Under Hungarian law the following rights may be exercised in relation to real estate:
The owner of a building built on land owned by a different person, has the right to use the land during the life of the building.1
The right to use jointly owned real estates may be registered for the whole or a part of a jointly owned property, or for a condominium, defined in kind or expressed in area.2
A right to possess, use and collect income and other proceeds from a property owned by someone else however, the right-holder cannot sell the real property. Usufruct right can be granted for a definite term (ie up to 50 years if the right-holder is a legal entity or for the lifetime of a private individual beneficiary).3
This is similar to usufruct, but the individual can only use the property to meet his or her own needs and those of his or her relatives living in the same household, or the legal entity right-holder may only use and collect the benefits of the property in accordance with its purpose and activity.4
These are granted to enable an individual to use someone else's property for a specific purpose or require the owner to refrain from certain activities.
Easements include:
Based on a building right, the right-holder has the right to construct or use a building on or under the surface of a land, including the right to construct a building thereon and to use the land to that end. Building right may only be created for a definite period of time up to fifty years. The relevant agreement must be executed in writing and the building right takes effect upon registration in the Land Registry. Building right may also be created by the owner of a real estate property for his own benefit. The building right shall cease if not exercised by the right-holder for a period of 15 years.6
An important prohibition prescribed by law is that a natural person qualified as a consumer may not establish a building right on the real estate property he or she owns, and such right may not be acquired by a consumer, with the exception of inheritance. Any deviation from this provision is considered null and void.
Both institutions serve the same purpose: to provide protection for buyers of real property whose development has not yet been completed.
The legal institution of the condominium building right has been introduced in November 2025, designed specifically for newly constructed condominiums. Due to that right, even before the construction begins, the buyer gains a strong legal position regarding the future apartment or other unit as the buyer becomes entitled to acquire ownership of the given condominium unit if certain conditions are completed.
Until the construction is finished, the buyer can exercise rights similar to a mortgagee, to the extent the purchase price has been settled. This right has the same legal effect as a contractual prohibition of alienation and encumbrance effective from 6 months after the right has been registered in the land registry. It may itself be mortgaged or encumbered that must be registered in the land registry. The right ends once the buyer’s ownership is formally registered. It can be created for an indefinite period and can be registered from 1 March 2026.
Once the condominium is built, if its conditions are fulfilled, the condominium building right automatically becomes ownership.
Until the condominium building right can be registered, the land registry office will record the buyer’s right to the future building instead. This legal institution has been introduced in 2024. This right has the same legal effect as a contractual prohibition on alienation and encumbrance effective from six months after the right has been registered in the land registry. It can be created only for a definite period and will be deleted by the land registry office ex officio after five years, However, it may be registered repeatedly based on the parties' agreement. After 1 March 2026, this right will automatically convert to a condominium building right.
The mortgagee is entitled to sell or acquire the mortgaged property, or to enforce a right or a claim secured by the mortgage, in order to recover unpaid claims secured by the mortgage.8
The beneficiary of the call option is entitled to purchase the property at any time within the option period on payment of the agreed purchase price.9
The beneficiary of the put option is entitled to sell the property at any time within the option period for the agreed purchase price.10
The beneficiary of the repurchase option (ie the seller of a transaction) may purchase the property by way of a statement made to the purchaser, on a fixed price as agreed between the parties in advance.11
The beneficiary of the pre-emption right is entitled to purchase the property on the same terms and conditions as a purchase offer made by a third party.12
[1] Civil Code 5:145.§
[2] Government decree 179/2023 (V.15.) on the implementation of Act C of 2021 on the Land Registry 49.§ (1)
[3] Civil Code 5:146-147.§
[4] Civil Code 5:159.§
[5] Civil Code 5:160.§
[6] Civil Code 5:159/A.§; 5:159/B.§; 5:159/C.§
[7] Act CXXXIII of 2003, 11/A-11/C. §; Government decree 179/2023 (V.15.) on the implementation of Act C of 2021 on the Land Registry, 46. §,
[8] Civil Code 5:127.§
[9] Civil Code 6:225.§ (1)
[10] Civil Code 6:225.§ (2)
[11] Civil Code 6:224.§
[12] Civil Code 6:221.§ (1)
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As a general rule, companies registered in Hungary are able to acquire real property in Hungary, irrespective of the nationality of their owners (ie even if the owners of such companies are foreign citizens or EU citizens). Note that the acquisition of properties by foreign investors in certain sectors is subject to approval by the relevant ministry under applicable foreign direct investment (FDI) control laws in certain circumstances.
