Contract
The contract (whether a purchase and sale, gift, or exchange agreement) governs all matters related to the transfer of real estate: the parties’ details, the property’s details, the amount and payment schedule of the purchase price, the date of transfer of possession of the property, and so on. The contract is drawn up to facilitate the registration of the transferee’s title.

Registration time

The process of registering ownership in the real estate registry takes anywhere from one to several months. Registration of the purchaser’s ownership rights is possible only if the property owner has given written consent to transfer ownership to the purchaser. This is done either in the text of the contract itself or in a separate document, known as a «“permission”» for registration. If this document is missing, the buyer’s application for registration of ownership will be denied. 

Purchase Permit for Foreign Citizens

A foreign citizen is entitled to purchase Hungarian real estate provided they have a permit from the county administration; a purchase agreement alone is not sufficient. Currently, permits are issued to virtually everyone without exception; compliance with the formal requirements is sufficient: a purchase agreement, payment of a fee of 65,000 HUF, and submission of a notarized copy of the foreign passport. By law, the processing time for the permit is 45 days; in practice, it can take up to two months. достигать 2-х месяцев.

State fee

The buyer of real estate pays a one-time fee to the state budget equal to 4% of the property’s value as stated in the contract. The fee is paid in accordance with a decision issued by the tax office, which is sent directly to the buyer or their attorney, typically several months after the buyer’s ownership rights have been registered in the real estate registry.

Income Tax

Income from the sale of real estate is taxed at a rate of 15% of the difference between the purchase price and the sale price of the property. The tax amount is reduced in proportion to the length of time the property has been owned. If the property is sold after being owned for 5 years, the income from the sale is not subject to tax. 

Title Deed

The document that officially certifies property details (address, area, category, ownership information, encumbrances, etc.) is known as the property certificate. Any person can obtain a property certificate at any regional branch of the real estate registry; all that is required is to know the property’s address and cadastral number and pay the fee. After the contract is signed but before it is executed, the property title deed indicates that the real estate sale and purchase procedure has begun, which prevents abuses such as the resale of the property or the registration of a mortgage or other encumbrances on the property.

Mortgage Registration

To secure obligations arising from civil law contracts, such as a loan agreement, the parties must enter into a mortgage agreement in addition to the loan agreement. Based on these two agreements, a mortgage right in favor of the lender lender is registered in the real estate registry. In the event of a breach of contractual obligations, the lender is entitled to exercise the mortgage right and seek, through the courts, the auction sale of the real estate, followed by the recovery of the amount owed to the lender from the proceeds of the auction sale.

Power of Attorney

If the buyer or seller is unable to be present in person at the signing of the contract, they may authorize another person to sign the contract on their behalf; this authorization must be certified by a lawyer or notary. If the signing takes place outside Hungary, it must be certified by the consular section of the Embassy of the Republic of Hungary.