Our team answers all your questions
It is often necessary to invest own funds since it is difficult to obtain a loan from a Hungarian bank for a non-Hungarian resident. Moreover, foreign banks are reluctant to grant a loan for a property located outside their regions of activity.
We focus our search on specific criteria for each investor. Nevertheless, three main criteria such as location (an area of significant rental demand), price (ideally below market) and potential rental return (return in line with our investors’ expectations) form the basis of an efficient search to which numerous secondary criteria are added.
The acquisition process is very fast in Hungary. Once we have selected a property that meets your expectations, the organization of the purchase takes only a few days. The most labor-intensive part of the investment process is the search for the right property (in line with all the necessary criteria) as well as the realization and supervision of the works followed by the interior design and decoration.
Translated with www.DeepL.com/Translator (free version)
Real estate income can be taxed at the unique Hungarian tax rate of 15% (of the net rental income excluding expenses), which allows you to benefit from an advantageous tax system. In addition, there are two possibilities to reduce the taxable base according to what is most advantageous for your situation. You can benefit either from a flat-rate deduction of 10% or from a deduction of your real expenses. It should be noted that there is no property or housing tax. Finally, the existence of a double taxation agreement between France (and other countries) and Hungary allows you not to pay property tax in France (and other countries) on your Hungarian real estate income.
It is possible to create a company to invest in Hungary, in particular a KFT (equivalent to a limited liability company), which has advantages but also certain constraints. On the other hand, this process is justified only for the purchase of several properties in order to be able to amortize the expenses of constitution and operation of such a structure.
There are two main costs when buying a property, the transfer tax of 4% and the equivalent of the notary’s fee of 1% of the purchase price (carried out in Hungary by a lawyer). So in total, the acquisition costs are about 5%.
Yes, you have the same rights as Hungarian investors. There are no legal restrictions for EU investors to invest in real estate in Hungary.