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Balla Consulting Guide

The Essential Guide
to Hungary

Practical Insights for Expats, Investors & Remote Workers

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Hungary is one of Europe's most attractive destinations for foreigners who are looking to have affordable living, investment potential, and access to the EU market.

Key Benefits

Why Hungary stands out for investors and expats

Central Location

Hungary is located in the centre of Europe and has excellent connectivity to Austria, Slovakia, Slovenia, Croatia and the East part of Europe. The country provides full EU membership benefits for those who move within the EU.

Budapest Airport is a strategic hub for business and holidays. It is well-connected to the Netherlands with six daily flights provided by KLM and WizzAir.

Cost of Living

Hungary offers a lower cost of living compared to Western Europe. Depending on the location, rental prices are often 40% to 60% more affordable.

Furthermore, public transportation and essential services remain considerably cheaper than in most Western European countries.

Best Cities to Live & Invest In

From the capital to emerging regional hubs

Debrecen Great Reformed Church

Debrecen

East of Hungary

  • Major industrial developments: Large-scale manufacturing projects
  • Rising Housing Demand: Driven by company development and local university growth
  • Strategic Location: Ideally positioned for trade and logistics with Ukraine and Romania
Szeged Cathedral

Szeged

South of Hungary

  • University city with stable rental demand
  • Lower entry prices
Győr city center

Győr

West of Hungary

  • Strong economy (automotive industry)
  • Proximity to Austria and Slovakia

Residency, Tax & Cost of Living

Simple tax structure, affordable living

Residency & Visas

  • EU citizens: Can live and work freely in Hungary
  • Non-EU citizens: Require a residence permit

Income Tax Basics

Hungary has a simple tax system:

  • Flat income tax: 15%
  • No progressive tax brackets

Rental Income Taxation

  • Rental income tax: 15% — Certain cost deductions may apply
  • Investment Optimization: Option to use a Kft (equivalent of the Dutch B.V. or an American LLC) with a 9% corporate tax

Cost of Living

Rent

  • Budapest city center average: €600–€1,300/month, depending on the location & flat size
  • Outside center / smaller cities: €400–€900/month, depending on the location & flat size

Utilities

  • €100–€200/month depending on size and usage

How to Buy Real Estate in Hungary

A safe, straightforward, and investor-friendly process

1

Property Selection

Identify and evaluate the right property based on your budget and personal goals.

2

Hire a Lawyer

A licensed Hungarian lawyer/notary is legally required to prepare the contracts and handle the process.

3

Verify Ownership

The lawyer will control the ownership and the debt status via the Land Registry.

4

Offer & Negotiation

Submit an offer and agree on the price and terms with the seller. The lawyer prepares and countersigns the official purchase agreement.

5

Deposit & Registration

A 10% deposit is typically required to secure the property. Once the contract is signed and the deposit is paid, the lawyer submits the documents to the Land Registry to register the partial ownership.

6

Payment of Remaining Balance

The final payment is completed via bank transfer according to the timeline in the contract.

7

Final Registration

The Lawyer submits the agreement at the Land Registry for full ownership. Ownership is officially transferred once the full price is paid and the Land Registry completes the registration.

Foreign Buyer Rules

Accessible for both EU and non-EU citizens

EU Citizens

Can purchase property under the same conditions as Hungarian citizens. No special permits are required.

Non-EU Citizens

Non-EU citizens must obtain a purchase permit from the local government office. The process is standard and typically takes 30–60 days. Applications are approved if the paperwork is submitted correctly and professional advice followed appropriately.

Costs of Buying Property

Relatively low compared to Western European markets

Property Transfer Tax

4%

Of the purchase price (paid after the sale is finalized)

Legal Fees

~1%

Of the property value (+ VAT)

Renovation Costs

10–20%

Extra budget depending on the condition of the property. We recommend organising a technical inspection for a renovation estimate prior to agreeing on the price.

Due Diligence

Essential reviews before finalizing the price

Land Registry Check

Confirms the seller is the true owner and identifies any mortgages, liens, or restrictions. This can be done individually or by a legal representative.

Debt Check

Ensures the property is free of unpaid utility bills or other financial claims.

Condition Review

We recommend a technical inspection of the condition of the property in order to calculate the total purchase cost. The lawyer coordinates the legal checks, but technical inspection is often handled by a third-party architect or renovation professionals.

Timeline & Summary

Typically 1 to 3 months from start to finish

The purchase process in Hungary typically takes between 1 and 3 months, depending on the complexity involved, such as permit requirements for non-EU buyers or bank financing.

The Hungarian real estate process is transparent, legally secure, and accessible to foreign investors. With the right professional advice, it offers easy entry into one of Europe's most attractive property markets.

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