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Property Purchase Costs in Hungary

Purchasing real estate in Hungary can be a rewarding experience, but it's important to understand the various costs involved beyond the purchase price in Hungary. Here's a breakdown of the typical expenses:

Main Costs to Consider:

  • Legal Fees: mostly a specific % of the purchase price, plus VAT if applicable. Bilingual legal fees might be higher.
  • Transfer Tax: 4% of the property's market value.
  • Realtor's Commission: 1.5% to 5% of the purchase price, plus VAT.
  • Land Registry Fees: 10,600 HUF for standard registration, with an additional fee for expedited registration.
  • Property Acquisition Permit: 50,000 HUF for non-EU citizens.

Here are some key factors to keep in mind:

set table

Property acquisition costs and more

Table Of Contents

Transfer Tax (Purchase Tax)

This is the main tax you'll encounter when buying property. The general rate is 4% of the property's market value. However, there's a progressive scale for higher-value properties:

Properties up to 1 billion HUF: 4%

Properties over 1 billion HUF: 2% on the amount exceeding 1 billion HUF (maximum tax of 200 million HUF)

Building Tax

This is a local tax is yearly levied by municipalities. Most residential properties are exempt, but if you register a business at your home address, you'll likely have to pay it. The tax is usually based on the property's size and can be up to 1,100 HUF per square meter.

Why You Need a Lawyer

Hungarian law requires a lawyer or civil law notary to complete the property transfer process. Their expertise protects your interests and ensures legal compliance.

Remember

Do your research and understand the local market before making any decisions. Always consult with a qualified legal professional for personalized advice. Be aware of potential hidden costs, such as renovation expenses for older properties.

Conclusion

While Hungary offers attractive real estate opportunities, potential buyers should carefully budget for the various costs associated with property purchases. Beyond the property's price, consider legal fees, taxes, and potential additional expenses like renovations.

Remember, thorough preparation is key to a successful and rewarding property acquisition experience in Hungary.

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