The acquisition of real estate property in Hungary as a non-Hungarian citizen requires a more complicated process compared to the acquisition procedure to be concluded by Hungarian citizens. Both the requirements regarding the future owner and the administrative burdens are higher, but that does not mean that it is impossible to procure a real estate.
This article aims to give a brief overview about the real estate property acquisition procedure of foreign nationals to be conducted in case a non-Hungarian citizen is willing to evict a real estate in Hungary either via purchase transaction, by bestowal or under any other legal title (except for inheritance).
Attention! Please note that this article does not under any circumstances constitute legal advice and does not provide complete information. The article was prepared based on the legal provisions in force at the time of writing. For comprehensive legal advice and more information regarding the topic, we advise to take part in a legal counseling and ask for the help of a lawyer!
Acquisitions of real estate property – How to get started?
As already mentioned, the acquisition of real estate property in Hungary without Hungarian citizenship is a more complicated process compared to the procedure laid down for Hungarian citizens. Gathering relevant information is always a good start of any procedure, and it is also the case with the acquisition of real estate property. As step zero it is essential to consider whether there is any obstacle (see later under requirements regarding the person of the owner), that might lead to the disconcertment of the acquisition.
In case of negative answer, the procedure shall start.
Beware of the essential requirements
According to the legal act LXXVIII of 1993 on certain rules regarding the lease of apartments and premises, as well as their alienation (hereinafter referred to as: Law) non-Hungarian natural persons and legal entities can only acquire real estates that are not qualified as land used for agricultural or forestry purposes. Regarding the acquisitions of flats and detached houses or any other real estates which do not belong to the excluded category, foreign nationals need to meet the requirements laid in the Law and in Government Decree 251/2014 (X.2.) (hereinafter referred to as Decree).
The main requirements regarding the person of the owner are the following:
- Lack of criminal record
The owner must not have a criminal record and as its evidence moral certificate must be submitted to the Government Office.
- Foreigner’s nationality
If on the basis of an international treaty or reciprocity, the state of the foreigner’s nationality does not grant Hungarian citizens or legal entities domiciled in Hungary at least the same treatment as to their own nationals then – apart from some exceptions – the Government Office will reject the submitted petition.
- Purpose of acquiring property
The aim of the acquisition should be to use the real estate either for providing lifestyle housing or for continuation of economic activity.
Administrative requirements:
- Government Office’s Consent
Foreign nationals can only acquire real estate property (except for the case of inheritance) with the consent given by the competent Government Office. The competence of the Government office is determined in accordance with the location of the real estate property. The consent can be denied on the basis of some exclusionary reasons described in the Law and in the Decree, otherwise it can be – and shall be – requested by filling out a form.
- Administrative fee
The procedural fee for the authorization process is HUF 50.000/real estate (in some circumstances HUF 10.000) that has to be paid by the Foreign National.
- Land Registry Entry
The procedure of the Land Registry Office is the same as for the Hungarian citizens, but can only get started after the Government Office’s consent has arrived.
- Legal assistance and legal countersignature
Just as in the case of the acquisition of real estate property by Hungarian nationals, legal assistance and legal countersignature is also essential for the foreign national’s acquisition as well. Consequently, the necessary documents should be prepared by a lawyer and legal countersignature is also a validity requirement.
Summary
In conclusion the acquisition of property of foreign nationals is a circumstantial procedure with many requirements to keep in mind and fulfill. Besides the special requirements regarding the person of the owner, the administrative process also requires caution, moreover the requirements of additional relevant legislation must also be met, thus it is recommended to seek for professional guidance and support during the whole process of the acquisition.
*Foreign national (natural person): a natural person who is not a national of a Member State of the European Union, a State party to the Agreeement on the European Economic Area or a State treated as such under international treaty.