Buying a House in Hungary: Lessons Learned

The start of our search

When we moved to Hungary, buying a home was high on our list. We’d rented a few places in the past, but something about being here made us want to plant roots. Of course, I was able to move easily because I had Hungarian citizenship by descent, verified through my father – a story I wrote about in my previous post.

But even with citizenship, we had no idea where to begin. It took us about three months of searching before we found the right apartment. We viewed places all over – from leafy Buda hillsides to bustling Pest streets. At the time, we were still getting familiar with the city, so we cast a wide net before deciding where we wanted to live.

Buying a house in Hungary: a different kind of process

Hungary makes it fairly straightforward to buy property, but the process is quite different from what we were used to in Canada or the US. For one, real estate agents are common here, but not essential. The person who really matters is your lawyer.

Every property transaction in Hungary must be handled by a registered lawyer (ügyvéd), who drafts and files the purchase agreement and ensures the ownership transfer is legally binding. That lawyer submits everything to the Land Registry (Földhivatal) electronically – something only they can do. So while estate agents might show you listings, it’s your lawyer who makes the deal real.

Our first apartment: no agent needed

In our case, we didn’t even use an agent. We found our apartment online, contacted the seller directly, and arranged a viewing ourselves. A few weeks later, we sat down with a lawyer to sign the documents, and before we knew it, we were homeowners in Budapest.

If you have Hungarian citizenship (as I do), the process is fairly quick. But for non-EU citizens, there’s one extra step – a government approval process known as the property acquisition permit. This can add 30 to 60 days to the transaction while the authorities confirm that the property purchase poses no restrictions. It’s not difficult, just a bureaucratic delay – but one I was happy to avoid thanks to my citizenship.

How it works: step by step

If you’re planning to buy a property here, here’s a simple overview of what to expect:

1. Find the property – through online listings, an agent, or even word of mouth.
2. Negotiate the price – usually directly with the seller or their representative.
3. Hire a lawyer – your lawyer will handle the contract and file it with the Land Registry.
4. Pay the deposit / earnest money (foglaló) – commonly around 10%… usually paid to the seller (or placed in attorney escrow). If the buyer withdraws, they forfeit it; if the seller withdraws, they return double; if neither is at fault, it’s returned. (If agreed as előleg, it’s refundable.)
5. Sign the sale contract – once all details are agreed upon, the contract is notarised and submitted.
6. Apply for a permit (if needed) – non-EU citizens must wait for the acquisition permit.
7. Register ownership – once approved, your name appears on the official title deed (tulajdoni lap).

Sidebar: foglaló vs. előleg – what’s the difference?

This is one of those small Hungarian legal differences that’s really worth understanding before you sign.

• Foglaló (Earnest Money): This is the “serious money” that shows you’re committed. It’s usually around 10% of the purchase price and is paid when the preliminary contract is signed. If you back out without legal cause, you lose it. If the seller cancels, they must return double.
• Előleg (Prepayment): This is a simple advance payment. If the deal falls through for any reason, it’s refunded in full.

The difference might sound subtle, but it can mean thousands of euros. Make sure your lawyer clearly states which one applies in your contract – because Hungarian courts treat them very differently.

A few lessons learned along the way

• Bring patience and persistence. Bureaucracy here isn’t impossible, but it can move slowly and you’ll hear “come back next week” more than once.
• Choose your lawyer carefully. Ours was recommended by a friend, and he was invaluable. If you don’t speak Hungarian, make sure your lawyer is fluent in English and used to working with foreigners.
• Ask about utilities and ownership history. Our lawyer helped us verify unpaid bills and previous ownership, which saved us from nasty surprises later.
• Expect to pay taxes and fees. Buyers typically pay a 4% transfer tax, plus legal fees (usually around 1% of the sale price).

Note on the Real Estate Residence Permit (RERP)

While you can’t obtain Hungarian residency simply by purchasing a property, there is a smart workaround – the Real Estate Residence Permit (RERP), offered by Helpers Hungary.

This program allows you to set up a company for property management, which then purchases the property. Once the company owns the property, you can rent it out and generate steady, legal income. That income then becomes the basis for applying for a residence permit in Hungary.

The exact residence permit type will depend on several factors, such as your nationality, investment structure, and long-term plans – but the process is flexible and can be tailored to your situation. It’s an ideal option for those who want to invest in Hungarian real estate while also gaining the stability and benefits of residency.

If this route sounds appealing, Helpers Hungary can guide you through every step – from company setup and property purchase to the residence permit application itself – ensuring the process is smooth, compliant, and fully optimised for your goals.

Why having citizenship helps

For us, one of the biggest advantages was that my Hungarian citizenship made everything smoother. I didn’t have to wait for government approval, and the entire process took less than a month from offer to keys in hand.

For non-citizens, the wait is simply part of the system. It’s worth noting that foreigners can buy almost any kind of property in Hungary, except agricultural land. The extra permit process isn’t a reflection on you personally – it’s just how the law works.

If you’re eligible for Hungarian citizenship by descent, it’s absolutely worth exploring before buying. It not only simplifies property ownership but also opens doors for living, working, and travelling freely within the EU.

Would I do it again? Absolutely – and we did.

Buying our first home in Budapest wasn’t just a practical step – it was an emotional one. It gave us a sense of belonging and a base from which to explore this beautiful country. Sure, there were moments of confusion (and plenty of translation apps involved), but overall, it was a smooth and positive experience.

And truthfully, it changed something in me. Owning property here – in the country my family left, and I later returned to – made me feel more connected than ever. It grounded me in a way I didn’t expect, giving me not just a home, but a renewed sense of pride and permanence.

In fact, we loved it so much that we did it again. A few years later, we bought a countryside property with over 2,000 square metres of land. A peaceful retreat surrounded by vineyards and rolling hills in the Balaton Highlands. These days, we divide our time between the two: city life in Budapest and quiet weeks near the Lake. It’s the best of both worlds, and every time we unlock that gate in the countryside, I’m reminded how much Hungary feels like home.

If you’re thinking of buying property here, my advice is simple: find a good lawyer, take your time, and don’t be afraid to ask questions. Hungary’s property market can be both affordable and rewarding – especially if you go in prepared.

Learn more about life in Hungary

If you’d like to learn more about citizenship by descent, property laws, or what life here really looks like – from bureaucracy to bliss – check out my previous article or explore my ebook HOW TO HUNGARY: Budapest & Beyond. It’s filled with practical tips, expert information, and personal stories to help you settle in smoothly.

Want to find out if you’re eligible for Hungarian citizenship by ancestry?

👉 Take the free online test or contact the Helpers Citizenship Team to start your journey today!