer then transfers the remaining 90% of the purchase price.

7. Registration of Ownership: The lawyer submits the final contract to the Land Registry to officially register the change of ownership. This final step can take between 15 and 30 days, after which you receive the official title deed (Tulajdoni Lap) and become the legal owner.   

   
   

Understanding the Costs

Beyond the purchase price, investors must budget for closing costs, which typically amount to 6-8% of the property's value. These include:   

• Property Transfer Tax (Stamp Duty): A flat rate of 4% of the property's market value, payable by the buyer.   

  
  

• Legal Fees: Typically 1-1.5% of the purchase price, plus 27% VAT.   

  
  

• Administrative Fees: Includes the non-EU permit fee, Land Registry fees (approx. HUF 6,000-10,600), and notary fees.   

  
  

The Golden Visa and Residency

Hungary's Guest Investor Program offers a path to residency for non-EU nationals. While an initial plan for a €500,000 direct property purchase has been postponed or cancelled, the primary route remains a €250,000 investment into a government-approved real estate investment fund. It is crucial to note that any form of residency permit requires the holder to have a registered address in Hungary, which can be either a rented or an owned property.   

While the permit process for non-EU buyers might seem like a hurdle, it serves a valuable function. The mandatory 30-45 day waiting period acts as a built-in "cooling-off" and due diligence phase. It prevents impulsive, emotionally-driven decisions and forces a structured, legally vetted review of the asset. This procedural safeguard can protect inexperienced investors from common pitfalls, such as undisclosed property debts or title disputes, making it an essential risk-management feature of the market.