As a private individual (purchasing in their own name)
Possibility:
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EU citizens can freely purchase residential property without special permission.
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Non-EU citizens (e.g. American, Israeli, Ukrainian, Russian, Chinese, Asian, etc.) need to obtain permission from the Government Office. This is a routine process, typically taking about 1 to 1.5 months.
Loan options:
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It is difficult, but not impossible, for foreigners to get a loan as a private individual.
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A Hungarian salary, residence permit, or local connection (e.g., company, family member) can help.
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Typically, a higher down payment is required (30–50%).
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Loan interest rate is approximately a fixed 6%, with a 10-year interest period, up to 20 years.
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What should the website include if the target audience is foreign private individuals?
“Why Budapest?” section (which we have already started):
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Economic and cultural center
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Stable rental market
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Strong tourism and expat community
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Favorable price-to-yield ratio
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EU membership, but with the possibility of using the HUF exchange rate
“How to purchase property as a foreigner?” – Practical guide
This should include:
🔹 Legal background
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As an EU citizen, no special permit is required (only notification).
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Non-EU citizens: A county government office permit may be necessary (2–4 weeks, formal procedure).
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A Hungarian lawyer is required for the purchase.
🔹 Steps:
- Property selection
- Preliminary purchase offer
- Involving a lawyer – sales agreement
- Deposit (usually 10%)
- Registration of ownership (Land Registry)
- Loan disbursement (if applicable, or currency exchange)
- Handover of property
🔹 Timeline:
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Typically, the entire transaction takes 4–6 weeks.
Taxes and Costs – Transparent, also in euros:
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Duty: 4% one-time, based on the purchase price
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Lawyer’s fee: 0.5–1% + VAT
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Property management / Airbnb management: 10–20% (optional)
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Taxation on rental income: ~15% personal income tax, but many discounts can be applied