Buying realty in Hungary does not guarantee getting a residence permit. However, the presence of property together with a good passive income and no criminal records in the past significantly increase the chances of getting a positive response from the authorities. The cost of living here is low, when compared with other European countries; the climate is mild, and taxes are not burdensome. How much you will have to pay for the maintenance and maintenance of housing in Hungary, what income and expenses you should expect.
Property taxes
A single purchase tax
After the registration of the property rights within one to two months, the new owner receives a letter from the tax department about the need to pay the state fee. Its size depends on the cost of the property: up to €11,000 – 2%, over €11,000 – 4%.
This notification is usually received by the lawyer who handled the transaction. In this case, the owner transfers the money to the deposit account of the lawyer, who tranfers the sum to the settlement account of the department and passes the client a document confirming the payment.
Features:
If you purchase primary housing, the state provides a benefit: objects worth up to €41,550 are not taxed; if the property is more expensive, the rate is 4%.
If you buy a house and not an apartment, the one-time fee is 10%, regardless of the value. You can avoid paying only if you buy land without construction and build a house on it within four years.
Annual property taxes
There is a land tax in Hungary, which is 1.0-1.5% of the property value. But it applies only to private property.
Apartment owners are usually exempt from the annual tax, but there are exceptions. For large resorts, such as Lakes Heviz and Balaton, there are specific requirements, since most of the housing there is rented by tourists. Therefore, if you purchase a resort property, you will have to pay a tax on the housing stock property.
In this case, the basis for the calculations is the initial cost of the property or floor space. The rate depends on the current indicator of the consumer price index, which is calculated by the Hungarian Statistics Center. During the last two years – €5-6 per sq.m or 3.6% of the cost of an apartment or house.
The notification of the need to pay the tax comes to the post office. If the amount is too large for you, you should contact the tax department and ask them to divide it into several parts. The terms of repayment and details will be indicated in the receipt received.
Residential property for sale in Hungary:
755 000 €
House in Budapest, Hungary
288 sq.m545
In the 2nd Buda district of Budapest, in its part on the border of the Pilis nature Reserve, a modern three-storey family house with a wonderful panorama of the city and surroundings is offered for sale. Exclusive surroundings, clean air, excellent infrastructure and transport links. French and American schools are within walking distance. Plot...
WESTINVEST
3 482 000 €
Villa in Budapest, Hungary
550 sq.m
In one of the most popular areas of Budapest, the 2nd district, on the southern slope of the hill, in a quiet, peaceful environment with low traffic, next to elegant buildings in demand among embassies, away from city noise and polluted places, close to the nature reserve, but only 3 km from the city center, for sale 4-one-storey luxury villa of...
WESTINVEST
532 000 €
Flat in Budapest, Hungary
127 sq.m43
Luxury apartments of new construction are for sale, in the heart of Budapest, next to St. Stephen's Basilica.The apartments were built through the reconstruction of the upper floor + the superstructure of an additional 2 floors in an elegant classic residential building. The apartments have a permit for operation.The area is lively and full of...
WESTINVEST
235 000 €
Flat in Budapest, Hungary
68 sq.m321
In the center of Budapest (District 7), near Andrassy Avenue, in a stylish house with a concierge,
for sale a modern apartment with 2 bedrooms.
The apartment is located on the 4th floor of a fully renovated classic house with an elevator.
The living room and the large bedroom face the street, the windows of the second bedroom look at the...
WESTINVEST
343 900 €
Flat in Budapest, Hungary
101 sq.m432
In an elegant house with a concierge, located in the 13th district, in a popular place called "Marina Part", a luxury renovated apartment is for sale.
The apartment is located on the 4th floor in a modern building with a swimming pool, gym and saunas, where you can relax and unwind after a hard day's work. Spacious bright living room, 3...
