Property Purchase Permit in Hungary: A Guide for Foreigners

Why is a Property Purchase Permit Important?

Hungary, like many countries, has regulations to govern property ownership by non-citizens. The Property Purchase Permit is a crucial document that grants foreigners the legal right to acquire real estate in the country. Without it, the property purchase cannot be registered, and ownership will not be legally recognized. The specific regulations are primarily outlined in the Housing Act and Government Decree 251/2014. 

Do You Need a Property Purchase Permit?

EU citizens enjoy a relatively straightforward process when buying property in Hungary for residential purposes. However, non-EU nationals generally need a permit from the local government office. Exceptions exist, such as dual nationals or UK citizens who held residence permits before Brexit.

Even if you are granted a Guest Investor Residency Permit, this subsequent process cannot be spared.

Acquiring the Permit: The Process

The permit application is handled by the government office of the capital city or county where the property is located. They assess various factors, including the applicant's identity, intention to transfer ownership, and whether the purchase harms municipal or public interests.

The process itself is rather simple:

1. Application: The application is submitted to the government office in the county where the property is located. It includes documents like proof of identity, purchase contract, property ownership certificate, and a criminal record certificate.
2. Review: The government office reviews the application, ensuring the buyer's identity is verifiable, the purchase is legitimate, and it doesn't harm municipal or public interests.
3. Decision: The decision is usually made within 45 days. If approved, the permit is issued, and the property purchase can proceed.

Application Requirements

To apply for a permit, you will typically need:

• Proof of administrative fee payment
• Passport or ID card/company certificate
• Property purchase contract
• Ownership certificate
• Criminal record certificate
• Power of attorney for a legal representative

Fees

Administrative Fee: HUF 50,000 per property for most foreigners.

Reduced Fee: HUF 10,000 for foreigners with free movement rights or those seeking Hungarian citizenship.

Key Takeaways

Buying property in Hungary as a foreigner involves legal complexities, particularly for non-EU nationals.

Understanding the permit process and associated regulations is crucial.

Seeking professional legal advice ensures a smooth and compliant property acquisition journey.