All about Property Purchase for Expats in Hungary

Užitočné informácie KÚPA All about Property Purchase for Expats in Hungary

Foreign natural or legal persons can purchase a property in Hungary with the permission of the regionally competent Government Office.
 

Permission is NOT required in the following cases:

  • For citizens and organizations with or without a legal entity from the countries of the European Union ( Austria, Belgium, Bulgaria, Croatia, Cyprus , Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia , Lithuania , Luxemburg, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden) The Czech Republic, The Netherlands) 
  • Citizens and organizations with or without legal entities of the European Economic Area / European Free Trade Association states ( Norway, Liechtenstein, Iceland )
  • Citizens of Switzerland ( based on the agreement about the free move of people in the article CXXV of the law in 2006 )
  • People with dual citizenship if one of these is Hungarian or any other EU country
  • In case of Inheritance.

 
Aside from the above mentioned cases, foreigners can purchase a property ONLY with the permission of the regional Government Office.
 
 
For natural persons, who are not citizens of any of the above mentioned countries the permission regardless of their status in Hungary ( resident, immigrant, registered refugee ) the governmental permission is necessary. The following obligations and documents are to be filed by a legal attorney to the respecting Offices.
 
 

DOCUMENTS NECESSARY FOR THE PERMISSION 

1.     REQUEST – The procedure starts by submitting the form of request to the locally authorized Government Office.
 
2.     FEE – A fee of 50.000 is payable per property
 
3.     A copy of the passport, driving license or Hungarian Identity Card certified by a notary must be attached to the request.
 
4.     A preliminary agreement or a contract about the purchase of the property and a title deed, not older than 21 days must be attached to the request.
 
5.     AUTHORISATION – If the petitioner is not acting personally in the procedure, in every case we need an original copy of the authorization naming his /her legal representative or any natural person authorized.
 
6.     Obtaining a CRB Certificate
 
 
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THE PROCEDURE FOR OBTAINING THE PERMISSION

If all the necessary documents are submitted, the Government Office is going to contact the mayor of the local municipality to obtain a declaration if the purchase of the given property would be against municipal interest. 
During the procedure, the Government Office is going to contact The Office of Immigration and Citizenship and the National Police Headquarter in question of injured public interest ( exclusionary order, residence restraint, warrant of arrest ).
 
The decision regarding the permission will be taken by the Goverment Office. The deadline of the procedure is 15 days, that could be extended once for other 15 days.

 

HOW TO GET FINANCE TO PURCHASE A PROPERTY?

Most people as private buyers obtain finance from their own country and most purchases are made by cash rather than by mortgages. This is because the better amount of them has limited access to mortgage loans as a foreigner. In case one wishes to proceed with a mortgage they should be able to present some credentials to prove their settlement in Hungary namely:

  • Permanent address in Hungary
  • Tax ID
  • Residence- work, or settlement permit in Hungary
Being able to submit all these is essential but not sufficient condition in order to be entitled to a mortgage. Different banks may ask the applicant to meet other distinctive requirements so personal consultancy with the chosen bank beforehand is necessary. 


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