Residence permit in Hungary through the purchase of real estate

Author of the article:

Hope

Hungary real estate specialist

Date:  18.11.2024

Updated: 11/18/2024

Reading time: 11 min.

Views:  12

So, have you ever thought about changing your life and starting something completely new? If yes, then a residence permit in Hungary through the purchase of real estate could be your perfect option. This amazing country is located in the center of Europe, gives travelers access to many other countries and has a rich culture and history. And what real estate there is! From cozy apartments in the heart of Budapest to respectable houses on the shores of Lake Balaton, the choice is truly impressive.

Advantages of residence permit in Hungary

When I first thought about the possibility of getting a residence permit in Hungary, I was struck not only by the beauty of this country, but also by the many advantages it offers. Let's take a closer look at why Hungary is becoming an increasingly popular choice for foreigners looking for a new home.

Conveniently located in the center of Europe

Hungary is not just a country with a unique culture and history. It is located in the heart of Europe, which makes for incredible travel opportunities. In just a couple of hours by train, you can find yourself in cities like Vienna, Bratislava or Budapest. It is the perfect place for those who love to explore new horizons and discover the world.

Access to Schengen countries

By obtaining a residence permit in Hungary, you automatically have access to Schengen countries. This means that you can travel freely across 26 countries without the need to obtain additional visas. Imagine how you can easily travel to Paris or Rome for a weekend just by buying a train ticket!

Affordable education and medicine

If you have children or are planning to study, you will be pleased to know that Hungary offers high quality education. Universities here are internationally recognized and English language learning is becoming more and more common. In addition, the country's health care system is also of a high standard and foreigners can benefit from medical services on an equal footing with locals.

Favorable tax climate for foreigners

Another significant plus is Hungary's tax system. It offers favorable conditions for foreign investors, which makes the country attractive for business. Income tax here is one of the lowest in Europe, which allows you to save money and use it to develop your business or improve your quality of life.

Possibility of obtaining permanent residence and citizenship in the future

If you decide to stay in Hungary for a long time, a residence permit opens the door to permanent residence and even citizenship. This means that you will be able to enjoy all the rights and privileges of Hungarian citizenship, including the ability to work, study and travel throughout Europe.

Conditions for obtaining a residence permit through the purchase of real estate

Now let's take a look at what it takes to obtain a residence permit in Hungary through the purchase of real estate. This is a fairly simple process, but there are some important nuances to be aware of.

Requirements for buyers

In order to obtain a residence permit in Hungary through the purchase of real estate, you need to meet certain requirements. Here are the main ones:

1. Possession of a valid passport
   You will need to provide a valid passport for your country. This is the main document that proves your identity and citizenship.
2. Reaching the age of majority
   You must be at least 18 years old. This is an important condition, as only adults can carry out real estate transactions on their own.
3. No criminal record
   You will need to provide a criminal record clearance certificate. This requirement is to ensure the safety and legality of transactions and to protect the interests of the country.
4. Financial solvency
   You will need to prove your financial stability, which may include providing bank statements, income statements or other documents that prove your ability to maintain the property and cover the costs of living in Hungary.
5. Purpose of buying real estate
   It is important to specify the purpose of the real estate purchase, whether it is for residence, rent or as an investment. This will help you better navigate the process of obtaining a residence permit and the corresponding rights.

Compliance with these requirements will help you avoid unnecessary problems at the stage of paperwork and transactions. Prepare all the necessary paperwork in advance so that the process goes smoothly and without delays.

Minimum real estate value

In order to participate in the program of obtaining a residence permit through the purchase of real estate in Hungary, there is a minimum value that must be considered. Currently, this amount is €100,000 for residential properties in less popular regions and €150,000 for properties in more sought-after locations such as Budapest or Lake Balaton.

For example, in Budapest, you can find studio apartments in new residential complexes that are ideal for both permanent residence and renting. And if you dream of a quiet life away from the hustle and bustle of the city, in such picturesque places as Lake Balaton or historical villages, you can buy a house with a garden and a beautiful view for an amount not exceeding 150,000 euros.

