Buying Issues for Real Estate in Hungary
Should
I Buy As An Individual Or Set-up A Company To Purchase
The Property?
If you decide to buy as an individual, you will need
to apply for a permit before completing the purchase.
These are issued by the local municipal authority who
operate quota systems. Each area sets a quota for the
numbers of properties that can be owned by foreign investors.
Permit applications are accepted or rejected based on
whether the quota has been filled. A decision on your
application will usually take a month.
If you purchase through a company you will not need
to apply for a permit. The company must be set up
in Hungary. Fees are cheap and the process usually
takes no more than a day.
We recommend that you use a company to purchase property
in the region particularly if you are considering
buying multiple properties. Stamp duties at 2% (if
property is sold within 2 years) are lower and you
will be able to more effectively offset some of your
costs against future capital gains.
Are
There Any Legal Guidelines About Paying A Deposit
That I Need To Be Aware Of?
An initial deposit of €2-3000 will be required
to secure a property. A formal deposit, set by law at
10% of the purchase price, must then be paid within
10 days of the initial agreement. Hungarian law stipulates
that late payees may lose their initial deposit if this
is not met. Therefore, it is vital that you have sufficient
funding in place before you commence purchasing property.
Once
I Have Paid A Deposit, How Much Time Do I Have To
Complete The Sale?
Hungarian law requires that the purchase must be closed
within a month of paying your deposit. Therefore, you
will need to have the funds available to close the deal.
What
Documentation Will I Need To Open A Bank Account?
The following documentation is required by Hungarian
law when opening a bank account:
- Passport
- A utility bill issued within the last 3 months
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in buying - Contact Us
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