Buying an apartment in Budapest, step by step

Who can buy, and when a permit is needed

Citizens and companies of EU member states, of the EEA (Norway, Iceland, Liechtenstein) and of Switzerland buy an apartment without prior approval. Also exempt are dual nationals where one nationality is Hungarian or of an EU state, refugees, acquisition by inheritance, and certain British citizens who were already living in Hungary before the Brexit transition period ended ^[1].

All other buyers, whatever their residence status, need an acquisition permit. For property in Budapest, the application goes to the Budapest Főváros Kormányhivatala (Budapest Capital Government Office). The legal basis is Government Decree 251/2014 ^[1][2].

• Fee: HUF 65,000 per property. A reduced fee of HUF 13,000 applies in one specific case: a foreign national with free-movement or settled status who has applied for Hungarian citizenship and is buying a home ^[1].
• Legal deadline: 45 days. The office may request missing documents once ^[1][2].
• Documents: official application form, certified copy of the passport, the contract or preliminary contract (original or certified copy), a land registry extract no older than 21 days, a power of attorney if a lawyer acts for the buyer, and proof that the fee was paid ^[1].
• Checks: the office consults the district municipality and checks for entry bans or arrest warrants. The permit is refused if the purchase harms the public interest or the municipality's interest. The decision can be challenged before the administrative court within 30 days ^[1].

In practice, the contract is signed on condition that the permit is granted, and registration at the land registry follows once it is issued.

The offer and the foglaló (deposit)

A purchase usually starts with a written offer, sometimes with a reservation payment. The terms of such a reservation are purely contractual: read who keeps the money if the deal fails, and on what conditions.

The binding commitment comes when the sale contract (or a preliminary contract) is signed and the foglaló is paid. It is often about 10% of the price, but no law sets the amount ^[4][3]. Its effects come from the Hungarian Civil Code (Ptk.) ^[4]:

• if the sale fails because of the buyer, the seller keeps the foglaló;
• if it fails because of the seller, the seller repays twice the amount;
• if neither party is responsible, or both are, it is simply returned;
• a court can reduce a foglaló it considers excessive.

The contract must name the payment explicitly as foglaló. Otherwise it is treated as előleg (an advance payment), which is generally refundable ^[4]. A point for buyers who borrow: a refused mortgage can be treated as the buyer's fault unless the contract says otherwise, and the seller has to agree to that clause ^[4].

The lawyer and the title check (tulajdoni lap)

In Hungary, a property sale contract must be drawn up or countersigned by a lawyer (ügyvédi ellenjegyzés), or executed as a notarial deed, before it can be registered at the land registry ^[3]. Since 15 January 2025 the land registry runs electronically (E-ING), and the countersigning lawyer submits the documents electronically ^[5][3]. The buyer can appoint their own lawyer; the cost is covered in the resource on costs.

Before signing, the lawyer checks the tulajdoni lap (title deed extract). It has three parts: the property description (I), the owners (II), and rights and encumbrances (III): mortgages, usufruct, bans on sale, enforcement notes and pending filings. A certified electronic copy costs HUF 4,800 and a certified paper copy HUF 10,000 ^[11].

Other points to check:

• the condominium's deed of foundation (alapító okirat) and house rules;
• a statement from the common representative (közös képviselő) that there are no arrears on common charges;
• that there are no debts to the energy and water suppliers;
• the energy performance certificate, which the seller must show by the signing date at the latest and hand over by the handover at the latest ^[10];
• whether any works done in the apartment or building were properly permitted.

The sale contract and payment

The contract identifies the parties and the property by its lot number (helyrajzi szám), and sets the price, the payment schedule, the foglaló, the handover date and, for a non-EU buyer, the permit condition. It also contains the seller's registration consent (bejegyzési engedély), without which ownership cannot be transferred.

The balance is usually paid by bank transfer, often through the lawyer's escrow account (ügyvédi letét) ^[3]. A common practice is for the lawyer to hold the registration consent until the price is paid in full, which protects both sides. With a mortgage, the bank pays the seller under its own conditions once the mortgage and its security are in place; registering the mortgage costs HUF 20,000 ^[11].

Electronic signatures, or authentication through the government AVDH service, are now used to sign land registry documents ^[5]. A buyer who cannot be present can act through a power of attorney; where a permit is needed, the government office requires the power of attorney to cover the permit procedure explicitly ^[1].

Land registry (földhivatal) and transfer duty

The lawyer files the registration application electronically. The filing timestamp fixes the application's rank, and a provisional note (széljegy) appears on the title extract ^[3]. The legal deadline for a decision is 60 days; in practice, registration often takes two to three months ^[6]. Shorter estimates have appeared since the switch to electronic processing: some simple cases can be decided automatically ^[5], and one law-firm network estimates 3 to 30 working days ^[3]. The fee for registering ownership is HUF 10,600 per property ^[11].

Together with the contract, the buyer files form B400, which reports the acquisition to NAV (the tax authority) and states any exemption claimed ^[7]. NAV sets the market value and later sends a decision. The transfer duty (vagyonszerzési illeték) is 4% of that value, 2% on the part above HUF 1 billion, capped at HUF 200 million per property ^[8]. Payment is due within 30 days of receiving the decision ^[7].

Since 1 January 2026, a buyer who sold another home in the five years before the purchase (or sells one within the following year) pays duty only on the difference in value, and can choose which sale to count ^[8]. Amounts and other reductions are set out in the resource on costs.

Documents you will need

• Valid passport or identity card; a certified copy for the permit file ^[1].
• Hungarian tax identification number (adóazonosító jel), requested from NAV on form T34 ^[9]. In practice it is asked for in the tax procedure linked to the purchase, so it is best for the lawyer to start the request early.
• Lakcímkártya (address card): issued to people who register an address in Hungary. Banks require a Hungarian address for a mortgage ^[12]; whether it is needed for a cash purchase by a non-resident should be confirmed with the lawyer.
• Acquisition permit for buyers from outside the EU, EEA and Switzerland ^[1].
• For a foreign company: a company register extract, proof of the signatory's authority, and a Hungarian translation by OFFI (the National Office for Translation) ^[1].
• Power of attorney if the buyer does not act in person ^[1].
• Electronic signature or access to the AVDH service ^[5].

Handover and utilities

The handover date is set in the contract, most often on full payment of the price. It is recorded in a handover protocol (birtokbaadási jegyzőkönyv) signed by both parties, noting the condition of the apartment, the keys handed over and the meter readings. The seller hands over the energy performance certificate by this point at the latest ^[10].

Using those readings, each contract is moved to the buyer's name: electricity, gas, water, district heating where relevant, and waste collection. The buyer also informs the common representative (közös képviselő) so that common charges are billed to them from the agreed date. Suppliers set their own deadlines and forms, so it helps to contact them before the handover date.

Rules on local property tax and local tax registration depend on the district and should be checked with the relevant district office.

Frequently asked questions