Why Invest?

There may never be a better time to invest in the Hungary property market than now. We believe that this moment in time signifies a real buying opportunity for the investors to get in now before the next boom begins. The future looks bright for those investing in Hungary and the Budapest property market.

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Market Report

We forecast that taking under consideration the rapid maturing era of buy-to-let sector, that the value of property in Hungary will experience a further growing phase of around 15% to 20% more. Investors may find it a feasible time for investing in the property market as the current analysis denotes a great possibility in the future for a growing market.

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Economic Overview

The Hungarian Central Statistical Office reported a decrease in real wages in the first five months of 2007. Gross average income rose by 7%, while net average income increased by 1%. When adjusted for inflation, this corresponded to a 7% decline compared with real wages a year before. The drop was due mainly to the 2006 austerity package; however, state measures to combat the black economy may also have had an impact on pay developments.

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Visa/ Residency Issues

Hungary permits EU nationals to enter the country without the need to apply for a visa. Candidates from a range of non-EU countries may enter Hungary for up to 90 days, depending on their nationality, without making a visa application. However, for all other nationals from countries which do not receive this concession, applying for a visa is mandatory. In most cases, an airport transport visa is not required by Hungarian immigration authorities for those transferring through the international transit zone en route to another destination.

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Getting to Hungary

The best way to get to Hungary is flying directly from the United States or Western Europe into Budapest's Ferihegy airport. There are non-stop flights from New York to Budapest four days per week. It's also easy to fly to Budapest directly from most of the major European cities. London and Frankfurt are usually the best bets because they frequently are the least expensive ports of entry into Europe when flying from the U.S.

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Fees & Taxes

• Companies incorporated in Hungary are subject to corporate income tax on their worldwide profits. Foreign companies carrying out taxable activities in Hungary are subject to corporate income tax on their net profits derived from Hungarian sources. Hungary has a split-rate corporate income tax system. The standard rate of income tax is 18%.

• Residents of Hungary are taxed on worldwide income. Expatriates are taxed on worldwide income if they reside in Hungary for at least 183 days in a tax year. Non-residents are taxed on income from Hungarian sources only. Under the Hungarian individual income tax system, taxable income is generally taxed at a progressive rate of 20% to 48% based on income brackets.

• VAT is levied on the domestic sale on the importation of goods and services. VAT of 15% is levied on basic consumer goods, books, newspapers and transportation. A 20% rate applies to all other products and services.  

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Hungary

Basic Information

Hungary Overview

Hungary officially in English the Republic of Hungary is a landlocked country in the Carpathian Basin of Central Europe, bordered by Austria, Slovakia, Ukraine, Romania, Serbia, Croatia, and Slovenia. Its capital is Budapest. Hungary is a member of OECD, NATO, EU and a Schengen state. The official language is Hungarian also known as Magyar, part of the Finno-Ugric family, thus one of the three official languages of the European Union that is not of Indo-European origin.

Average Property Prices

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Buying Process

• Once a property is selected, you will need to hire a capable lawyer. A lawyer's contribution is necessary to prepare and counter-sign your purchase contract anyway.
• You need an approval first from the mayor of the Local Government then from the Administration Office of the county. If these two bureaucratic organizations declare that the purchase does not interfere with any municipal or other public interests, your purchase permit is approved.
• To apply for an approval you need following documents:
• Certificate of your origin (certified copy of your passport)
• One original copy of the signed and countersigned Purchase Contract
• One original copy of the Title of the property, issued less than 30 days ago
• Each of these two offices may take as long as 30 days to issue the permission. Because of the time factor, the seller must be informed of the process before the Purchase Agreement is signed.
• A meeting between the seller, buyer, and lawyer is then arranged, at which the contract is signed in the presence of the parties and a representative of the real estate office. Now the buyer is expected to hand over 10% of the agreed price as down payment.
• The most important step is when the buyer and seller sign the Closing Statement, which is a declaration that the purchase price has been paid in full and possession transferred. The buyer then takes possession. The final registration of ownership rights takes about six months.