Foreign Investor Rules: What You Need to Know Before Buying Property in Budapest
If you’re planning to buy property in Budapest as a foreign investor, it’s important to know the rules ahead of time. Whether you’re from the EU or outside it, here’s everything you need to know—based on current policies and real data.
1. Who Can Buy Property in Hungary?
- EU/EEA citizens
You can purchase property freely in Hungary, including in Budapest. No special permits or approval are necessary. - Non-EU/EEA (Third-Country) Citizens
If you’re from outside the EU/EEA, you must apply for a purchase permit from the local government before the sale can be finalized.
2. Purchase Permit: What It Involves
For non-EU buyers, here’s what the process looks like:
- Required Documents & Fees
- Application filed by a Hungarian lawyer
- Certified ID (passport), property preliminary contract, recent title deed, criminal record certificate
- Fee: around €130 (HUF 50,000)
- Timeline
- The decision typically takes 15–30 days. Some sources indicate processing may take up to 45 days.
- Restricted Areas
- Some areas—especially agricultural land or certain monuments—may prohibit foreign ownership.
- In small towns or villages, municipalities may now block sales to non-residents—effective from July 1, 2025.
3. Investment Programs Offering Residency
Hungary also offers residency programs tied to investment:
- Guest Investor Program (GIP) – launched July 1, 2024:
- Option to invest €250,000 in a government-approved real estate fund
- Or invest €500,000 directly in residential property
- Or donate €1 million to educational or cultural institutions
- Qualifies for a 10-year residence permit, renewable once
- Important Update – As of late 2024, Hungary removed the real estate purchase option (€500,000) from the program starting January 1, 2025. Only the fund investment and donation routes remain.
4. Market Snapshot: Property Prices & Foreign Buyers
- Rising Demand & Prices
Budapest’s property values continued to climb strongly in early 2025. Transaction volume jumped 36% year-over-year in Jan–Feb.- Average housing price: HUF 60.4 million (~€185,000)
- New-builds: €2,500–€3,500/m²; central areas: up to €5,500/m²
- Foreign Buyer Trends
In 2024, roughly 3,647 foreign purchase applications were submitted, with 3,485 approved.- Foreign buyers made up 2.8% of all property sales.
- Top nationalities: Chinese (1,106 transactions, +71% YoY), Vietnamese, then others.
- Popular districts: District VII (15%), then VI, VIII, and XIII (~12–13% each).
- Hotspot Districts & Prices
- District VII: vibrant, high-demand investor zone.
- Districts VI, VIII, XIII: also popular among foreigners.
5. Step-by-Step Summary for Foreign Investors
| Step | Action |
|---|---|
| 1. Search | Work with a local agent or lawyer to find your ideal property in Budapest. |
| 2. Permit (if non-EU/EEA) | Lawyer files purchase permit application (~€130, 1–2 months). |
| 3. Be aware of locality | Note that some villages can now refuse foreign purchases. |
| 4. Optional: Apply for GIP | If you prefer residency, consider investing in a real estate fund. |
| 5. Closing Costs | Budget for ~10% extra: 4% transfer tax, legal fees, registry fees. |
Final Thoughts
To buy property in Budapest as a foreign investor, EU/EEA citizens enjoy full freedom. Non-EU buyers must navigate permit requirements and stay mindful of evolving rules—especially municipal-level restrictions going into effect mid-2025. The Guest Investor Program offers a unique path to residency, but the direct purchase route has been removed.
With demand and prices still rising—and foreign interest concentrated in vibrant central districts—claiming your piece of Budapest property is both an exciting and worthwhile process when done right.