Answers to the questions French investors most often ask before buying in Budapest.
Can a foreign investor legally buy property in Hungary?
Yes, for a standard residential property. An EU investor buys without the prior authorization required of certain non-EU buyers, agricultural land being subject to separate rules. Title and lien verification remains handled by the local lawyer.
How can a Budapest property project be financed?
In the vast majority of cases, with equity. In our experience, Hungarian financing for a non-resident earning income abroad remains rare, selective, and highly dependent on the bank, the currency of the applicant's income, the down payment, and the overall profile of the case. It should never be built into an investment plan before written approval has been obtained. Home-country banks, for their part, rarely finance a property located outside their own market.
How do you open a bank account in Hungary?
Opening one has become noticeably more demanding than a few years ago. Under EU law, a person legally resident in the European Union may request a basic payment account in another member state, even without residing there. This right guarantees neither credit, nor an overdraft, nor immediate approval. In practice, banks have significantly tightened their checks: many require a Hungarian tax number, translated supporting documents, sometimes an in-branch visit, and apply their compliance and anti-money-laundering procedures. A concrete property project makes things easier: it is exactly the genuine connection to the country that banks ask for. For non-EU nationals, requirements are stricter still and vary from bank to bank. Either way, it is better to prepare this application ahead of the purchase.
What criteria matter most when choosing a property?
Location, price, and rental potential. That third criterion reads differently since 2026: short-term rental has become uncertain in several districts, while student housing and long-term rental remain safe bets.
How long does a purchase take?
Once the legal checks are complete and the contract is ready, the purchase agreement can be signed within a few days. Payment, land-registry filing, and handover generally take a few more weeks, depending on the agreed timetable. Most of the work happens before, in the property search, and after, in overseeing the renovation and fit-out.
How is rental income taxed in Hungary?
For an individual, rental income is subject to income tax at a rate of 15%. Depending on their situation, the taxpayer deducts substantiated actual expenses or applies a flat 10% allowance. Hungary has no uniform national property tax, though some municipalities may apply local taxes on buildings or land. The France-Hungary tax treaty prevents double taxation.
Should you invest through a company?
Setting up a Hungarian company, a KFT, remains possible. It generally only makes sense once you own several properties, enough to offset the incorporation costs over time.
What fees come with the purchase?
For a standard apartment, budget 4% in transfer duty on the value assessed by the tax authority. Legal fees come on top: the lawyer plays the central role in a Hungarian transaction, fees are set freely, often around 1% in the cases we handled. Always ask whether the quoted percentage is net or inclusive of VAT, as Hungary's standard 27% VAT rate may apply to legal services. Depending on the case, translation, administrative, banking, and currency-exchange costs also apply.
Is short-term rental still possible in Budapest?
In the 6th district, it has been banned since 1 January 2026. Elsewhere, a moratorium freezes new registrations until the end of 2026. Some existing permits can still be operated, but their validity after a sale or a change of operator needs to be checked case by case with a local lawyer. Our Why Budapest page covers this in full.
These answers provide general information, not legal, tax, or banking advice tailored to your situation. Sources and detailed methodology on Why Budapest.
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