Questions & Answers

LEGAL QUESTIONS...

1. Are there any limitations for foreigners buying a property?

The Head of the Public Administration Office shall only grant permission to a foreign legal or natural person to acquire the ownership of real estate neither considered as an agricultural land nor as a nature conservation area – except inheritance- , if it does not violate public or local governmental interests.

Purchase of real estate by foreign nationals must be permitted if it does not violate local governmental or any other public interests, and

• the foreign national has acquired title to the ownership of the real estate according to the regulation of Expropriation, or
• the foreign national has exchanged the owned domestic property for another domestic property, or
• the aim of acquisition of property is the termination of the co-ownership, or
• the foreign national has resided for work in Hungary for five years as demeanor.

The Head of the Public Administration Office shall require a declaration from the mayor of the local authority based on the location of the real estate if the acquisition of real estate violates local governmental interests. Taking into account the declaration, he may refuse to grant the permission.

Permission might be refused if the state according to the foreign national’s domicile or an international agreement does not grant reciprocity for the Hungarian natural or legal persons. Declaration of Ministry of Foreign Affairs shall be competent to determine if such an international agreement or reciprocity exists.

A competent Authority based on the location of the protected real estate shall conduct the procedure of acquiring title to a historic monument, a historic building, protected archaeological and historical buildings, and real estate located in natural preserve.

2. What are the rules for EU citizens?

EU nationals and legal persons and unincorporated entities established in any Member State of the European Union, in a Member State who is a party to the Agreement on the European Economic Area, or in other similar States may acquire title of ownership of non-agricultural land under the same conditions applicable to resident persons (without special permission) following the date of the Act promulgating the treaty on the accession of the Republic of Hungary to the European Union entering into force, with the exception of properties serving as secondary place of residence, which may be acquired subject to permission by the head of office for five years following the above-specified Act entering into force (hereinafter referred to as “transitional period”).

An EU national who has been legitimately residing in Hungary for at least four consecutive years may obtain title of ownership to a property serving as secondary place of residence without a special permit.

The EU national shall produce an official certificate issued by the immigration authority responsible for the place where his regular or habitual residence is located to verify his compliance with the criteria set out in Subsection (2). This official certificate shall be enclosed with the application for the registration of the transfer of title of the property in the real estate register.

3. If I’m purchasing a property what are the fees?

Transfer duty is 2% after only the first 4 million HUF part of the purchase price, for the part above 6%. In case of purchasing a newly-built property the stamp duty is only payable above HUF 15 million of selling price. If it’s not home purchase than the fees can be up to 10%.

4. Are there any exemption from duties and taxes if I’m first purchaser?

First purchaser of a new flat, who shall not be over 35 years is entitled for an allowance 50 % of his duty but maximum HUF 40.000 if market value of his flat is not above HUF 8 million. If he acquires part ownership right of a flat, his part is entitled allowance commensurate the ownership right.

First flat-purchaser is: who hasn’t got residence or part-ownership right in a flat, who hasn’t got over 50 % or valuable rights and interest to a flat registered in the real estate registry database.

5. Is there any allowance for the purchase of newly built property?

In case of purchasing a newly-built property the stamp duty is only payable above HUF 15 million of selling price. Exempt from duties is that buyer, who acquires ownership right or part of ownership right of a new-built real property from an entrepreneur, who is registered in the company register, to commercialize real estates, for the purpose of re-selling, provided that the entrepreneur sells the real property maximum value of HUF 15million.

6. Is there any allowance for the purchase of building plot?

Acquisition of ownership (ownership ratio) of a plot of land suitable for the building of a dwelling house, and of rights of pecuniary value established on such real property, if the party acquiring the property builds a dwelling house on the real property within 4 years of submitting the contract for the imposition of the duty. The party acquiring the property may make a declaration concerning his intention to build a dwelling house to the Duties Office until the order concerning payment of the duty becomes final an absolute.

