If you have been making Hungary your home or simply want to move to Hungary and purchase a house, then you should know that there are some restrictions regarding foreigners purchasing property in Hungary.
If you are looking to buy a home or other property in Hungary, you should know that Budapest is a high demand area, as is the area around Balton, which is a popular holiday resort area. Hungary is an attractive real estate market due to its low taxes. Corporate income tax is at 18% while industrial tax is at 2%. However, any sale or purchase by a foreign citizen requires you to be in possession of a permit from the Hungarian State Authorities.
As a foreigner, you will find that it is difficult if not almost impossible to buy property in Hungary. There are resident requirements that must be met in order to be eligible to purchase property, as well as being in possession of a permit. In order for the permit to be issued by the Hungarian State Authorities certain conditions must be met. A permit can only be issued when the sale or purchase is not against the public interest, if the sale or purchase involves the foreign citizen selling one property in order to buy an inland property, if the foreign citizen has been a Hungarian resident for a minimum of 5 years, and if the property in question is needed for a business.
If you feel that you can meet the requirement and would like to submit an application for a permit, you will need to submit your application at the Administrative Authority Office. When you are ready to submit your application you will also need to have some additional documentation as well. Along with the completed application form, you will need a certified copy of your passport as well as your actual passport, the sale or purchase contract for the property, an original copy of the property deeds issued less than 30 days before the date that you submit your application and the fees for processing your application. You can expect it to take around a month for the application to process before you are issued the permit.
It should be mentioned that businesses that are established in Hungary do not have such restrictions on their purchasing power. This means that if you have established a business in Hungary, then it is highly likely that your business can purchase property in its name without the restrictions that you, as a foreign citizen, face when trying to purchase property.
You should look for a Hungarian lawyer that specializes in property purchase for foreigners to answer any questions and to assist you in obtaining a permit and the necessary paperwork.