Buying property in Budapest as a foreigner: permits, costs and the process

Foreigners can buy residential property in Budapest. Citizens of the EU, the EEA and Switzerland buy on the same terms as Hungarians, while third-country nationals need a permit from the competent government office, which costs HUF 65,000 per property and has a 45-day processing deadline. The buyer's main additional cost is the property transfer duty: 4% of market value up to HUF 1 billion, 2% above that, capped at HUF 200 million per property.

Who can buy property in Hungary?

EU, EEA and Swiss citizens, as well as dual nationals who also hold Hungarian or EU citizenship, can buy residential property on the same terms as Hungarian buyers, without a permit.

Third-country nationals need a permit from the government office (fővárosi vagy vármegyei kormányhivatal) responsible for the property's location. A Hungarian residence permit does not exempt you from this requirement.

• The procedural fee is HUF 65,000 per property (since 20 January 2025, previously HUF 50,000).
• The processing deadline is 45 days. Within this period, the mayor may object within 30 days on grounds of municipal interest.
• You will need the completed application form, a certified copy of your passport, the signed contract and proof of payment of the fee.
• Third-country nationals cannot acquire agricultural land.

A law on the protection of local identity has been in force since 1 July 2025 and also applies to Budapest districts. It allows municipalities to introduce pre-emption rights or a settlement contribution by local decree, and since 3 January 2026 ignoring such a decree can lead to the refusal of a foreign buyer's permit. Before buying, it is worth checking whether the district has adopted such a decree.

UK nationals covered by the Brexit Withdrawal Agreement are treated like EU citizens. Other UK nationals need a permit.

How does the purchase work, step by step?

1. Search and viewings. Clarify your budget, financing and must-haves in advance.
2. Due diligence. Check the title deed, encumbrances, the condominium's affairs and the technical condition. The seller must present the energy performance certificate by the time the contract is signed.
3. Offer and deposit. The parties agree on the price, the payment schedule and the handover date.
4. Sale and purchase agreement. Registration of ownership requires a public deed or a private deed countersigned by a lawyer, so in practice a lawyer drafts the contract.
5. Payment. The price is often paid in instalments via the lawyer's escrow account.
6. Land registry. The lawyer files the application electronically. The electronic land registry has operated since 15 January 2025, and simple, unencumbered cases can now be registered within hours.
7. Handover and duty. At handover, the energy certificate must also be handed over. The transfer duty is paid on the basis of a payment notice from the Hungarian Tax Authority (NAV).

What does buying cost on top of the price?

Property transfer duty

The buyer pays the duty on the property's market value: 4% up to HUF 1 billion per property and 2% on the part above that, capped at HUF 200 million per property.

If the buyer sells another home within 5 years before or 1 year after the purchase, the duty is based on the difference in value. The 5-year look-back has applied since 1 January 2026.

Lawyer's fee

The lawyer's fee is not set by law. According to Financera, the typical range is 0.3–1% of the price, often 0.3–0.8% in Budapest, usually with a minimum fee of HUF 100,000–150,000. For premium properties, the fee is often based on an individual quote. Working with a lawyer who handles the transaction in English is advisable.

Land registry and other costs

• Registering ownership costs HUF 10,600 per property, a mortgage HUF 20,000 (since 29 July 2024).
• With a mortgage, the bank's valuation and disbursement costs also apply.
• For non-EU buyers, the permit fee is HUF 65,000 per property.

In the HUF 1.2 billion example, the duty is 4% up to HUF 1 billion (HUF 40 million) and 2% on the remaining HUF 200 million (HUF 4 million).

Deposit or advance payment: what is the difference?

The two are often confused, but their legal consequences differ greatly.

• Deposit (foglaló) under Section 6:185 of the Hungarian Civil Code: it only counts as a deposit if the contract clearly states that it secures performance. If the deal fails through the fault of the party who paid it, that party loses it. If the recipient is at fault, they must repay double. If neither or both are at fault, it is refunded. A court may reduce an excessive deposit.
• Advance payment (előleg): part of the price paid in advance, which is refunded if the deal falls through.

The often quoted 10% is market practice, not a legal requirement.

What should the contract cover?

• A precise payment schedule, and whether the price goes into the lawyer's escrow.
• Retention of title (Civil Code Section 6:216) if the price is paid in instalments: the seller remains the owner until full payment, which is also recorded in the land registry.
• The handover date and the transfer of utilities.
• An inventory of movables if the property is sold furnished.

Do you need the Golden Visa to buy?

No. Buying property and obtaining residence are separate matters. Since 30 December 2024, buying a home directly no longer qualifies for Hungary's guest investor residence permit. Read more in our article on the Hungary Golden Visa.

How Flott Invest helps

Many of our clients buy from abroad. We support buyers from the first consultation until completion, together with our lawyer and tax adviser partners, and our property management team looks after the property after handover if it is bought to let. Find out more on our page for buyers, or browse our current properties for sale.

Frequently asked questions