Expenses When Purchasing

Typical costs when buying residential property in Hungary include:

1) Solicitor’s fee: 1,5 %; paid by the buyer upon signing the purchase contract. A lawyer’s participation is required in Hungary. All lawyers have the right to countersign your Purchase contract, but it is very advisable to use a real estate specialist. They are the ones who can make sure you are not becoming the victim of a
property scam, and can save you a significant amount of time at taking care of paperwork. Email or call me and I can introduce you to reliable, experienced and English-speaking specialists – even if you are not using my other services. Which you should :)

2) Buyer agent’s commission: 2 %, paid upon signing the purchase contract. Using the services of a buyer’s agent is optional. Check my “Fees & Discounts” section.

Prices quoted above do not include 25% VAT which you must also pay with a company invoice (your company can then reimburse VAT).

3) Property Acquisition Duty (also called “Stamp Duty”): 4%.

Good news! As of 2010, the general duty rate on the transfer of property will be reduced to 4% from 10%. If residential property is acquired, the duty rate will be 2% on up to HUF 4 million of the value of the property. The duty rate on amounts above HUF 4 million will be 4%.

Within the frameworks of its official procedure, the Land Registry Office (Földhivatal) notifies the relevant Duty Office (Illetékhivatal) to establish the duty of the transfer of the ownership right to be paid by the new owner.

The Duty Office will establish the amount and orders the payment of the property aquisition duty (illeték) to be paid within fifteen days following the receipt of the order. You can expect this to happen a few months (2 – 6 months lately) after your ownership is
registered by the Land Registry Office. The amount of the duty is based on the purchase price of the property.

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Other Posts about Buying Real Estate in Hungary:

• Location: Where to Live with a Family in Budapest
• Location: Where to Buy Investment Residential Property in Budapest
• Rental Yields in Budapest
• Expenses When Purchasing
• Buying for the Right Price

Back to Buying in Budapest »