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dr. Surányi Balázs

Dr. Surányi Balázs

• 2 minutes read

Paying with Cryptocurrency for Real Estate in Hungary: What You Need to Know

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Paying with crypto for real estate?

Real estate investment in Hungary remains a popular choice between guest investors, thanks to its accessible purchase process. But the financial world is changing, and innovative payment methods like cryptocurrency are gaining traction.

This leads to important questions: Is using cryptocurrency for real estate purchases legal in Hungary? What are the implications for buyers, sellers, and their legal representatives?

Table Of Contents

Why Use Cryptocurrency for Real Estate?

Speed & Efficiency: Cryptocurrency transactions can be completed in minutes, even across borders. This contrasts with traditional bank transfers that might take days.

Reduced Costs: Cryptocurrency transaction fees are generally lower, especially for larger amounts, which can be a significant saving for buyers.

Privacy: While transactions are recorded on the blockchain, they don't always reveal the parties' identities.

Investor Flexibility: Many investors hold significant cryptocurrency assets. Using these directly streamlines the purchase process.

While Hungarian law doesn't explicitly prohibit using cryptocurrency for real estate, it's crucial to note that cryptocurrency is not considered legal tender. Therefore, a clear agreement between the buyer and seller on the type and monetary value of the cryptocurrency used is vital.

Taxes & Cryptocurrency

The Hungarian tax system primarily operates in forints. Even when paying with Bitcoin, the transaction's forint equivalent is used for tax purposes. This impacts transfer duty, personal income tax, and other relevant levies.

Escrow & Cryptocurrency

Escrow, a secure legal process where a third party holds assets until conditions are met, can accommodate cryptocurrency transactions. However, it's important to use an attorney with a secure cryptocurrency platform. Contingency plans, such as verifying wallet addresses and seeking seller confirmation, are crucial.

What if the Deal Falls Through?

Real estate deals can sometimes fail. In such cases, it's recommended to preemptively decide whether the refund will be in traditional currency or the original cryptocurrency. Using escrow can provide additional security in ensuring the return of funds.
 

Conclusion

Cryptocurrency presents an exciting new possibility for real estate transactions in Hungary - even for investors considering the Hungarian Golden Visa opportunities. Understanding the legal landscape, tax implications, and escrow considerations is paramount. 

Want to consult with a legal professional for personalized advice? Contact us!

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