Specifics of obtaining a Hungary residence permit by purchasing real estate
Hungarian legislation allows foreign property buyers to obtain residency in the country through the Hungary Golden Visa program. The procedure involves four main steps: applicants obtain a Guest Investor Visa, travel to Hungary, purchase real estate, and then apply for a residence permit.
The Hungarian real estate investment route is available starting from January 2025. This was announced by Hungarian officials and published in the official gazette.
To qualify, an investor must purchase residential property valued at a minimum of €500,000. The signed purchase and sales agreement must stipulate that the investor cannot resell the property for at least 5 years.
The applicant is required to pay a stamp duty of 4% on properties valued under €2.6 million and 2% on the amount exceeding this value. Additionally, they must secure medical insurance and demonstrate financial sufficiency for travel and living expenses for their entire stay in Hungary.
Hungarian residency by property investment is initially granted for 10 years to the main applicant and their family members. This status may be extended for an additional 10 years, provided the investor maintains ownership of the property, and its value is still at least €500,000.
5 benefits of purchasing real estate in Hungary
1. Affordable prices by European standards. Compared to Western European countries, Hungary has relatively low property prices, offering excellent value for money.
For example, purchasing prices for apartments in Budapest are 40% lower than in Lisbon and 60% lower than in Barcelona.
2. High rental yields. The demand for rental properties is strong due to a booming tourism industry and economic development.
Currently, the average rental yield is almost 4%, both in Budapest and across the country.
3. Rising real estate market. Prices for Hungarian real estate have been growing steadily by at least 5% year-on-year since 2015.
In terms of the number of home sales, the first quarter of 2024 saw a 36% increase compared to a difficult previous year when the number of homes sold fell by 23%.
4. Growing tourism sector. Budapest is becoming an increasingly attractive destination in Europe. Other areas such as Lake Balaton are also popular, boosting the demand for vacation rentals. As a result, investors can capitalise on the thriving tourism sector.
5. Opportunity to obtain residency. Purchasing residential property for at least €500,000 can qualify a foreigner for a 10-year residence permit in Hungary, starting January 2025.
Hungarian property market trends
Property prices in Hungary have almost tripled since 2015, according to the Central Statistical Office of Hungary. In Q4 2023, new dwellings were 11.5% more expensive compared to the same period of 2022.
The overall housing market prices in 2023 were 5.8% higher than in the previous year.
The Budapest real estate market is expanding. Although there was a decline in the number of properties sold throughout Hungary in 2023, the decrease in Budapest was more moderate compared to other regions. Additionally, Budapest was the only city to see an increase in real estate transactions by the end of 2023.
In 2023, prices for new dwellings in Budapest increased by 10% compared to 2022. In districts III, XI, XIII, and XIV, where new housing was sold in large volumes, the cost per square metre was €3,900.
Meanwhile, prices for second-hand housing decreased by 8.5%. The average cost of housing on Budapest's secondary market was €2,256 per square metre by the end of 2023.
The capital experienced a decrease in prices across all types of buildings. In the Budapest agglomeration, the price per square metre of detached houses in 2023 was 2.6% lower than the previous year, while the price of dwellings in multi-dwelling houses was 5.3% higher.
The demand for small apartments within modern residential complexes is on the rise. New constructions are built considering energy efficiency standards, unlike properties on the secondary market. For owners, this translates to reduced monthly utility expenses in comparison to those in older buildings. The average utility bill for an 85 m2 apartment in Budapest ranges from €100 to 250 per month.
Property prices in select districts of Budapest
| District of Budapest | Average property price per m2 | Average 80 m2 apartment price |
| XI, Újbuda | €3,600 | €288,000 |
| VIII, Józsefváros | €3,400 | €272,500 |
| IX, Ferencváros | €2,900 | €232,000 |
| III, Óbuda-Békásmegyer | €3,400 | €272,000 |
| IV, Újpest | €2,600 | €204,000 |
The most popular regions for property purchase outside Budapest are the Northern Great Plain, with the city of Debrecen, and the Southern Great Plain, with the city of Szeged.
