We hear from more and more Hungarians living abroad, expats working in Budapest and families looking for a second home or a long-term investment in the city. Their questions are strikingly similar: do I need a permit, can I get a mortgage, how long does it all take, and does buying a flat give me the right to live here?
The good news is that Hungarian rules are predictable and the process can be planned well. The key dividing line is citizenship. EU and EEA citizens buy in essentially the same way as Hungarians, while buyers from outside the EU also need a permit from the government office. This guide takes you through each step, with the fees and deadlines that apply in 2026.
Who counts as a foreign buyer?
For the acquisition permit, what matters is not where you live but which country's citizen you are, or, for a company, where its registered seat is.
- EU and EEA citizens: government office guidance defines a "foreign natural person" as a citizen of a non-member state. So if you are, say, a German, Austrian or Dutch citizen, you do not need a separate permit to buy a flat.
- Third-country nationals (for example British, American, Ukrainian, Chinese, Israeli or Emirati buyers): you need a permit from the government office to acquire a flat or any other non-agricultural property.
- Dual citizens: if one of your citizenships is Hungarian, you buy as a Hungarian.
- Companies: a legal entity with its seat outside the EU needs a permit. A Hungarian-registered company does not count as foreign in this procedure, but buying through a company has its own tax and financing consequences, which we always model in advance.
This guide covers flats and other non-agricultural property. Agricultural and forest land is governed by a separate and much stricter law. If a property comes with a garden plot or land outside the built-up area, check its classification on the title deed at the very start.
The permit process for non-EU buyers
Based on the government offices' 2026 guidance, the procedure works like this:
- The government office where the property lies decides. For a Budapest flat, that is the Budapest government office.
- The application is made on an official form, and filed electronically when a lawyer represents you. It includes a certified copy of your passport, a document proving your intention to acquire (usually the sale and purchase agreement), a power of attorney and proof that the fee has been paid.
- The fee is HUF 65,000 per property. A reduced fee of HUF 13,000 applies to people with free movement or long-term residence rights who have applied for Hungarian citizenship.
- The processing deadline is 45 days. The decision can be challenged in court within 30 days.
- What is checked? Whether the acquisition harms the public interest (for instance an expulsion order, entry ban or arrest warrant) or the interest of the municipality. The mayor gives a statement on the latter.
In practice, we draft the purchase agreement so that registering your ownership depends on the permit. Until the permit is granted, the land registry will not record the new owner, so the payment of the price is timed to match, usually through a lawyer's escrow account.
Buying, step by step
- Purpose and budget. Your own use, part-time stays or letting? This shapes the district, the type of flat and whether short-term rental restrictions matter to you.
- Instruct a lawyer. In Hungary a property purchase agreement must be countersigned by a lawyer. The lawyer also carries out anti-money-laundering checks, so be ready to show where the money comes from (bank statements, the sale of a previous property, an inheritance).
- Hungarian tax ID. The tax authority (NAV) has to identify you to assess the transfer tax, so as a foreign buyer you will need a Hungarian tax identification number. Your lawyer or accountant can arrange it.
- Due diligence. The title deed (charges, mortgages, usufruct, pre-emption rights), the building's deed of foundation and house rules, service charges and a no-arrears statement, the energy certificate and the technical condition of the flat.
- Deposit. Under Hungarian law a deposit (foglaló) is a serious commitment: if the deal falls through because of the buyer, the deposit is lost; if because of the seller, they must pay back double. It is often around 10% of the price, but that is a matter of agreement.
- Purchase agreement. If you do not speak Hungarian, we recommend a bilingual contract or a certified translation, or an interpreter. Someone can sign on your behalf, but the power of attorney must meet formal requirements (often with an apostille if issued abroad).
- Permit (non-EU buyers only), followed by registration at the land registry.
- Handover. A signed record of meter readings, keys and inventory, then transferring the utility accounts.
- Transfer tax. After the land registry records the change, NAV issues a decision setting the 4% transfer tax and the payment deadline.
