Property Acquisition by Foreigners in Hungary – When Is a Permit Required and How Does the Process Work?

Hungary remains an attractive destination for foreign buyers, investors, and developers. However, non-EU citizens are generally required to obtain a government permit before acquiring ownership of any non-agricultural real estate (such as residential property, offices, commercial units, garages, etc.). Government Decree 251/2014 (X. 2.) sets out in detail the circumstances in which a permit is required and the conditions under which it may be granted.

This article provides a clear, practical overview of the current rules for foreign nationals seeking to purchase property in Hungary.

Who Does Not Need a Permit?

The following persons may acquire non-agricultural real estate in Hungary without a government permit:

• Citizens of EU Member States, as well as
  – EU-based legal entities and
  – legal entities without legal personality
  (e.g. citizens of Germany, Italy, France, Spain, Austria, etc.)
• Citizens of EEA countries
  (Norway, Liechtenstein, Iceland), and their legal entities
• Citizens of Switzerland
  – based on the Agreement on the Free Movement of Persons
• Dual citizens, if one of their citizenships is Hungarian or EU
• Acquisition by inheritance
• Recognised refugees and beneficiaries of subsidiary protection

If the buyer belongs to any of the above categories, no permit is required, and the property transfer is completed through an attorney-countersigned sale and purchase agreement and the standard land registry procedure.

When Is a Permit Required?

A permit is required in all other cases.
This applies when the buyer:

• is not an EU / EEA / Swiss citizen, and
• does not fall under any of the exempted categories.

The permit is required even if the foreign national:

• is a permanent resident or immigrant
• holds a valid residence permit
• has lived in Hungary for many years
• already owns other Hungarian properties

Immigration status alone does not provide exemption.

What does “property acquisition” mean? The scope of the Decree covers the acquisition of real estate through sale and purchase, gift (donation), or exchange transactions.

Which Authority Decides the Application?

The permit application is decided by the:

• County Government Office (Vármegyei Kormányhivatal), or
• in Budapest: Budapest Metropolitan Government Office

Official processing time: 45 days.

The application must be submitted on the official form contained in Annex 1 of Government Decree 251/2014.

When Will the Permit Be Granted? – The Four Key Conditions

A property acquisition permit is granted if all of the following are met:

1. The acquisition does not harm public interest, and no public order or public security concerns exist
2. The acquisition does not violate municipal interests
   (the local municipality may comment within 30 days)
3. The applicant’s identity is fully verified
4. The genuine intention to transfer ownership is proven
   (via a contract, preliminary agreement, or formal declaration)

Important:
A simple statement by the applicant is not considered sufficient evidence. Supporting documents must be provided.

Grounds for Refusal – Public Interest Concerns

A permit may be refused if the foreign buyer:

• is subject to expulsion, a travel ban, or a residence ban,
• is the subject of an arrest warrant,
• has a criminal record,
• or, in case of a legal entity, the Hungarian branch office is subject to:
  • suspended or cancelled tax number
  • liquidation or compulsory strike-off proceedings
  • restrictions imposed under criminal law

Municipal Objection

The permit may be denied if the municipality states that the acquisition would harm:

• local development or zoning interests
• the performance of local public duties
• other protected municipal interests

The municipality must respond within 30 days.

Special Rule: Property Acquisition for Business Activity

If the foreign buyer:

• is a sole entrepreneur, or
• a member of a sole-owned company,

and acquires the property for business purposes, they must prove that:

• the purchase is genuinely necessary for their economic activity
• they will reside in Hungary on a habitual basis, and
• the activity will be effectively carried out

If the permit is granted, the Government Office will require that:

• the buyer starts residing in Hungary and commences the activity within 90 days

If this requirement is not met, the property must be sold within one year.

The Principle of Reciprocity

The Government Office may refuse the application if the buyer’s country does not provide equal treatment to Hungarian citizens in similar cases.

Reciprocity does not apply, and thus may not be invoked, when:

• the acquisition is intended to terminate co-ownership, or
• the foreign national has lived in Hungary for at least 5 years,
  and has worked here for at least 3 years.

Buying Property at Auction – Special Rules

Foreign buyers participating in a judicial auction must first obtain an:

Preliminary Permit

This document:

• does not relate to a specific property,
• is valid for 1 year,
• and allows participation in any auction within the competent authority’s territory.

After the auction, the Government Office will endorse the preliminary permit by adding the exact property details based on the auction minutes.
This endorsement is required for land registry registration.

How the Herdon Law Firm Can Assist Foreign Buyers

The Herdon Ügyvédi Iroda provides comprehensive, multilingual, end-to-end legal assistance for foreign nationals acquiring property in Hungary, including the full permit procedure.

Our key services:

1. Multilingual legal assistance
   – professional support in English for international clients.
2. Representation in the full permit procedure
   – preparing and submitting applications, e-paper filing, managing requests for clarification.
3. Arrangement of translations and certified documents
   – obtaining and preparing official translations, legalised copies, and supporting documents.
4. Drafting of sale and purchase agreements or other transfer deeds
   – fully compliant, bilingual or multilingual contracts suitable for land registry submission.
5. Preparation of all ancillary documents
   – powers of attorney, declarations, business documentation, use- and operation-related documents.
6. Handling the full land registry process
   – from receiving the permit to registering the buyer’s ownership.
7. Assistance with bank financing and communication with banks
   – supporting mortgage procedures and ensuring compliance with banking requirements.
8. Complex legal advisory services for foreign investors
   – risk assessment, eligibility review, and tailored guidance for special cases.

Conclusion

Property acquisition by foreign citizens in Hungary often requires a government permit, especially for non-EU nationals.
The process involves multiple authorities, strict documentation requirements, and specific legal conditions.

The Herdon Law Firm ensures a smooth, legally compliant, and efficient end-to-end procedure—from preparing the sale and purchase agreement to obtaining the permit and registering ownership.