Buying property in Hungary as a foreigner: Rules and regulations

Is official consent required for buying real estate?

Acquiring the ownership of real estate not classified as agricultural and forestry land by a foreign legal entity or foreign natural person requires the permission of the competent government office in the capital city or the county where the property is located.

Who does not need to obtain a permit?

No permit is needed in the following situations:

• For citizens of Member States of the European Union (EU), legal persons or organisations without legal personality
• For nationals of Norway, Liechtenstein, Iceland, legal persons or entities without legal personality
• For nationals of Switzerland
• For dual nationals, if one of their nationalities is Hungarian or an EU Member State, and for Hungarian nationals living abroad, in the case of real estate acquisition
• In the case of inheritance
• In the case of real estate acquisition by persons having refugee or protected status

What documents are required?

The following documents must be submitted to the competent government office:

• The application form
• HUF 65,000 real estate administrative service fee
• A copy of a passport or identity card certified by a legal representative or notary
• A recent certified or notarised copy of the company’s certificate of legal entity or legal representative of the branch or commercial representation
• The original or notarised contract, agreement or declaration of transfer of ownership of immovable property
• Recently certified/e-certified title deeds
• Power of attorney
• A certificate of good conduct proving a clean criminal record

In some special cases, additional documents may be required:

• In the case of a minor applicant, an officially translated copy of the birth certificate as well as the consent of his/her guardians
• If the seller or buyer was not present in person when the contract was concluded, an original or a notarised copy of the power of attorney
• If the applicant is a sole trader intending to carry out economic activities in Hungary for which the property to be acquired is necessary, he/she must verify the business activity
• If the applicant is a foreign natural person who has had a registered place of residence, domicile or accommodation in Hungary for at least 5 years continuously and has been employed for at least 3 years in total during this period, a certificate of employment issued by the state tax authority must also be provided

What happens during the licensing procedure?

The government office will check that the application contains all the necessary documents and annexes. During the process, the office will contact the competent local authority, the National Directorate General for Aliens and the National Police Headquarters in the case of foreign natural person applicants, to determine whether there is any public interest in the application. The time limit for this is 45 days.

The authority will investigate whether:

• The acquisition of property by the foreign national is contrary to the public interest
• The foreign buyer is not banned from the territory of Hungary
• The foreign buyer is not wanted
• The applicant intends to carry out economic activities in Hungary
• The property to be acquired is necessary for the applicant’s economic activity
• The applicant intends to reside in Hungary on a permanent basis

When will the application be rejected?

If the documents submitted are incomplete, or if the acquisition of the real estate is contrary to the public interest or the interests of the municipality, the application will be rejected. The decision of the government office may however be challenged in court.