Yes. Buying a standard, non-agricultural apartment in Budapest is often more straightforward than international buyers expect, provided the legal and financial sequence is handled correctly. For an EU or EEA citizen, a conventional residential apartment can generally be acquired without the government permit commonly required for many non-EU buyers. The transaction is legally formalized by a Hungarian lawyer rather than through the notarial process used in some other countries. The real risks are elsewhere: title defects, registered encumbrances, condominium arrears, weak building finances, an incorrectly structured deposit, foreign-exchange leakage, renovation VAT and a payment timetable that exposes the buyer too early. The advertised price is only the starting point. The transaction should be underwritten on total project cost, not purchase price alone.
What changes for an international buyer
General information only. This guide does not replace legal, tax, banking or financial advice tailored to the buyer, the property and the buyer's country of tax residence.
The lawyer is central to the transaction
In Hungary, the buyer normally appoints and pays the lawyer who prepares and countersigns the purchase agreement, reviews the legal status of the property and files the ownership change with the land registry.
In the transactions we handled, legal fees were often quoted around 1% of the purchase price, but this is not a statutory tariff. The fee is freely negotiated and should always be confirmed in writing, including whether it is quoted excluding VAT or including VAT. A lawyer charging 1% excluding VAT may effectively cost 1.27% once Hungary's standard 27% VAT is added.
Signing can be quick. Completion is a separate step.
Once the legal checks are complete and the contract is ready, the purchase agreement may be signed within a few days. That does not mean the whole acquisition is completed within days.
Payment, filing at the land registry, release of any mortgage, satisfaction of contractual conditions and handover follow the timetable agreed in the contract. A clean cash acquisition may complete in a matter of weeks, but the exact duration depends on the seller, title status, payment structure and financing.
The local deposit is not a casual reservation payment
Hungarian transactions often use a foglaló, a deposit with a specific security function. It is commonly negotiated around 10% of the price, but 10% is a market convention, not a legal rate. The contract must clearly state that the payment is a foglaló rather than an ordinary advance, or előleg.
Broadly: if the transaction fails for a reason attributable to the buyer, the buyer may lose the foglaló; if it fails for a reason attributable to the seller, the seller may have to return twice the amount; if neither party, or both parties, are responsible, the amount is normally returned. The deposit should therefore be paid only after the lawyer has completed the relevant checks and the agreement clearly defines the conditions attached to it.
The currency is part of the deal
Many properties are advertised or negotiated in Hungarian forints. The exchange rate, transfer method, bank spread and settlement date can materially change the euro cost. Foreign exchange is not an administrative detail to solve the day before completion. It belongs in the underwriting from the start.
The acquisition process, step by step
- Define the total budget. Include purchase price, transfer duty, legal fees, VAT on professional services, translations, banking, foreign exchange, renovation, furnishing and contingency.
- Clarify the buyer profile. EU/EEA citizen, non-EU individual, company, resident or non-resident. Different structures can require different procedures.
- Agree the payment route with the lawyer. Currency, exchange, escrow if used, banking route, tax-number timing and payment schedule.
- Inspect the building as carefully as the apartment. Roof, façade, risers, lift, common electrical systems, cellar, reserves, arrears and approved works.
- Review the land-registry extract, the tulajdoni lap. Confirm the true owner, mortgages, rights, restrictions and registered encumbrances.
- Review the condominium documentation. Financial statements, meeting minutes, planned works, litigation, common charges and reserve funds.
- Make the offer only after the acquisition logic is clear. Do not let the deposit compensate for missing due diligence.
- Pay the foglaló only after the relevant checks. Its function and consequences must be explicit in the contract.
- Sign the lawyer-drafted agreement and pay according to verified milestones.
- Complete the land-registry filing and handover.
- Pay transfer duty when assessed by the tax authority.
The purchase costs, line by line
Property transfer duty
For a standard apartment, property transfer duty is generally 4% of the market value assessed by the Hungarian tax authority, up to HUF 1 billion. A 2% rate applies only to the portion above HUF 1 billion, subject to the statutory cap.
There is no general 5% purchase tax. The shorthand "5% purchase costs" usually means 4% transfer duty plus roughly 1% legal fees. That shortcut can still understate the real cost because legal fees may be quoted excluding VAT.
