Frequently Asked Questions
Is there any restrictions for foreigners to buy a property in Hungary?
EU citizens may acquire ownership of real estates situated in Hungary with no restrictions, with the same terms and conditions as Hungarian buyers. The only exceptions are Agricultural and Forest lands.
Non-EU citizens need to obtain permit for acquiring ownerhip of a real estate. This is more of a formal procedure, than a real permit, however CRB check is to be submitted with the claim. The procedure takes appr. 60 days and the stamp duty of HUF 50,000 has to be paid (€150).
Is there any leasehold property in Hungary?
No.
Ability to get a mortgage for foreign nationals?
Foreign natural person may receive bank loan up to the amount of 50-70% of the value of the property. Bank statements, proof of income and proof of address documents are required.
How long does the mortgage application take?
It normally takes 6-8 weeks (depending on the bank). The Finance Advisor carries out an official pre-approval before any mortgage application to the bank (it is free of charge).
Can I apply for mortgage in any other currency?
No, the mortgage loans are based in Hungarian forint (HUF) only.
What are the additional costs of the property investment?
Duty stamp: 4%
Legal costs: 1%
Service fee: 1%
Setting up a company in Hungary?
Hungarian Limited Liabilty companies (Kft.) can be registered with i.) a single shareholder and ii.) a single director, both of whom can be of any nationality and are not required to be ordinarily resident in Hungary. All Hungarian companies are required to i.) prepare annual financial statements and ii.) file them in the Company Register every year.
Generally it takes 2 weeks to set up a Hungarian company and 3 weeks to open a company business bank account.
Does the client need to travel: No
Resident Director required: No
Hungarian Corporate tax rate: 10%
Can rent an office in Hungary: Yes
Can buy property in Hungary: Yes
Mortgage: No (the company has to be incorporated for minimum 2 years)
Rate of taxation for oversees owners?
15% (after net profit)
Special taxation rules on landlords?
No.
Licences required for landlords?
No.
Rules on selling a property within a set time period?
The Capital Gains Tax is 16%.
1styear: 100% of the profit;
2ndyear: 90% of the profit;
3rdyear: 60% of the profit;
4thyear: 30% of the profit;
5thyear: 0%.