Buying a Property In HungaryThe following information is only a
summary and is intended to be no more than a general overview. Thus, the contents
of this page should not be taken as an authoritative statement of Hungarian law
and practice. Readers are encouraged to seek professional advice concerning specific
matters before making any decision. Knowing your limits At
the outset, the most important thing you should do when considering buying a property
is to assess your budget. Set the limit of your purchasing power and don't look
at properties too much above your price range. Property Paths has a range of properties
in Hungary to suit most budgets, from about 39,000 euro upwards. Good quality
investments start from about €60,000. So first establish the limits of your
budget in order that you do not waste time viewing properties outside your price
range. Step-by-Step Guide to Buying a Property in HungaryHidden
CostsYou should allow approximately 10% on top of the purchase price to
cover all costs in relation to buying a second hand or classical property. An
amount of 4% should be added in the case of new property. - Legal Fees
are 1.2% plus VAT (25%) of the purchase price.
- Permit if buying as a
private individual from the Hungarian Government is €600 or Company Setup
€600 - €700(Only one is payable)
- Legal costs to set up number
2 above is approximately €200
- Public utilities contribution at handover
€600
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How
can I buy a property in Hungary?You have two possibilities to buy a property
in Hungary. You can buy it in your own name as a private person or you
can set up a company. If you do not want to travel to Hungary or
you are planning to buy only one property, we usually advise our clients, to buy
the property as a private individual. For this you have to apply for a permit
from the Administration Office of Budapest which almost all of the foreigner purchasers
get. This takes about 2 months. In case you would not receive this permission,
the option is still there to set up a company and to buy the apartment with the
same conditions. Find out more If you
plan to buy more than one apartment you should set up a company which only
takes half a business day to complete. Most of our clients choose a partnership
company or a limited company. You have various possibilities for tax reduction
when you set up a company. Find out more Frequently
Asked QuestionsSelling PropertiesIf you want to resell your
properties after a while, there is 20% capital gains tax to be paid to the Hungarian
State. This is only the case if you do not reinvest the money within a year to
another Hungarian property. If you reinvest the money, you do not have to pay
capital gains tax. Customer ServiceIn all legal matters, Property
Paths will be glad to assist and advice you. |