On top of the price, budget for transfer tax, legal fees, the permit fee if you are a non-EU buyer, and translation or an interpreter if you do not speak Hungarian.
Paying from foreign currency
The price of a Budapest flat is usually set in forints in the contract. If you pay from euros or another currency, the exchange-rate risk is yours: the forint can move noticeably in the weeks between signing and transfer. Decide in advance when you will convert, and allow for international transfer times. Larger sums are usually paid through a lawyer's escrow account, so the seller only receives the money once the contract conditions are met.
EU and non-EU buyers at a glance
| Item | EU/EEA citizen | Third-country national |
|---|---|---|
| Government office permit | Not required | Required, 45-day processing deadline |
| Procedure fee | None | HUF 65,000 per property |
| Lawyer's countersignature | Mandatory | Mandatory |
| Property transfer tax | 4% | 4% |
| Otthon Start mortgage | Available if conditions are met | Only with immigrant or settled status |
| Short-term letting | Subject to district rules | Subject to district rules |
Financing as a foreigner
Most foreign buyers pay cash or borrow from a bank at home. Hungarian banks do lend to foreigners, but usually on stricter terms: they may ask for Hungarian income, a Hungarian address and a longer employment history.
According to OTP Bank's product sheet from March 2026, the state-backed Otthon Start mortgage (fixed 3% interest, up to HUF 50 million) is open not only to Hungarian citizens but also to people exercising EU free movement rights and to third-country nationals with immigrant or settled status. Conditions include Hungarian social security cover (or an equivalent status) for the 180 days before applying, and no home ownership in the past 10 years. The flat may cost no more than HUF 100 million and HUF 1.5 million per m². Always check the scheme's conditions with the bank before applying, as the rules can change.
Does buying give you residency?
No. In Hungary, buying a home does not in itself come with a residence permit. According to information published by Hungarian consulates, the guest investor visa and residence permit, available since 2024, is linked to two forms of investment: buying at least EUR 250,000 of units in a real estate fund registered with the Hungarian central bank, or donating at least EUR 1 million to a public-interest higher education institution. A direct flat purchase is not among the options.
If residency is your goal, sort out the legal basis first (work, study, family, guest investment) and plan the purchase around it.
Taxes as an owner
- Letting: income from long-term residential letting is taxed at 15% personal income tax for private individuals, with no social contribution tax. Your home country's tax rules and the relevant double taxation treaty also apply.
- Selling: income from selling a home is taxed at 15%, but becomes tax-free from the fifth year after you acquired it. We cover the details in our guide to selling.
- Local taxes: some districts levy a building tax or a communal tax on private individuals, so check this district by district.
Timing (the permit, foreign-currency transfers, exchange rates), the form of the power of attorney, translation, and whether the flat truly suits its purpose. If you plan to let it, we check the district's short-term rental rules before you commit.
If you are buying from abroad and want someone on the ground representing your interests, see our buyer representation service or get in touch.
Frequently asked questions
Do I need to be in Hungary to sign?
Not necessarily. With a properly executed power of attorney, your representative can sign for you. A power of attorney issued abroad usually needs notarisation and an apostille, which your lawyer will arrange in advance.
How long does the process take for a non-EU buyer?
The government office has 45 days to decide on the permit. From choosing a flat to handover, the whole process is therefore usually a few weeks longer than for an EU buyer.
Can I buy through a company?
Yes, but weigh it up first. A company registered outside the EU needs a permit, a Hungarian company does not, but corporate ownership brings accounting, tax and financing consequences.
Can I let the flat to short-term guests?
That depends on the district. It is not allowed in District VI from 2026, District VII issues no new permits in residential buildings, and no new short-term accommodation can be registered anywhere in Budapest until the end of 2026. We always check the current rules before purchase.
This article is general information, not legal or tax advice. Please seek individual advice for your own situation.
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Dr. Gősi Georgina is Monvero's legal advisor. She looks after contracts, legal due diligence and the legal side of tax questions. This article is for general information; for advice on your own situation, get in touch.
