A Plus Property Hungary - How toBuy a Property in Hungary

The demand for apartments in Hungary has risen in recent years. There is now a

huge demand for properties in Budapest, as well as in other cities in the country.

These include Vesprem, Gyor, Szekesfehervar, and Debrecen. It is a trend that is

also present in rural areas, but is especially noticeable in Budapest.

In order to purchase an apartment in Budapest, a foreigner needs to obtain a permit

from the Administrative Office. This process can take up to three months. Once you

receive the permit, you can go ahead with the purchase. You must provide proof of

your immigration license, your citizenship document, your value certificate, and a

copy of the contract for the acquisition of the property.

To acquire a property in Hungary, the buyer must have lived in the country for at

least five years. They must submit a bank account contract, an ownership sheet, a

passport or other foreign identification documents, and a copy of the purchase

contract. Foreign buyers should also supply an original bank certificate verifying the

purchase price and a valid tax certificate.

Since 1972, Hungary has adopted a uniform A+ real estate budapest registry system. The law on

the real estate registry lists rights that can be indicated in the registry.

Mortgages are established under the law. A mortgage can be independent or

contingent. Typically, a mortgage can be established either on a particular contract

or on an obligation by a contract. When establishing a mortgage, the party may

choose the governing law of the loan contract. The obligor must pay interest on the

loan. Interest equals the base interest of the National Bank of Hungary on the last

day of the preceding six calendar months. If the obligor is unable to pay the interest,

the other party is liable to pay interest.

The Hungarian law recognizes several types of mortgages. One type is a limited

security lien. Another is a chattel mortgage. Both mortgages must be recorded in

the inventory of the National Chamber of Notaries Public.

Unless otherwise stipulated by law, the purchase of a land section for agriculture

purposes is restricted to local residents. The Agricultural Land Act imposes

restrictions on foreigners, including limits on the size of the land they may purchase.

The act also prohibits the ownership of land in protected nature areas.

The buyer will have to pay a procedural duty of 8- 40 euros. This is payable upon

transfer of the property. However, the procedure can be expedited by hiring a

lawyer. The attorney will be able to certify the validity of the instrument in court. He

or she will then be able to give a specimen of the signature to the Court of Registry.

Before completing the transaction, you will have to entrust your company's books to

an accountant. After the transfer of possession is completed, your new company is

able to issue invoices and issue an occupation license. All the information regarding

the company is then published in the formal public record.