In 2023, the average price in county seats of the Northern Great Plain was €1,354 per m2 for second-hand properties and €1,564 per m2 for new real estate. In county seats of the Southern Great Plain, the average cost was €1,261 and €1,822 per m2, respectively.
Examples of real estate for Hungarian residency
Real estate purchasing process in Hungary
Property purchase and sales transactions in Hungary always involve lawyers.
Immigrant Invest’s lawyers and real estate specialists assist applicants seeking a residence permit through property purchase in Hungary. We help select an apartment or house, prepare and request necessary documents, conduct a property audit, and obtain purchase permission.
Immigrant Invest’s real estate experts identify residential properties that align with the investor’s preferences and residence permit qualifications.
The investor participates in property viewings either remotely or on-site when in Hungary.
Lawyers assist in executing a preliminary purchase and sales contract, after which the buyer must pay a down payment of 10% of the property’s price.
Based on this preliminary contract, the Hungarian Land Registry imposes a restriction on any further transactions involving the property by the current owner.
The lawyer conducts Due Diligence on the selected property and its owner to minimise transaction-related risks. The lawyer then obtains approval from Hungarian authorities for the real estate purchase. The document processing time ranges from 2 to 4 weeks.
Once purchase permission is granted, the main purchase and sales agreement is finalised, and the buyer pays the remaining balance to the seller. Within two days, the Land Registry issues a certificate of property ownership.
Taxes and fees when buying property in Hungary
For title transfers, a stamp duty of 4% applies to properties valued under HUF 1 billion, or approximately €2.6 million. Any amount exceeding this threshold is taxed at 2%, capped at a maximum tax of €534,380. This duty must be settled within three months of the property purchase.
Primary property purchases attract a VAT of 27%, typically included in the listed property price.
The fee for obtaining permission to purchase property varies from €170 to 200. Additionally, property buyers are responsible for several administrative fees:
- €22 for a property ownership certificate;
- €60 for imposing a veto on transactions involving the property;
- €30 for an extract from the land registry.
Fees for legal, realtor, and notary services associated with the transaction typically do not exceed 5% of the property's price.
Total additional expenses for purchasing a property usually do not surpass 10% of the property's price. For instance, when purchasing an apartment priced at €280,000, an investor can expect to spend around €308,000 for the transaction.
Requirements for Hungary residence permit applicants
Investor. Requirements for the main applicant to obtain a Hungary residence by real estate investment include the following:
- being over 18 years old;
- having no criminal records;
- not being under sanctions;
- possessing medical insurance and having no severe illnesses;
- having no violations of Hungarian and Schengen immigration laws.
Applicants from Russia, Belarus, Ukraine, and the US must hold a second passport to apply for a Hungary residence permit by real estate purchase. This applies not only to the investor, but also to all family members who want to obtain the status.
Family members. The investor can include the following members of their family in the application:
- spouse or registered partner;
- children under 18;
- parents of the main applicant or the spouse if they are fully supported by the investor and have a pension as their only income source.
Children aged between 18 and 26 can also apply for a residence permit if they are financially supported by their parents and are enrolled as students. However, they receive a 3-year permit which can be renewed once provided they still meet the requirements.
Steps to obtain a Hungary residence permit by property purchase
According to the experience of Immigrant Invest’s specialists, the whole process of obtaining residency through real estate purchase in Hungary takes at least 5 months. Below are the main stages investors must go through.
1. Undergo a Due Diligence check by certified anti-money laundering compliance officers. This check identifies potential denial risks early, allowing time to prepare additional documents or consider residency in another country if necessary.
2. Apply for and obtain a Guest Investor Visa. Investors who are able to travel to Hungary visa-free can skip this step. The rest submit documents to a Hungarian consulate in the applicant's country of residence. This 6-month visa enables the investor to enter Hungary, meet the investment requirement, and apply for residency.