Restrictions on the type of real estate

It is also worth paying attention to restrictions on the type of property. This mainly applies to residential properties, which must meet certain criteria. Here are the main points to pay attention to:

1. Residential properties
   Only residential properties are suitable for obtaining a residence permit in Hungary. These can be apartments, houses or townhouses that are intended for permanent residence. It is important that the object has the status of residential premises and meets all local standards.
2. Commercial real estate
   Commercial real estate may also be suitable for the residence permit program, but you need to be particularly careful here. For example, if you plan to purchase office or retail space, you will need to demonstrate a business plan or intention to conduct commercial activities. It is important to remember that not all types of commercial property may be recognized as eligible for a residence permit.
3. Real estate with restrictions
   Please note that some properties may have restrictions, such as being a protected historic building or being in an area with special conditions. This may affect the ability to resell or change the use of the property. Therefore, be sure to consult a lawyer before buying to avoid unpleasant surprises.
4. Conditions of Use
   It is also important to keep in mind that some apartment complexes may have internal rules regarding the use of the property. For example, some may limit the number of tenants or prohibit the use of the property for commercial purposes. Make sure you familiarize yourself with such rules before you buy.
5. Verification of documents and property rights
   Before buying, be sure to check all the documents for the property, including title, encumbrances, and whether the property is as advertised. This will help avoid legal problems in the future and ensure your safety as a buyer.

Thus, before making a choice in favor of a particular property, it is important to carefully study all aspects related to the type and status of the property. This will allow you to avoid legal complications and make the right choice to obtain a residence permit in Hungary.

Need for income verification

Finally, you will need to prove your financial capability. This is necessary to ensure your financial stability in the country. You may need proof of income or savings.

Step-by-step instructions for obtaining a residence permit through the purchase of real estate

Now that we have sorted out the basic conditions, let's move on to step-by-step instructions on how to get a residence permit in Hungary through the purchase of real estate.

Step 1: Selecting and buying a property

The first step is to choose the right property. The market here is diverse and offers many options. I, for example, fell in love with cozy apartments in the historical center of Budapest. But don't forget to explore other areas, such as the picturesque Lake Balaton, where you can find great options for living or vacationing.

Step 2: Formalizing the transaction and obtaining ownership rights

Once you have chosen an object, it is necessary to formalize the transaction. Here it is important to collect all the necessary documents and carry out a legal check. I recommend contacting professional lawyers who will help you avoid pitfalls and draw up the contract correctly.

JASMINE

from €135,000

Angyalföld, Budapest, Hungary

Metrodom Green

from €143,100

Ferencvaros, Budapest, Hungary

Metrodom River

from €168,732

Uybuda, Budapest, Hungary

Corvin Next

from €179,724

Józsefváros, Budapest, Hungary

Woodland

from €217,000

Ferencvaros, Budapest, Hungary

Marina City

from €235,766

Ferencvaros, Budapest, Hungary

Step 3: Submission of documents for residence permit

When the transaction is finalized, the next step is to apply for a residence permit. You will need to gather all the necessary documents, including the certificate of ownership, and submit them to the Hungarian immigration authorities. The process usually takes a few weeks, so be patient!

Step 4: Obtaining a residence permit and its extension

After your application is approved, you will receive a residence permit. It is valid for a certain period of time and you will need to follow the rules to extend it. If you decide to change your address or sell your property, be sure to familiarize yourself with the terms and conditions to avoid trouble.

Now that you know how to get a residence permit in Hungary through the purchase of real estate, let's discuss how the process relates to other European countries.

Comparison with other European countries

When it comes to obtaining a residence permit through the purchase of real estate, Hungary stands out from other European countries. Let's compare it with such popular destinations as Portugal, Spain and Greece.

Peculiarities of taxation for owners of real estate

Now let's take a look at the taxation situation for property owners in Hungary. This is an important aspect to consider when making a purchase decision.

Taxes on the purchase of real estate

When you buy a property you will need to pay property transfer tax, which is 4% of the value of the property. This is standard practice and it is important to factor this expense into your budget.

Property tax and its amounts

After purchasing a property, you will be liable to pay property tax. In Hungary it varies depending on the location and type of property, but on average it ranges from 0.1% to 2% of the assessed value. These are pretty reasonable figures compared to other countries.

Taxation when renting out real estate

If you plan to rent out your property, you should be aware of the taxation of rental income. In Hungary, the tax rate on rental income is 15%, but you can deduct certain expenses, which makes the tax burden more acceptable.

Double taxation and tax benefits for residents

It is also worth noting that Hungary has double taxation agreements with many countries. This means that you can avoid paying taxes twice on the same income. In addition, residents can take advantage of tax incentives, which makes life here even more attractive.

Legal and financial aspects

Now let's discuss some of the legal and financial aspects to consider when buying real estate in Hungary.

Conclusion

So, residence permit in Hungary through the purchase of real estate is a great opportunity for those who dream of a new life in Europe. This country offers many advantages, including affordable property prices, convenient location and favorable tax climate. If you are ready to take this step, do not forget to contact reliable lawyers and agents who will help you with all the paperwork and make the process as comfortable as possible.

If you still have questions or would like advice, do not hesitate to contact us. We will be happy to help you every step of the way on your way to a new life in Hungary.