7. Subject of Duty on Inheritance

Subject of duty on inheritance: acquisition of property on the basis of inheritance (including also acquiring a sum from the account of the testator as a member of private pension fund by the and redemption of beneficiary right), legacy and will, acquisition of legal share of inheritance, and donation for the event of death. Rights of pecuniary value registered in the real estate register which continue to exist regardless of any change (inheritance) in the persons of the owner of the thing shall not be subject to duty on inheritance.

Subject of duty on donation:

a) donation of real property,
b) donation of movable property,
c) free-of-charge establishment of rights of pecuniary value, free-of-charge cession of such rights, or the exercise thereof, and waiver of such rights without any consideration.

Income tax is 25% (or in case you have a company here, you only have to pay corporate tax) and due to be paid here in Hungary.

8. Duty on Acquisition of Commercialize Real Estates for the Purpose of Re-selling

Acquisition of ownership right of real property by an entrepreneur entitled, according to the company register, to commercialize real estates, for the purpose of re-selling, provided that the entrepreneur sells the real property within one year of reporting the acquisition for the imposition of the duty. If the entrepreneur fails to verify alienation of the ownership right of the real property with a contract suitable for effecting an entry in the real estate register, within 15 days of the expiry of the deadline, at the latest, the Duties Office shall establish the duty.

9. Exempt from the duty on onerous transfer of property:

Acquisition of ownership (ownership ratio) of a plot of land suitable for the building of a dwelling house, and of rights of pecuniary value established on such real property, if the party acquiring the property builds a dwelling house on the real property within 4 years of submitting the contract for the imposition of the duty. The party acquiring the property may make a declaration concerning his intention to build a dwelling house to the Duties Office until the order concerning payment of the duty becomes final an absolute.

Establishing allowance must not taking consideration flat burden widows enjoyment and flat alienated before legal age of the purchaser. Considering not a first purchaser who requested duty allowance before this duty has risen. Acquirer party must declare requisition allowance and existing terms of allowance until duty payment.

FAQ: ABOUT SELLING A HOUSE

10. What is the first step to sell a property?

Contact the nearest DH office. One of our colleagues will get in contact with you to go through every step of the process. DH has been paying great attention for making its customers satisfied. You will be able to view our up-to-date offers of the properties. Click here

11. What are the conditions at DH?

Based on its nationwide network, DH can offer any given property to our existing or potential customers through its 107 offices and nearly 1000 salespersons. Our customers receive a complete package of services which wouldn’t set them at risk of the project. If you need more information please contact the nearest DH office! Click here

12. Does Duna House ask exclusivity?

When you decide to choose Duna House to sell your property, you can be sure, that your property will be introduced to only pre-qualified, genuine purchasers. The so called „exclusive agreement” has plenty of advantages – selecting this construction means that Duna House make all possible efforts to advertise your property (in popular mediums) free of charge – ensuring to reach the utmost potential buyers.

13. Where sells Duna House properties?

Our network developing continuously, Duna House offices could be found in growing number of cities. See the office nearest to you here.

FAQ: ABOUT BUYING A HOUSE

14. What are the conditions at DH?

We have set as a goal, to offer quality, safe and cost effective investment management providing all the needs and wants of our clients. Our experience is that when buying a property, people tend to be driven not only by the price, features and location of the property but also by personal emotions. If buyers do not feel themselves to be important then they will buy elsewhere. Having realized this, DH has been paying great attention to making its customers satisfied.

15. How to find the property?

Looking for your dream home? You can start your property search right here or contact your nearest Duna House office.

Preview the listings that fit your dream and budget!

16. What to do if I find a property?

Contact the nearest DH office and they will give you all the information or send us an e-mail. Click here

17. What to do if I don’t find the right property that suits me on the DH database?

Contact the nearest DH office and our professionals will solve the problem, discovering properties in the market that fits for your needs. Our offers are growing with hundreds of properties week by week, so if one suits your needs our agent will contact you immediately.

The text above not a survey of legal information. If you are ready to sign contract or you have further questions, please, as an advice, contact your solicitor or accountant!