Property in Hungary: a buying guide for foreigners

Hungary offers a large, liquid capital market in Budapest and a lake-resort segment around Lake Balaton. The process is led by a Hungarian lawyer rather than a notary, and non-EU buyers need an official permit. Below are the rules as we could confirm them in October 2026, with notes on what to verify.

Market snapshot

A Housiko price index (a Hungarian brokerage's data, July 2026) put the median Budapest asking price at about HUF 1.34 million per square metre, from roughly HUF 1.96 million in District V (the most expensive) to about HUF 0.85 million in District XXIII. Around Lake Balaton, listing portals reported average asking prices of about HUF 1.27 million per square metre in Siofok and about HUF 1.5 million in Balatonfured, with weaker demand than in 2021. These are asking prices, not transaction prices, and they come from commercial sources; use them as orders of magnitude.

Who can buy

Citizens of the EU, EEA and Switzerland, and companies from those states, buy without a permit. Everyone else needs the consent of the government office (kormányhivatal) of the county or Budapest district where the property is located. Agricultural and forest land is closed to non-residents, so the permit route concerns homes, plots in built-up areas and holiday properties. See also EU vs non-EU property rules.

The permit in brief, as reported by law-firm and broker sources:

• Your lawyer files the application together with the signed contract; the contract is conditional on the permit.
• The office has about 45 days, in practice often a few weeks, and consults local authorities, immigration and police bodies.
• The administrative fee is reported at HUF 50,000 in some sources and HUF 65,000 in others, so ask your lawyer for the current amount.
• A refusal is possible if the acquisition is contrary to the public interest or the municipality's interests; it can be challenged in court. For an ordinary home it is described as routine.

Step-by-step process

• Check the title deed (tulajdoni lap) from the land registry: owner, mortgages, notes, easements.
• Hire an independent Hungarian lawyer. By law an attorney drafts and countersigns the sale contract; commonly cited fees are around 1% plus 27% VAT, often with a minimum.
• Sign a preliminary agreement with a deposit, then the sale contract. Non-EU buyers add the permit condition.
• Pay the price against the lawyer's escrow or a verified account, and register the transfer at the land registry (several weeks to months).
• Wait for the tax office bill for the acquisition duty after registration.

Costs and taxes

• Acquisition duty: 4% of the price (2% on the part above HUF 1 billion), paid by the buyer after the tax office (NAV) issues a bill. Check for relief categories with your lawyer.
• Lawyer: about 1% plus VAT (reported).
• Land registry fee: a small fixed amount, reported at around HUF 10,000.
• Real-estate agent: often paid by the seller, but check the agreement.
• Local taxes (building tax, land tax) are set by municipalities.
• Rental income and capital gains are taxed at 15% (reported), and gains are reported to fall to zero over time: sources say the taxable gain is reduced by 10% per year after the fifth year. Confirm the details with a Hungarian adviser; foreign owners are taxed on Hungarian-source income. Your home country may tax the same income, see tax residency when relocating.

See total cost of ownership abroad for a budgeting checklist.

Rental and the Airbnb situation

Budapest is the most restrictive part of the market for short-term lets. Reports say that District VI (Terezvaros) banned short-term rentals from 1 January 2026 after the Supreme Court upheld the local decree in November 2025, with inspections and fines since January; other central districts have been considering limits. Reports also mention a national moratorium on new short-term registrations until the end of 2026 and higher flat taxes per room. We could not confirm these national measures from a single official text, so check the specific district and building (condominium rules can also forbid short lets) before buying for Airbnb. Compare with short-term vs long-term rental. Long-term letting is the safer assumption.

Residence through property

We found no residence permit granted for buying a home. The Guest Investor programme dropped its real-estate option in 2025 according to the sources we read, and the programme was described as stalled in 2026; do not plan around it.

Risks

• Title and registration: the land registry can take months to complete a transfer; keep the lawyer's escrow until registration.
• Condominium rules and renovation backlog in older Budapest buildings.
• Lake Balaton: seasonal demand, weak liquidity outside the best locations, and checks on building permits for holiday houses.
• Mortgages for non-residents are limited; see mortgages for non-residents.

For Russian-speaking buyers and expats

Prepare a passport, a certified copy for the permit file, and if you live in the EU your residence card. Contracts are in Hungarian, so use an official translation and a lawyer who explains them in a language you understand; Russian-speaking lawyers and agents work in Budapest. The permit procedure involves checks by public bodies, and banks apply source-of-funds and sanctions screening; keep your documents clear and lawful, and read bank checks for Russian citizens living in the EU and country restrictions by citizenship. Our overview for Russian-speaking residents of the EU explains the general approach.

FAQ

Do I need a permit as a non-EU citizen? Yes, from the local government office, unless you also hold EU/EEA/Swiss citizenship or fall under another exemption.

Can I buy land to farm? No, agricultural land is closed to non-residents.

Who pays the 4% duty? The buyer, after the tax office issues a bill.

Can I run an Airbnb in Budapest? It depends on the district, the building and national rules; District VI has banned it. Verify before you buy.

Can I buy at Lake Balaton? Yes, with the same permit process for non-EU buyers.

Does buying grant residence? We found no such route.

How we help

We are a trilingual platform that finds properties and coordinates independent local lawyers and tax advisers. This text is informational and is not legal, tax or investment advice; verify current rules with official sources such as the Hungarian government portal and the tax office NAV.