Buying property in Hungary - Which four questions should I address?

Since everyone has different preferences and risk profiles, the following explanations can sometimes only provide food for thought. Where clear answers are possible within the framework of the legal situation or administrative requirements, the essential parameters are discussed.
 

Buying Real Estate in Hungary – Brief Overview

Short answer: EU citizens can buy properties in Hungary without problems. Restrictions exist exclusively for agricultural land. The property purchase takes place via a lawyer and is entered in the Hungarian land register.

Here is a brief tabular overview of the essential topics explained in the article.
   

1) Buying a house in Hungary: Privately or via an agent?

Real estate in Hungary can be purchased directly from private individuals or via a real estate agent. Private purchases are legally permissible.

Buying a house in Hungary can, however, also involve risks for foreign buyers. Potential buyers often get well-meaning advice in forums to look around locally on the street for signs ('Eladó') or to buy privately via websites.

However, privately offered properties are frequently in the lower quality segment. This is especially true if one assumes Swiss or German standards. Typical risks concern electrical systems, water and sewage connections, missing building permits, or buildings not correctly registered under building law.

As a stranger in the country (usually without language skills), a private purchase process can then quickly become a fiasco. Subsequent renovations can cause considerable additional costs.

A reputable real estate agent in Hungary significantly reduces these risks.

2) Reputable Real Estate Agent in Hungary: How to Recognize One?

A reputable agent organizes the purchase transaction via an independent lawyer. This lawyer checks the current land register extract, draws up the purchase contract, and initiates the land register entry.

Reputable agents, together with the lawyer, ensure that buildings were erected in compliance with building law, especially in the case of properties on former agricultural land, gardens, or vineyards.

If desired, payment flows can be handled via a lawyer's escrow account. The lawyer acts in a neutral capacity for both buyer and seller. Following the notarization of the contract, they may not represent either of the contracting parties legally.

In Hungary, the seller usually pays the agent's commission. An additional buyer's commission is legally possible but not industry standard.

Usual free buyer support includes assistance with re-registering utility companies, insurance, and initial administrative steps after the purchase.

3) Land in Hungary for Foreigners: How Much Land is Allowed?

EU foreigners are placed on an equal footing with Hungarian citizens when acquiring land. However, special regulations apply to agricultural land.

Non-farmers may own a maximum of 1 hectare of agricultural land, with exceptions for acquisition from close relatives or in succession. Farmers registered in the EU can acquire up to 300 ha. Agricultural land cannot be acquired as a company. Agricultural land includes arable land, vineyards, orchards, meadows, pastures, and forests.

It is possible to acquire an agricultural plot in Hungary of several hectares with several people. For example, it would be possible for a three-person family to acquire one hectare for each family member, totaling 3 ha.

Inner-village plots without agricultural designation are exempt from this limit. Statutory pre-emptive rights exist for agricultural land.

Since 2025, municipalities have had the legal possibility to limit the purchase of real estate for non-residents. To date, this optional provision has only been used very sporadically. See also my article: What does the protection of local identity mean for buyers of real estate in Hungary.

4) Real Estate Purchase in Hungary: Process, Taxes, and Law

On the day of signing the contract, the lawyer retrieves a current land register extract electronically to check for any current entries or encumbrances and, if necessary, to dissolve them contractually. After signing the contract, a marginal note is entered in the land register, which prevents further encumbrances.

The application for entry into the land register must be made within 30 days. If buyers do not yet have a residence in Hungary, the lawyer can also serve as an authorized recipient for service of process.

Ownership entry takes place only after full payment of the purchase price. A deposit of 10–20 % is usual, which is offset against the purchase price. If the contract fails due to the buyer's fault, the seller keeps the sum of the deposit. If the contract fails due to the seller's fault, the seller is obliged to pay double the sum.

As a rule, 'sold as seen' applies. Ensure that furnishings agreed as 'sold with' during the viewing are also listed in the contract. It is not uncommon for sellers to clear out furnishings between contract conclusion and handover anyway.

When buying real estate, a property transfer tax of up to 4 % of the purchase price applies. Legal fees are usually around 1 % of the purchase price plus VAT and are borne by the buyer.

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Summary for Skimmers

• EU citizens can buy residential property freely in Hungary
• Agricultural land is limited to 1 hectare
• The purchase is always made via a lawyer
• The property transfer tax is up to 4 %
• Legal fees are usually 1 %

Author: Dr. Peik Langerwisch – Real estate agent for properties in Hungary with many years of experience in the German-speaking area.

After studying business administration with a degree in business and a magna cum laude doctorate in management, the author worked for twenty years in global management consultancies and banks and has now been acting as a real estate agent for properties in Hungary with his expertise for several years.

Of course, he also owns property in Hungary and can provide support on-site based on both personal experiences and experiences with many customers.

Brief overview of expertise and career