Introduction - Purchase & Living cost - Buying guide
Letting - Other Information

Introduction

Typically a 20% deposit on signing of the contract followed by stage payments dependent on the seller, usually related to the staged process of the construction.

Purchase & Living Cost

Payment Terms

Typically a 20% deposit on signing of the contract followed by stage payments dependent on the seller, usually related to the staged process of the construction.

 

For resale property

10% non-refundable deposit with 90% payable 30-60 days after deposit (Note that is if the seller does not fulfil the contract he/she pays double the deposit).

 

Purchase Tax

Resale properties

The buyer pays 6% stamp duty of the contract price

 

New developments:

On new developments stamp duty does not apply up to 30,000,000 HUF (approx €120,000). Above this 30,000,000 HUF the resale property stamp duty is valid.

 

N.B. If you buy the property as a company with the intention of re-selling within 2 years time, you pay 2% Stamp Duty. However you must declare this in the purchase contract. If you do not fulfil this you will pay a fine up to 10%

 

Other Purchase Cost

Solicitor’s charges vary in location and work requirement. Costs are typically 1% of the purchase price.

 

A 3% purchase fee is payable. This is standard throughout Hungary.

 

Good quality furnishing can be budgeted at approximately €6000 - €8000 for a standard apartment.

Communal Charges (if applicable)

These may vary according to the size and value of the property you purchase.

 

A guideline figure for 2/3 bedroom apartment

• House maintenance, approx. €360/year - paid by the tenant

• Building insurance, approximately €100/year- paid by the owner

 

All the above amounts can only be used as a guideline as actual costs will vary depending on property size and usage.

Buying Guide

Who can buy?

Citizens of the EU and any other countries can purchase a property in Hungary with legal permission.

 

The permit is prepared by a lawyer, at an approx. cost of €400. The only restriction is that the property cannot be on military designated land.

 

Limit: 1-2 properties per persons buying as individual, if more, you must establish a Hungarian company.

Tenure of Property

All property in the Hungary is "Freehold".

Mortgage / Financial advise

There are currently mortgages available for a foreign citizen secured on a Hungarian property. Please contact Aquavista for further details. The loan is granted for a period of 1-15 years, the finance will cover up to 50% of the purchase cost of the property.

 

There are alternative means of funding a purchase of your property and Aquavista Property Consultants Ltd has an independent, UK based financial adviser who can discuss with you the options. Please contact us for further information.

Legal Documents

We always advise that you use a lawyer to complete your purchase and we can provide the names of several Hungarian/English lawyers in Hungary on request, although each of our Associates has access to lawyers. The method in Hungary is very fast, the same day you buy the property your name is on the Property Deed as a remark.

 

Our Associates will prepare a Contract that will detail your property, type, etc together with the price agreed, payment method and any extras or alterations you may require. This Contract Agreement is binding in Hungarian Law and will be in both English and Hungarian.

Tulajdoni Lap

The TULAJDONI LAP is the Hungarian property deed. You will receive a TULAJDONI LAP whether you buy either a new or a resale apartment

Maintenance

For your peace of mind, if you are a non-resident, the PROPERTY MANAGEMENT DEPARTMENT of our Hungarian associate offers a full maintenance service to ensure your property is kept in A1 condition during your absence. Details of services and costs are available on request in relation to a particular property.

Letting

The letting potential in all the areas sold by Aquavista is very good. All associate Companies of Aquavista can offer you a full letting service, which includes marketing, reception services for arrivals and departures, cleaning and linen services. Charges for this service may vary but a guideline figure is 10% of gross rental income and this would be taxable income.

 

This is a professional, ethical, and confidential service. We use one year leases although many of our tenants extend their lease for a longer period. We also use background checks for all prospective tenants

 

The properties are kept in excellent condition and you can visit your property with our associates when needed.

 

The management fee is tax deductible. There is no charge to inspect the property or to write new leases. This could save you hundreds of euros every year compared to other management companies.

 

Most importantly, after the sale is complete, our associates provide expert property management services. They will handle the day-to-day responsibilities of dealing with tenants, collecting rents, making needed repairs and more, to manage your investment for maximum cash flow and capital gain. The actual rental yield in Hungary is approximately 5-6% per annum.

Other Information

Residency

EU rights and restrictions are valid.

All other countries must ask the Hungarian Embassy or Consulate in their home country.

Work Permits

EU rights and restrictions are valid.

All other countries must ask the Hungarian Embassy or Consulate in their home country

Social Security

For general details and information of the social security agreement between the UK and Hungary explaining national insurance contributions and benefits visit www.dwp.gov.uk (Dept. for Work and Pensions).

UK Pension

United Kingdom retirement pension is payable in Hungary at the rate which is payable as if you were in the United Kingdom.

Medical Insurance

There are government run and private hospitals in Hungary, although you may, under the reciprocal agreement between the UK and Hungary, be entitled to certain medical services it is advisable (cont’d) to take out private medical insurance cover to ensure you can obtain the level of treatment you require. Costs of course will vary on the level of services required and covered.

Tax Regulations

Any earnings from property lettings in the Hungary is subject to tax. For international tax issues and double taxation relief and for information on your UK tax liabilities visit www.inlandrevenue.gov.uk

 

To view previously asked questions on purchasing property in Hungary, and commonly asked questions click here