The Process of Buying Real Estate in Hungary
Buying real estate in Hungary is a smooth process that starts with finding the right property and making a formal offer. After the offer is accepted, a preliminary contract is signed, and a 10% deposit is paid to secure the deal. For foreigners, obtaining a purchase permit takes about 4 to 6 weeks. Once the permit is approved, the final contract is signed, remaining funds are transferred, and the ownership is registered at the Land Registry. Don’t forget, a 4% property transfer tax applies at the end. Working with a local lawyer throughout ensures everything goes smoothly and legally. Here is the breakdown below of the process:
1. Search and Selection
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Browse property listings or work with a real estate agent.
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Visit and inspect the property.
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Check the property’s title deed from the Land Registry (can be requested online).
2. Purchase Offer
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Can be made verbally or in writing, but written form is recommended.
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Often the buyer pays a deposit (“foglaló”), usually 10% of the purchase price.
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Important: the deposit has legal consequences (if the buyer withdraws, it is lost; if the seller withdraws, they must return it in double).
3. Drafting the Sale and Purchase Agreement
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Must be countersigned by a lawyer (mandatory in Hungary).
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The lawyer checks the title deed, any debts, or legal encumbrances.
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The agreement includes: purchase price, payment schedule, date of handover.
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If a bank loan is involved, the lawyer also arranges the necessary mortgage registrations.
4. Signing the Agreement and Payment
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Both parties sign before the lawyer.
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Payment is usually made in stages (deposit, down payment, final amount).
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In case of bank financing, the bank transfers the funds directly.
5. Registration of Ownership
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The lawyer submits the signed contract to the Land Registry.
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The buyer first receives a “pending registration” status.
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After about 30 days, ownership is officially registered.
6. Property Transfer Tax
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The Hungarian Tax Authority (NAV) issues a payment order.
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Standard rate: 4% of the purchase price.
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Discounts and exemptions may apply (e.g., first home, property exchange).
7. Handover of the Property
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Usually after full payment of the purchase price.
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Keys are handed over, and utility meter readings are recorded in a protocol.
8. Utilities and Administration
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Transfer of electricity, water, gas, internet contracts into the buyer’s name.
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Register new address, notify the condominium association about ownership change.
