Balla Consulting Guide
The Essential Guide
to Hungary
Practical Insights for Expats, Investors & Remote Workers
← Back to HomeHungary 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 major Central European gateway, offering direct connections to most major European cities and an expanding network of international destinations.
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
Budapest
Capital City
Budapest is the economic center of Hungary, offering the widest range of facilities.
Pros
- Strong rental market
- International community
- Best infrastructure
- Higher growth potential
Cons
- Higher property prices
- Increasing regulation on short-term rentals
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
South of Hungary
- University city with stable rental demand
- Lower entry prices
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
Property Selection
Identify and evaluate the right property based on your budget and personal goals.
Hire a Lawyer
A licensed Hungarian lawyer/notary is legally required to prepare the contracts and handle the process.
Verify Ownership
The lawyer will control the ownership and the debt status via the Land Registry.
Offer & Negotiation
Submit an offer and agree on the price and terms with the seller. The lawyer prepares and countersigns the official purchase agreement.
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.
Payment of Remaining Balance
The final payment is completed via bank transfer according to the timeline in the contract.
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.
Legal Requirement
In Hungary, a licensed lawyer/notary must be involved in every real estate transaction. They are responsible for:
- Drafting and verifying the contract
- Conducting a full legal review of the property
- Submitting all necessary documents to the Land Registry
- Ensuring the transaction complies with Hungarian law
The Hungarian legal system provides European Union standardized and risk-free purchase transactions.
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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