Buying a Home in Hungary

Buying a home in a foreign country can be a daunting task, especially if you're unfamiliar with the local real estate market and regulations. This guide aims to provide expats with a comprehensive overview of the home buying process in Hungary. From finding houses for sale to understanding the legal requirements, we'll cover all the key topics you need to know to make an informed decision and navigate the process smoothly.

How Do I Find Houses for Sale in Hungary?

There are several ways to find houses for sale in Hungary. Online property portals are a popular choice, offering a wide range of listings from across the country. Websites like ingatlan.com and otthonterkep.hu are commonly used. Local newspapers and real estate agencies are also good sources of property listings. It's advisable to engage a local real estate agent who can guide you through the process and help negotiate the best deal.

Are There Restrictions on Foreigners Owning Property in Hungary?

Yes, there are some restrictions on foreigners owning property in Hungary. Non-EU citizens need to obtain a permit from the local municipality to buy property. This process can take up to 60 days. However, these restrictions can be legally circumvented by setting up a Hungarian company and buying the property through the company. EU citizens do not need a permit to buy property in Hungary.

Does Hungary Have an MLS Type System?

Hungary does not have a Multiple Listing Service (MLS) system like in the United States. Instead, each real estate agency maintains its own database of properties. This means you may need to check with multiple agencies to get a comprehensive view of the market.

Do Brokers Have Licenses and How Do I Know if They are Licensed?

Yes, real estate brokers in Hungary are required to be licensed. They must complete a professional training course and pass an exam to obtain a license. You can verify a broker's license by checking with the Hungarian Chamber of Commerce and Industry, which maintains a public register of licensed real estate agents.

What Documents are Required When Buying a Home?

When buying a home in Hungary, you'll need several documents. These include your passport or ID card, a tax number, and proof of address. You'll also need the property's title deed and a property valuation report. If you're buying through a company, you'll need the company's registration documents as well.

Do I Need a Lawyer When Buying a Home in Hungary?

Yes, it's highly recommended to hire a lawyer when buying a home in Hungary. A lawyer can help you navigate the legal process, ensure all documents are in order, and protect your interests. The cost of a lawyer can vary, but it's typically around 1% of the property's purchase price.

Do People Typically Buy a Property with All Cash or Take Out a Mortgage?

Both options are common in Hungary. Some people choose to buy property outright with cash, while others prefer to take out a mortgage. If you're considering a mortgage, it's important to note that most Hungarian banks require a down payment of at least 20% of the property's value.

Are There Inspections That Take Place, and If So What is That Process Like?

Yes, property inspections are a standard part of the home buying process in Hungary. A professional surveyor will assess the property's condition and provide a detailed report. This can help you avoid unexpected costs and negotiate a fair price.

What are Some of the Pitfalls to Avoid When Buying Property in Hungary?

One common pitfall is not thoroughly researching the property and the local market. Make sure you understand the property's value and any potential issues it may have. It's also important to ensure all legal documents are in order and that you fully understand the terms of the sale. Finally, be wary of scams and always verify the credentials of any real estate professionals you work with.

Expats Talk about Real Estate in Hungary

"-Finding English-language real estate agents can be difficult but they do exist (I work for one) and it is worth it to find one. Mix ups I've experienced in the past include agents who confuse numbers (40 and 60, for example) and some debate over whether or not my landlady would offer a couch. Businesses that seek expat clients (relocation companies, some real estate agencies and also exercise studios, beauty salons) can have very useful information posted on their website. Choosing a neighborhood: Families seeking residential settings should look for houses on the Buda (West) side of the city, in districts 1, 2, 2A (a bit far from the city center but home to the American School) and 12. Residential parks exist with detached homes and lots of yard space. Those looking to live in the center and close to embassies/businesses should live on the Pest (East) side in district 5, 6 or 7. For urban but residential surroundings look at districts 9, 13 and 14. I saved a map of international schools in Budapest which will help those interested in living close to one: http://maps.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid=113650380662921546661.00048a66a58c714c0c74a&z=11," said one expat living in Budapest.

"I would recommend hiring a good lawyer or finding a real good real estate agent who can guide you into the best building, if you plan to rent. I purchased my flat and I could not be happier. Even though prices have gone up lately, one of the best things is the lack of property tax, which in the US can be thousands or even tens of thousands of dollars a year. I rented for the first year before I decided to buy, and there are many nice apartments in Budapest. Most of the rental apartments here are fully furnished. Also, be aware that they do not distinguish "bedrooms" from other "rooms." So, if you want a two bedroom apartment you need to look for an apartment with three rooms (two bedrooms and a living room). The kitchen and bathrooms do not count in that calculation. In Budapest there are a lot of Airbnb apartments, so it would be good to stay away from buildings. Also, there doesn't seem to be regulations regarding businesses verses residents, so you might find a business in one of the upper floors of a building. But again, a good real estate agent or lawyer can help you figure that out," wrote a member in Budapest.