Hungarian Property – A Buyer’s Guide

Hungary is a beautiful country which is home to the longest stretch of unbroken inland river in Central Europe. Many towns boast gorgeous medieval architecture, making it a popular destination for tourists, particularly those who are interested in arts and music. With recent accession to the EU and a high probability that the country will adopt the Euro, Hungary is experiencing significant growth in many areas.

Why invest in Hungarian Property?
Hungary gained EU accession in 2004 and this has proved to be a boost to the economy. Combined with relatively low interest rates, now is the perfect time to invest in Hungarian property.

Hungary is planning to adopt the Euro and many believe that this adoption will lead to an even stronger economy – and this in turn will push house prices up therefore buying early will mean better returns on your properties.

Budapest is the most obvious choice for property, particularly in the old side of town, Buda, which offers a wealth of history and culture. However, the new side of town is more commercial and up-to-date meaning there is something for everyone in the city. Budapest has historically had a thriving tourist trade and this is set to increase in the next few years – a good sign for anyone looking to rent out their properties in Hungary.

Hungary – The buying process
The process of purchasing property in Hungary is fairly straightforward, although there is more red tape than in some other countries. It is advisable to find a local lawyer who will be able to advise you on your purchase and ensure that your Hungarian property buying process goes as smoothly as possible.

Once you have found a property in Hungary that you would like to buy and a price has been agreed, your lawyer should apply to the Local Government and Administration Office for a permit which allows foreign investors to buy a property in the country. This process can take up to 30 days to complete, so be prepared for your property purchase to take a good few months to complete!

Once a permit has been issued, a deposit must be paid to the vendor – expect to pay around 10% deposit. A contract will then be signed between the vendor and buyer in front of an authorised notary. This contract will then be sent to the local land registry office so that the ownership change can be confirmed – this process takes around 4 to 8 weeks to complete. During this period, it is advisable to sort out the little things associated with your purchase such as setting up a Hungarian bank account etc.

Once the land registry has completed the ownership change process, the remainder of the purchase price on the property should be paid to the vendor.

Taxes and fees will vary dependant on the area, however it is wise to budget around 9% of the purchase price.

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