WESTINVEST
290 000 €
Flat in Budapest, Hungary
87 sq.m321
An apartment with major repairs is for sale in a luxurious classic house located on a green alley street, next to a renovated City Park, 5 minutes from Heroes Square, Andrassy Avenue, the famous Szecheni thermal bath. High ceilings, original authentic doors, a living room, a modernly equipped kitchen with a dining room - in a separate room, a...
WESTINVEST
1 200 000 €
Villa in Budapest, Hungary
381 sq.m654
In the popular green 2nd Buda district, a luxury villa with an indoor pool is for sale.
A luxurious 6-room villa with a unique layout, an indoor pool, with a beautiful panorama is located surrounded by wealthy villas of recent construction.
The interior design is made of the highest quality materials, the interior doors are made to order...
WESTINVEST
1 105 700 €
House in Budapest, Hungary
454 sq.m753
In the II district of Budapest, in its part called Testverhed, a semi-detached family house with panoramic views is offered for sale. Excellent infrastructure and transport links. Year of construction: 2009 Plot size: 907 sq.m. House size: 454 sq.m. Number of rooms: 7 Bedrooms: 5 Bathrooms: 3 Heating system: double-circuit gas boiler Technical...
WESTINVEST
2 400 000 €
Villa in Budapest, Hungary
385 sq.m654
Luxury and elegance in a picturesque green area, modern technology, harmony is present in everything In the 12th district of Budapest, in a picturesque environment, next to a protected area, a luxury villa is for sale.Living area 385 m2Rooms 65 bedroomsBathrooms 4Plot: 1500 m2Garage for 2 carsParking on the plot for 3 carsYear of construction...
WESTINVEST
225 000 €
Apartment in Budapest, Hungary
53 sq.m211
Online ViewingRemote Transaction
In Buda, in the 11th district, in the residence, green part of it with low-rise buildings with developed infrastructure and transport links, an apartment after a major overhaul in a 3-storey building on a high ground floor, almost the first. 50 m2, living room, kitchen, bedroom, separate bathroom and balcony 6 m2. The apartment is very bright,...
Perfect Invest Hungary Ltd.
720 000 €
Apartment in Budapest, Hungary
109 sq.m322
ResidenceOnline ViewingRemote Transaction
6th district, Anker köz 1-3, on Deák Ferenc tér square, with a full view of the square and 5th district. The house is an architectural monument of Ankerház, 2 elevators, one new. Apartment after a complete designer luxury overhaul on the 3rd floor, 109 m2 open plan living room with kitchen, 2 bedrooms, 2 bathrooms,...
Perfect Invest Hungary Ltd.
2 740 000 €
Villa in Budapest, Hungary
1000 sq.m108
In the elite 2nd district of Budapest, a luxury villa for sale, with a panorama of the surrounding green mountains.Built in 1996 in the Baroque style, the villa with a spacious living room, with many rooms, a garage for 6 cars, is located in a cozy landscaped garden (2050 m2) with century-old trees.- total built-up area of 1000 m2 on 4 levels,-...
WESTINVEST
560 000 €
Flat in Budapest, Hungary
100 sq.m42
In one of the most popular places in Budapest, on the Belgrade embankment (5th district), a furnished luxury apartment with major repairs is for sale. Elegant, bright and quiet 3-bedroom apartment with high ceilings, located on the 4th floor of an eclectic house, on the banks of the Danube, near the Central Market and Freedom Bridge, pedestrian...
WESTINVEST
1 100 000 €
Apartment in Budapest, Hungary
141 sq.m322
ResidenceOnline ViewingRemote Transaction
This rare to-the-market, large two-bedroom (all ensuites) apartment boasts a perfect location in the city centre and has a generous-sized balcony surrounding the apartment. It is located between Szabadság tér and Kossuth Lajos tér, offering excellent transport links around Budapest. The 141 m² spacious apartment is set...
Perfect Invest Hungary Ltd.
