The Buying Procedure
Regarding permit to buy in Hungary, being EU-citizens there is no problem or permit necessary to buy in Hungary. You can buy by contract what is made by a lawyer. You sign, (ex)owner signs and the lawyer will take of the rest. You can start the buying procedure in Hungary and even from home.
Buying as a foreigner is no problem as long as you have a nationality for one of the EU-countries. Also if you are citizen in the surrounding countries, or countries where Hungary has (business)connections with it is very well possible. This second group are countries like UK, Swiss, Russia, Ukraine, Norway, etc. etc., but also USA, Canada, New Sealand, Australia, Israel etc. For citizens from Arabic countries and citizens coming from India, China, Syria,Libia, Africa etc. it can even be more complicated, but still possible.
BE AWARE., after Brexit also UK citiszens need a permit to buy.
Starting the procedure.
Once you have happily decided to buy a suitable property through us, a straightforward series of events will take place in order to make you the legal owner:
* We will agree on a mode of payment - bank transfer, cash, etc., and also decide who gets paid and when.
* A date is set for the vendor to vacate the property.
* A 20% deposit of the property's 'all-in' price must be paid to our solicitor/lawyer's bank account. This ensures that the property is reserved just for you.
* The vendor signs a, what we will call, precontract - a prior to purchase agreement, meaning we reserve the property for you.
* You have 30 days in which to pay the remainder of the 'all-in' price. Failure to pay within 30 days means that you forfeit your deposit and any right to the property.
* All conditions of the deposit will be explained to both the buyer and the vendor. The vendor risks having to pay back double the deposit if the property is sold to a third party. Likewise, you have your obligation to pay within time.
If you are buying a tanya (former farm in the outlands), you can buy up to 10.000 m2, but you need a permission of the authorities of the village. They have a rule that if a Hungarian wants to buy, he has the first buying rights. This will (almost) never happen, but good to know. The procedure can take up to 60 days, but after that there is another 60 days in which a government committee (mostly land registry) is going to look whether all procedures are okay and a foreigner can buy, so 60 + 60 + some days for posting + time to pass all procedures etc. will turn out to be about 7, maybe up to 9 month before you know whether you can buy the property. Take care. This is not buying bigger (over 10.000 m2) lands out of the villages. That is not possible for foreigners at all.
Finalizing the procedure.
The final contract with your signature and final payment, unless it was already paid, can be done in Hungary in the lawyer's presence. And nothing gets signed without prior payment.
On documents you only need to have your passport (ord ID-card) with you. All outstanding payments must be received on this day.
If everything goes smoothly you now get the house keys.
If it is impossible for you to be present you must properly authorize us to sign on your behalf. In cases like you are a non-EU citizen, it is feasible to sign a contract at an embassy; however, they will only do this grudgingly, and they will charge you for ir.
Nowadays it can even more easy. For signing the purchase contract, it is easier (and more fun) to sign at the lawyer's office in Hungary. As that is, unfortunately, not always possible, Hungarian Houses offers the possibility to sign the contract remotely. This of course within all legal requirements, but more easy for you. So you can sign at your home as if you were in Hungary.
In Hungary cash money is a very common way of paying, so it is not strange to pay a house in cash. Of course you can transfer the money to the lawyers account so he can take care of paying to the seller. You must then pay the bank costs.
After signing the contract we can help you put utilities (water and electricity) in your name, open a bank-account, and, if necessary, arrange your insurance with an insurance broker.
Please note that if the vendor has not satisfactorily vacated the house and removed his possessions as agreed, up to 500 Euro can be withheld until the vendor complies.
Be patient. All tough the property is 100% yours, land registries can be slow in registering new owners (several months or more depending on the region). When it is ready, your registered ownership will come to us and be in our safe-keeping until you decide to pick it up.
All property sales attract taxation, which is based on the value of the property. This is specifically not included in our prices since you will pay it sometime after finalisation of the contract, directly to the Hungarian tax office.
You can work out below what your stamp duty/property tax is going to be:
4% for a house value.
4% for an empty building ground/plot.
4% for a barn, secondary/side building, commercial property.
The bill for your property tax can take up to 6 - 12 months to arrive after you have signed the purchase contract.
Non-EU citizens are advised to check with their authorities to verify their status in Hungary prior to any visit / purchase.
If you don’t have an EU-citizenship, we need to ask a permission to the local (Province) authorities. Will cost some extra time and money. You can come to Hungary, select the house you want to buy, sign the contract and we start the procedure. In the contract will be written the contract is only valid if the permission is granted but keep in mind there is no 100% guarantee on this.
If you want to come to Hungary without buying a house, you might be able to buy you into Hungary. If you are interested, read here.
If you want to know more on Hungarian residency, read here.
Buying with the help of a company.
If you are not an EU-citizen or one of the countries Hungary has a (business) relation it can help to buy thru a company. A possibility is there for you to make your own company and have the company buy the property. You will be the owner of the company, so the owner of the property.
There are hardly any limits to make a company (called a KFT). Anyone with no criminal record and presenting correct identification can establish a company. There is no limitation on citizenship and there is no requirement for a local partner as in many countries. You will be the sole owner.
Establishing a company can be handled by a lawyer and can be ready in 2-5 days. The company will need a capital of 10.000 Euros and this money can be used to buy a property as the property will be part of the assets of the company. For costs you will need to calculate around 1.000 Euro (+ VAT) for the lawyer and registration costs and yearly around Euro 500,= for costs on the registered seat, a bank account and an accountant. All things our agent can assist with.
Please be aware!!. Establishing a company, or buying a house will not automatically give you a permanent visa or permanent staying license for Hungary.
Procedures can change anytime and when buyer and seller agree there are lots of possiblities to change the standard regulations. So we can extend the 30 days paying period, paying to the lawyers account or to the sellers account, signing in Hungary, or at home.... etc. Let us know and we help trying a solution.