3. Buy real estate and apply for a Golden Visa within 93 days of entering Hungary on a Guest Investor Visa. Submit the application to Hungary's immigration authority in person or online.
4. Collect residency cards. The application is processed within 21 working days. In case of approval, the investor schedules an appointment to the migration office to submit original documents and biometrics. The cards are then mailed to the investor’s designated address within 21 days.
Required documents for Hungarian residence permit application
The pack of documents required to apply for residency by real estate investment in Hungary includes the following:
- valid passport;
- two recent passport-sized photos;
- medical insurance;
- letter of intent to meet the investment condition;
- documents proving the legitimacy of income;
- bank statements;
- CV for each family member over 18;
- marriage certificate, if applicable;
- birth certificates, if applicable;
- completed government forms;
- confirmation of investment for obtaining residency;
- residential address registered in Hungary.
Life in Hungary for residence permit holders
A Hungary residence permit allows a foreigner to live in the country for as long as the status is valid.
To renew the residence permit, property owners must keep the real estate in their ownership. The property must still be valued at a minimum of €500,000. If the value decreases beyond this threshold or the property has been sold, the investor should buy a new property.
Renewal applications are submitted via the Hungarian Immigration Service website — Enter Hungary.
To qualify for permanent residency in Hungary, foreigners must live in the country with a residence permit for at least 3 years. During these three years, foreigners should not leave Hungary for more than 4 months consecutively and spend no more than 270 days in total outside Hungary.
Applicants also demonstrate that Hungary has an interest in granting them permanent residence.
The procedure is similar to obtaining residency: applicants confirm their address in Hungary, prove their income level or savings to live in the country, and buy medical insurance. Applications are submitted via the Enter Hungary website.
Permanent residence status is issued for life, but it will be revoked if a foreigner leaves Hungary for an extended period of time. Holders of a permanent residence permit in Hungary must notify the Immigration Office if they plan to leave Hungary for more than six months.
To become eligible for Hungarian citizenship by naturalisation, foreigners must continuously live in Hungary with a permanent residency status for at least 8 years.
Applicants for Hungarian citizenship must confirm their knowledge of the Hungarian language, history, and legislation and take an oath.
7 advantages of the Hungary residence permit by property investment
1. Visa-free travel across the Schengen. Hungary residence permit serves as a Schengen visa and allows staying in Schengen countries for up to 90 days out of 180.
2. Life in a safe country. Hungary ranks 14th in the Global Peace Index of the safest countries in 2024. Within the evaluation process, each country is assessed on 23 indicators, including the level of citizen protection and crime.
3. Maintaining freedom of movement worldwide. Hungary has three international airports, the largest being Ferenc Liszt Airport in Budapest. It takes 2.5 hours to get from Budapest to London and Paris, 5 hours to Dubai, and 10 hours to New York.
4. Business opportunities. A residence permit enables individuals to work in Hungary or start and operate a business. Hungary offers a 9% corporate tax rate which is the lowest in the EU and makes the country an attractive location for entrepreneurs.
5. Access to healthcare and education. Residence permit holders have access to Hungary’s public healthcare system, which ranks high and is more affordable than in other EU countries. Children of residence permit holders can access public schools or pursue higher education in Hungarian universities.
6. Relaxing at thermal springs and resorts that are located throughout the country. Gellért Thermal Baths in Budapest, the resort of Debrecen, and Balatonfüred near Lake Balaton are among the most popular with tourists and locals.
7. Active lifestyle all year round. Hungary has several national parks and nature reserves that offer opportunities for hiking and trekking. There are also a number of cycling routes, including some marked routes of EuroVelo 6, EuroVelo 11, and EuroVelo 13.
Hungary residence permit by real estate investment: key takeaways
- Hungary residence permit can be obtained by purchasing property in the country. The property must be residential and cost at least €500,000. This option is available starting January 1st, 2025.
- Foreigners who invest in property to obtain residence permits can include their spouse, minor children, and financially dependent parents in the application.