50 000 €
Studio in Budapest, Hungary
21 sq.m111
Online ViewingRemote Transaction
We offer a room in Budapest, which can be used as a beauty salon, workshop, office or as an apartment. Currently it is rented for 320 euros per month . The room has a showcase window and is located on the ground floor of an apartment building in the 8th district of Budapest near the Korvin shopping center. The small studio of 21 m2 has...
Invest Budapest
323 000 €
Flat in Budapest, Hungary
78 sq.m
This sunny apartment for sale is located in the Castle District of Budapest, overlooking the garden of the National Museum.
Object description
The apartment is on the 1st floor of the beautiful eclectic building of the Palace District. The property with approx. 78 m2 is accessible via 2 staircases. Both rooms offer a panoramic view of the...
Immotrading GmbH
102 000 €
Villa in Hungary
100 sq.m3
A renovation-ready single-family house in the village of Ádánd, located at 8653 Ádánd near Siófok at Lake Balaton, is up for sale. Ádánd is situated in South Transdanubia, Hungary, 11 km from Lake Balaton, the largest lake in Central Europe and one of Hungary´s key tourist destinations. The village, with approximately 2200 residents, is nestled...
Immotrading GmbH
53 000 €
Villa in Hungary
85 sq.m3
Small single-family house in the thermal town of Igal
The small town of Igal is located in South Transdanubia, Hungary, approximately 40 km from Lake Balaton, the largest lake in Central Europe and a key tourist destination in Hungary. The settlement, with approximately 1340 residents, is situated in the Somogy Hills landscape.
The M7...
Immotrading GmbH
508 000 €
Flat in Budapest, Hungary
118 sq.m4
Fully renovated apartment with a balcony, just a 10-minute walk from the famous Opera House and the largest Synagogue in Europe. The apartment is located in the very center of the city, offering easy walking access to all major attractions. Geographically located between the Danube and Heroes' Square, just 5-7 minutes away by the historic yellow...
NF Group
538 000 €
Apartment in Budapest, Hungary
89 sq.m322
ResidenceOnline ViewingRemote Transaction
5th district, near the pedestrian street. Vaci and the Danube embankment, st. Nyáry Pál, in a historical building with an elevator on the 5th floor, an apartment after a complete overhaul of 89 m2, 2 bedrooms, 2 bathrooms, open living room with kitchen, balcony 2 m2, air conditioning, alarm system, bio-fireplace, infra-sauna. High...
In comparison with other European countries, utiies in Hungary are cheap.
Almost every apartment building has a homeowners' association (HOA), which is mandatory to join if you are the owner of an apartment in the complex. The HOA is fully responsible for the general condition of the house: repairment, maintenance and improvement of common areas.
The monthly fee of the HOA (közös költség) also includes home insurance. Depending on the type of partnership, water and central heating may be included in the total bill.
The fee is calculated based on the floor space of an apartment and the incoming services. Usually it costs about €40-100 per month. The total bill includes a fixed amount for the maintenance of the house (€0.7-1.5 per sq.m) + general renovation. In the latter case, the fee may vary depending on what needs to be done in the house. If there are no specific issues, the starting point is €0.4-0.5 per sq.m. If you need to fix the roof urgently and all the owners of the house agree with this, the general meeting decides to what level and for what period of time you need to increase the fee.
For what else you will have to pay for
Water. The rate varies depending on the city. For example, in Budapest, the cost of a cubic meter is approximately €1.3 + a fixed fee of €0.5 per month. In Biatorbágy, the rates are much higher – about €2.7 per cubic meter.
Gas. It is much more profitable to use gas than electricity: the cost of a kilowatt is €0.03. The cheapest option is to have a circo in the apartment – its own boiler that heats hot water for both batteries and showers. In old houses, this option or a convector/boiler is most often used; in Soviet panel houses, heating and water heating are often centralized.
Electricity. The cost of a kilowatt-hour is about €0.11.