Legal fees
Legal fees are negotiated. In the cases we handled, they were often around 1% of the purchase price, but they can be lower, higher or fixed depending on the complexity of the transaction.
Always ask: is the fee fixed or percentage-based? Is VAT included? Does it include title review, contract drafting, land-registry filing and completion work? Are translations or interpreting charged separately?
Translation, interpreting and administration
Depending on the buyer and documents, the transaction may involve certified translation, interpreting at signing, document authentication, powers of attorney, bank transfer costs, foreign-exchange spreads and technical or valuation reports.
Indicative example: a €200,000 apartment
| Cost item | Indicative amount |
|---|---|
| Purchase price | €200,000 |
| Transfer duty at 4% | €8,000 |
| Lawyer at 1%, excluding VAT | €2,000 |
| VAT on legal fee at 27% | €540 |
| Total before translation, banking, FX, renovation and furnishing | €210,540 |
This already represents a 5.27% entry cost before any renovation, furnishing or currency leakage. If the lawyer quotes 1% including VAT, the total will be closer to 5%. The written engagement letter is what matters.
The real entry cost: renovation VAT
The most underestimated cost in Budapest refurbishment projects is not transfer duty. It is VAT on construction and professional services.
Hungary's standard VAT rate is 27%. A renovation quote of €100,000 excluding VAT represents €127,000 including VAT.
Not every supplier charges VAT. A qualifying small business under Hungary's personal VAT-exemption regime may invoice without VAT, subject to its statutory turnover limit and compliance with that regime. On a real project, VAT-registered contractors and VAT-exempt small suppliers may work side by side. The budget must therefore be built quote by quote, not by applying one theoretical rate across the whole project.
For an individual holding and letting a conventional residential apartment, renovation VAT should generally be treated as a real cost. A company should not assume it can recover that VAT automatically. Recoverability depends on the structure, the taxable or exempt nature of the activity and the actual use of the property.
The 27% VAT does not normally get added to the price of a conventional second-hand apartment purchased from a private seller. It primarily affects services, renovation, new properties and sellers who are taxable or have opted into VAT. The full budget, VAT treatment and contractor risk for a refurbishment project are covered in our guide to renovating an apartment in Budapest.
Bank account, tax number and payment route
A Hungarian bank account is not always a legal precondition to sign or complete an acquisition. It can nevertheless make local payments, common charges and future rental management easier.
A person legally resident in the European Union may request a basic payment account in another EU member state, even without living there. The bank may still require evidence of a genuine connection to Hungary and will apply anti-money-laundering and source-of-funds checks. This right does not guarantee credit, an overdraft or immediate approval for a standard commercial account.
The payment route should be agreed with the lawyer before signing: which currency is used, where the funds are held, whether escrow is used, when the Hungarian tax number is needed, and whether a local account is useful or required for the chosen structure.
The Hungarian tax number should be prepared early enough for the acquisition and any subsequent letting activity, but it does not normally need to prevent the buyer from beginning the search or negotiating an offer.
Financing a Budapest purchase as a non-resident
Most international acquisitions we handled were funded in cash.
In our experience, Hungarian financing for a non-resident earning income abroad remains rare, selective and highly dependent on the bank, the currency of income, the borrower's residence and documentation, the deposit, the property and the wider financial profile. It should not be built into the investment model before written approval has been obtained.
For some European buyers, financing secured against an existing property in their home country can be more realistic than expecting a Hungarian mortgage. That option must be assessed with the buyer's own bank or broker.
The checks that prevent expensive surprises
The land-registry extract
The tulajdoni lap should be reviewed systematically. It shows the registered owner and may reveal mortgages, usufruct or use rights, enforcement rights, restrictions, registered claims and other encumbrances.
The condominium
A good apartment in a weak building can be a poor investment.
Before signing, review condominium arrears, annual accounts, reserve funds, recent meeting minutes, approved or expected capital works, roof condition, façade condition, water risers, common electrical systems, lift condition, litigation and potential special assessments.
Short-term rental rights
If the investment case includes short-term rental, the existing authorization and its ability to remain valid after a sale or change of operator must be checked case by case with a Hungarian lawyer.
