Hungary — Property: Buying Process

Key facts

• The general duty on buying real property is 4% of the market value (no deduction for encumbrances) up to HUF 1 billion per property, plus 2% on the part above that, capped at HUF 200 million per property.
• The duty becomes payable on the day the underlying contract is concluded.
• The duty statement is filed with the tax authority within 30 days, together with the contract submitted with the application for registration in the real estate register.
• Buyers under 35 acquiring a first residential property get a 50% duty allowance if its market value does not exceed HUF 15 million.
• Foreign buyers may need official permission for the sale (see the foreign-ownership rules); the booklet covers the duty only.

Steps

1. Choosing a Property — This involves researching the market, visiting properties, and deciding on a suitable location and type of property.
2. Negotiating the Price — Potential buyers and sellers negotiate the price and terms of the sale.
3. Signing the Purchase Contract — The notary public prepares and witnesses the signing of the purchase contract. This step includes signing the deed of sale.
4. Registering the Property — The property is officially registered with the land registry office. This involves payment of registration fees and taxes.