The Internet. Each house usually has its own service company, that is, you can not choose a provider. On average, for a package that includes phone and Internet, you will have to pay about €20-25 per month.
Insurance. An optional service, but if you want to insure specifically your apartment and property-get ready to give about 0.1% of the value of the property per year.
How to pay for utilities. Water bills (if the calculation is based on the meter), gas and electricity are paid separately. In Hungary, there is a prepayment of utilities. So, the owner or tenant initially pays an amount when settling in, which is calculated on the basis of last year's expense or costs for similar housing (if we are talking about a new building). Then, after certain intervals of time, the management company recalculates measures.
The terms and conditions of recalculation vary depending on the resource and the company.
Recalculation of electricity measures happens once a year. If there is an overpayment, the company returns the difference to the card, and informs the owner if they have to pay extra.
Recalculation of the gas – every three to four months, but the system is different: in case of underpayment or overpayment, the corresponding amount is added or deducted from the next invoice.
The water charge is calculated by the meter, and the bill comes about once every six months.
Invoices are sent to the payer's address. For payment, you can set up an auto-payment from your account in a Hungarian bank or make a payment yourself each time via the Internet.
Lease
Profitability. According to local realtors, the profit from the rental of housing in Hungary is on average 6-10% per annum, depending on the type of property, season and region. Meanwhile, rental housing in Hungary continues to become cheaper, and the yield decreased in 2020 by 25%.
Bids. The cost of short-term rent in Budapest starts from €15-20 per day, if we are talking about a comfortable studio apartment. In the season, the rates are increased by one and a half to two times.
In general, it is cheaper to rent a house in Budapest than in most neighboring European capitals.
Taxes. Rental income is taxed at a fixed rate of 16%. The tax is levied on the net profit, that is, after deducting the actual and documented expenses incurred in the rental process, such as lighting, maintenance, administrative costs, etc. But the amount of deductible expenses should not be more than 25%.
Before renting out property, you must notify the municipal authorities. A contract is necessarily concluded, according to which the tenant pays only directly for the apartment or house. If the owner wants to transfer the obligations to pay for utilities, the tenant must enter into contract with resource suppliers in their own name.
Management company. Takes care of all the concerns related to the realty maintenance. The price for the work starts from €50 per month. The main range of services – payment of utility bills, cleaning and airing of the apartment, checking the housing three or four times a month. If you additionally need them to search for tenants, communicate with them, and accept payments, the company charges about 6% of the rental income.
Market trends. Despite the pandemic, the demand for residential real estate in Hungary is growing. And although the overall price growth has slowed down, new buildings began to rise rapidly in price.
Taxes. When selling a home, you must pay capital gains tax. Tax base is the difference between the purchase and sale price. You can deduct the cost of buying, repairing and other investments in the property, which you can document. The base rate is 25%, but the state provides benefits depending on the period of ownership.
If you sell your property in less than a year after the purchase, there are no benefits are provided; if in the second year of ownership, then you must pay only 90% of the tax due, in the third - 70%, in the fourth - 50%, in the fifth - 10%. If more than five years have passed since the purchase, you do not need to pay tax. If you use the money immediately to buy another realty object, you do not have to pay the tax either.
Example. You bought an apartment more than three years ago for €250,000, and you are selling it for €300,000. The tax base is €50,000. Let's assume that the cost of improving the housing and the cost of processing the transaction amounted to €20,000. 25% of €30,000 – €7,500. Since at the time of the sale it was your fourth year of ownership, you need to pay 50% of the amount received, that is, €3,750.
You can also use a calculator to count the exact amount you need to pay.
Additional expenses. The main share of the costs associated with the sale falls on the buyer. The stamp duty and payment of all necessary documents will result in approximately €250; for the services of a lawyer, you have to pay 1-2% of the transaction amount (at least €1,000). But the commission to the realtor, which is 3-5% of the sale price, is often paid by the seller.
