Our services

For investors

“Some people look for a beautiful place. Others make a place beautiful.”

Hazrat Inayat Khan, spiritualist

REFURBISH TO SELL IN BUDAPEST 

One of the most popular type of investment is buying a not renovated property and turn it to modern, nicely refurbised property. Of course, the most important phase is to choose the right property, which is ideal for this. As they say, "..not all that glitters is gold". Fortunately, we recognize the real treasures and will help you to find and choose the perfect, which can be put back on the market with a significant profit after renovation.

Even before the sale, we prepare a detailed business plan, based on which our clients can calculate and plan a predictable investment. Of course, we also participate in design, construction and resale.

According to our experience, our investors currently realize an average profit of 20-30% on a renovation. The whole process usually takes 5-8 months.

BUY TO RENT IN BUDAPEST 

Many of our foreign and domestic customers buy properties for rental. Even in a high interest rate environment, it is a popular form of investment, as this type of investment is not only safe, but by adding the 4-6% long-term rental yield and the annual appreciation of 10-18%, we can already reach levels significantly above inflation.

With the help of our company, you can find properties that are really ideal for rent, and by our property management services, we offer our customers a very convenient and safe, long-term investment opportunity.

Get in touch with us and we will be happy to help you to choose a property that provides a return that meets your expectations.

BUYER’S GUIDE

We would like to give you a guide and show all fees and taxes you pay when buying a real estate in Budapest, Hungary.
When buying property in Hungary you will need to appoint a Hungarian lawyer to conduct legal checks on the property on your behalf and to handle the financial transaction. There is no need for notary, only the lawyer is managing the singning and the registratkion process. The lawyer is always appointed by the buyer, therefore always the buyer pays the lawyer’s fee.

The cost of the legal representation is usually 1% of the purchase price, but our clients can choose to use the services of our lawyers who are all very exprienced in property law. 

If you buy a property from us, we offer 50% discount from this cost! This means you pay 0,5% of the purchase price + VAT.

If you have already a lawyer you would like to work with, no problem, you can work whim him / her as well.

VAT (Value Added Tax)

Private individuals in general are not subject to VAT unless they carry out four or more real estate sale transaction within 2 years. 

In case of companies, the sale of real estate is generally exempt from VAT, except from certain exceptions (e.g. real estate before first occupation, or within 2 years from the first occupation). Persons who are registered for VAT purposes have the right however, subject to the prior notification to the Hungarian Tax Authority, to opt for VAT taxation (with the right of VAT deduction). In such case, generally 27% rate would apply to the sale, which can be declared under the domestic reverse charge mechanism, provided that both parties of the transaction are registered for VAT purposes. However, as of 2021 a reduced VAT rate of 5% can be applied in case of sale of a newly built residential real estate if certain criteria are met.

STAMP DUTY

When you buy a property in Hungary, you have to pay a stamp duty.  As a general rule, the tax rate for real estate purchases in Hungary is 4%. Since it is to be paid by the buyer, it is never included in the selling price (unlike most other taxes related to sales). This means that if the price of an apartment is HUF 30 million (EUR 81,900), in reality you will have to pay HUF 30 million (EUR 81,900) to the seller and HUF 1.2 million (EUR 3,300) to the state. This is true for all kinds of real estate, not just apartments: the tax will apply even if you buy a vacant lot.

ADDITIONAL FEES FOR NON-EU CITIZENS

Non-EU citizens have to apply for a permission from the Hungarian Tax when buying a property in Hungary. This is a formality but obligatory to wait for the answer that takes aproximatelly 40days. It has some additional cost, payable for the singning lawyer. Aproximatelly the application costs 100EUR. In a non expected case when the authoriothy rejects it, the deposit is to be returned to the buyer. Hungarian companies with foreign owner do not have to apply for this permission.

 

CONTACT US FOR FREE CONSULTATION!

 

Get in touch with us


Flott Invest Real Estate Agency
1054 Budapest, Aulich utca 5.
+36 70 429 8933
info@flottinvest.hu

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