If you are thinking of buying property in Hungary you’ve come to the right place. Hungary is a country located in the heart of Europe. Its neighboring countries are Austria, Slovakia, Ukraine, Romania, Serbia, Croatia, and Slovenia.
With a population of over 10 million, the countries capital, Budapest, is the country’s economic, cultural, spiritual, and business center. Budapest is also known as the “Paris of Eastern Europe” is located on the banks of the famous Danube River that crosses it between two parts – Buda and Pest. About 25% of the country’s residents live in Budapest and its suburbs.
There are many reasons to consider purchasing a home in Hungary.
Can a foreigner buy property in Hungary?
Foreigners can buy property in Hungary. A non-EU citizen can either purchase property as a person or company in Hungary. Non-Hungarian citizens must gain the approval of the relevant Administrative Office to purchase property as a private person. According to regulations, most foreigners should receive a permit within 2-3 months.
Alternatively, foreign nationals can set up a company registered in Hungary in order to purchase a property. In this case, no permit is needed. This is a fairly swift and easy procedure (taking 1-2 days), and all expenses can be written off.
- Capital Gains: Net capital gains are taxed at a flat rate of 15% in Hungary.
- Inheritance: The inheritance of close relatives and the surviving spouse is exempt from inheritance duty.
- Residents: Resident individuals are taxed on their income at a flat rate of 15%.
- Rental Income: Net rental income is taxed at a flat rate of 15%. When computing for taxable income, income-generating expenses are deductible from the gross rent.
Buying Property in Hungary
Listen to the full episode on the UNPACK Podcast
- Property Prices in Hungary
- Pitfalls of buying property in Hungary
- Best towns to buy in Hungary
- Living in Turkey vs. Hungary
Reach out to Till Karpat
- Instagram: @tillkarpat
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