Do not price an apartment as if an Airbnb right automatically transfers with the keys. For the current regulatory position, see our guide to Airbnb in Budapest in 2026.
The wider investment logic
For district profiles, rental strategies and the historic case study behind our underwriting approach, see our Budapest real estate investment guide.
Tax on resale decreases with the holding period
For a private individual, Hungarian tax on resale is calculated on the documented net gain, not the sale price.
Potentially deductible items include, subject to the applicable rules and evidence: acquisition cost, acquisition-related costs, documented value-increasing improvements and selling costs.
The personal income-tax rate is 15%, while the taxable portion of the calculated gain decreases by calendar year:
| Year of sale relative to acquisition | Taxable portion of the gain |
|---|---|
| Year of acquisition | 100% |
| Following year | 100% |
| Second following year | 90% |
| Third following year | 60% |
| Fourth following year | 30% |
| Fifth following year and later | 0% |
This is based on calendar years, not an exact sixty-month holding period. Invoices matter: value-increasing works that cannot be documented may not be available as deductible costs.
Hungarian tax treatment is only one layer. Investors must also obtain advice in their country of tax residence.
Frequently asked questions
Can an EU citizen buy an apartment without residing in Hungary?
Yes. For a conventional non-agricultural residential property, an EU or EEA citizen can generally purchase without the prior government permit required for many non-EU buyers. Agricultural land follows different rules.
What about a non-EU buyer?
Many non-EU buyers require a government permit to acquire Hungarian real estate. The procedure, timing and eligibility should be confirmed with a Hungarian lawyer before making a binding commitment.
How long does it take from offer to handover?
Once the legal checks are complete, the purchase agreement can sometimes be signed within a few days. A well-prepared cash transaction may complete in a matter of weeks. The timing depends on title, payment milestones, mortgage releases, registration and financing.
Can the purchase be completed remotely?
Technically, yes, through a properly prepared power of attorney. In practice, we strongly recommend an independent second inspection of both the apartment and the building before a binding purchase.
Are foglaló and előleg the same thing?
No. An ordinary advance, előleg, is generally returned if the transaction does not complete. A foglaló also performs a security function and may be lost or returned at twice its amount depending on which party is responsible for the failure. The contract must identify it correctly.
Is a Hungarian bank account compulsory?
Not necessarily, depending on the payment route agreed with the lawyer. It often becomes useful for local charges and rental operations. Clarify the requirement before signing rather than treating it as an automatic precondition to making an offer.
Do I need a Hungarian tax number before making an offer?
Not necessarily before the offer. It should, however, be prepared early enough for the acquisition and future tax obligations, on a timetable confirmed by the lawyer or accountant.
Is the purchase tax 5%?
No. Transfer duty is generally 4%. The 5% shorthand often adds roughly 1% legal fees, which are negotiable and may themselves be subject to 27% VAT. Underwrite each cost separately.
Does 27% VAT apply to renovation works?
Generally, yes, when the contractor or supplier is VAT registered. For an individual holding a standard residential rental property, that VAT will usually be a real cost. Always ask whether a quote is excluding VAT or including VAT.
What tax applies on resale?
For a private individual, 15% applies to the documented taxable gain, not the sale price. The taxable portion decreases by calendar year and falls to zero from the fifth year following acquisition.
We no longer take on full-service mandates in Budapest. Very few diagnostics are offered, with defined transactions selected case by case. If accepted, the diagnostic is paid and one-off. A request or focused question may receive no reply, and no response is guaranteed.
Review conditions and pre-qualify the caseInvestor contact: review the conditions and pre-qualify the case.
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Property transfer duty: NAV, official booklet no. 19, Duty on quid pro quo transfer of property. Foglaló: Hungarian Civil Code, Act V of 2013, section 6:185. Acquisition framework for foreign buyers: Act LXXVIII of 1993. Basic payment account in the EU: European Commission, Your Europe. Hungarian VAT framework: Act CXXVII of 2007. Personal VAT-exemption threshold: NAV official communication. Rental-income taxation and expense methods: NAV, official booklet no. 10. Tax on disposal of real property: NAV, official booklet no. 9. This article provides general information based on our experience and the sources cited, not legal, tax or financial advice tailored to your situation and your country of tax residence.