- In Hungary, there is a growing demand for real estate in modern residential complexes. Prices for such properties increase faster, while the maintenance costs are lower than for apartments in historical buildings.
- Additional expenses when purchasing property will be around 10%. These include administrative fees, taxes, realtor, legal, and notary services fees.
- Hungarian citizenship can be obtained after 11 years of continuous residency in the country, which includes 3 years of living in Hungary with a residence permit followed by 8 years of permanent residency.
Frequently Asked Questions
What is a White Card in Hungary?
A White Card is the name of a Hungary residence permit for digital nomads. This residence permit allows living in Hungary and working remotely for an employer registered outside the country. Foreigners with a monthly income of at least €3,000 qualify.
Hungary residence permit for digital nomads is granted for one year with the possibility of extension for another year. Another way to become a resident of Hungary is to obtain a Hungarian residence permit by property investment.
Who can buy property in Hungary?
Hungary allows purchasing property without restrictions to the country’s citizens and the Schengen and EU residents. Other foreigners wishing to buy property must obtain permission from the municipality and pay an administrative fee of €170—200.
Foreign nationals can obtain a Hungary residence permit by buying real estate for at least €500,000.
How to obtain Hungarian citizenship?
Hungarian citizenship can be obtained by descent, family reunification, or naturalisation. One cannot buy Hungarian citizenship or get it by investment.
To obtain a second passport in Hungary by naturalisation, a foreigner must continuously live in the country for 3 years with a qualifying residence permit, followed by 8 years of residing with a permanent residency status.
Foreigners must confirm their knowledge of the Hungarian language, history, and legislation of the country.
What are the property taxes in Hungary?
Property buyers in Hungary pay stamp duty for the title transfer at a rate of 2% to 4%. When purchasing real estate in new buildings, one pays a 27% value-added tax, which is usually included in the property price.
When selling property, owners pay a capital gains tax on the difference between the purchasing and the selling price. In this case, the tax rate is 15%.
How to get permanent residency in Hungary?
To become a permanent resident in Hungary, a foreign national has to live in the country for three years with a temporary residence permit. A Hungary residence permit can be obtained by purchasing property for at least €500,000 under the Hungarian real estate residency program known as the Hungary Golden Visa.
Can I get residency in Hungary if I buy a house?
Yes, investors can purchase property and get residence in Hungary under the Golden Visa program.
To qualify, one must purchase real estate for at least €500,000. The status is granted for 10 years and can be extended, provided that the investor keeps their property and its value does not drop below the threshold.
Can a foreigner buy property in Hungary?
According to Hungarian legislation, foreigners can purchase property in the country.
To buy real estate in Hungary, foreign nationals must obtain permission from the municipality and pay an administrative fee of €170—200. If purchasing property for €500,000 or more, investors can apply for a Hungary residence permit for 10 years.
How can I get residency in Hungary?
Hungary offers several types of residence permits, depending on the foreigner’s purpose of stay. Available options include a student visa, several kinds of employment residence permits varying by the applicants’ qualifications and type of employment, a family reunification permit, and a residence permit for investors, known as Hungary Golden Visa.
The Hungary Golden Visa is granted for 10 years to investors who donate to an educational institution, invest in real estate fund units, or purchase property in Hungary.
Can a Hungarian resident travel visa-free to Schengen countries?
Yes, Hungarian residents can travel visa-free to Schengen Area countries for short stays of up to 90 days within a 180-day period.
How much to invest in Hungary to get citizenship?
Hungary does not offer citizenship by investment. The path to obtaining a Hungarian passport typically takes 11 years, beginning with acquiring a residence permit and later obtaining permanent residency.
A residence permit in Hungary can be obtained through the Golden Visa program. The minimum investment required is €250,000. One of the main advantages of this residency route is that a foreign national is granted a 10-year residence permit.
Purchasing property in Hungary as a foreigner can also lead to residency. Starting 1st January 2025, investors can apply for a residence permit after purchasing a residential property valued at a minimum of €500,000.