Non-EU citizens and legal entities may acquire real estate only with the prior consent of the relevant administrative office.1
There are certain restrictions and prohibitions on the acquisition of arable land, such as agricultural land or forests. In general, ownership of arable land may only be acquired by domestic natural persons and EU nationals who qualify as farmers. In addition to the above, the acquisition of arable land is also subject to strict rules and regulations. With a few exceptions, legal entities and non-EU citizens are prohibited from acquiring arable land.
[1] Government Decree 251/2014 (X. 2.) on the Acquisition by Foreigners of Real Estate Other Than Agricultural and Forestry Land
Last modified 13 Mar 2025
In certain cases, yes. The Hungarian State might have pre-emption right over (i) protected historical, cultural, archaeological sites or properties forming part of national memorials,1 (ii) world heritage buildings, (iii) protected national areas, 2 (iv) properties located in areas designated for the construction of highways, etc.3
Municipalities and third parties are also provided with pre-emption rights under specific national laws and regulations. With respect to arable land, the list of pre-emption right holders is more extensive. The Hungarian State, current users of the land, local neighbouring residents, local residents and various other persons have pre-emption rights over arable land.4
When one co-owner of a jointly owned property wishes to sell its ownership share, the other co-owners have pre-emption rights.5
In cases where the ownership of a building and that of the land on which it stands is separate, the owner of the land shall have pre-emption right in respect of the building, while the owner of the building shall have pre-emption right in respect of the land.6
The main sources of real estate law are:
[1] Act LXIV of 2001 on the protection of cultural heritage, 86.§ (1), (1a)
[2] Act LIII of 1996 on the protection of nature, 68.§ (6)
[3] Act CXXVIII of 2003, 6.§ (2)
[4] Arable Land Act (Act CXXII of 2013), 18.§ (1)
[5] Civil Code 5:81.§ (1)
[6] Civil Code 5:20.§
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The main sources of real estate law are:
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There are certain restrictions and prohibitions on the acquisition of arable land by foreigners and a general prohibition on the acquisition of arable land by legal entities, whether foreign or domestic.1
In addition, ministerial approval is required in order to transfer the ownership of historical building forming part of national wealth; to encumber historical building being part of state property, to exploit, or to appoint asset manager of state-owned historical building.2
Non-EU citizens and legal entities may acquire real estate only with the consent of the competent administrative office.3
Furthermore, the transfer of protected buildings (eg historical or cultural heritage buildings) as well as state and municipally owned buildings is also subject to certain restrictions.4
1Act CXXII of 2013, 9.§ (1), 10.§ (1) ; Gov.decree 251/2014
2Act LXIV of 2001, 44.§ (1)
3Government Decree 251/2014 on the Acquisition by Foreigners of Real Estate Other Than Agricultural and Forestry Land
4Act LXIV of 2001,, 86.§
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As a principle, to acquire ownership title to a real property, a written agreement – countersigned by a Hungarian attorney-at-law (with a special qualification registered at the Bar Association) or incorporated into notarial deed form – must be concluded, or some other legal title to the transfer of ownership is required. After a sale and purchase agreement is entered into, an application for the registration of the change of ownership is to be submitted to the land registry office. As of 16 January 2025, with the entry into force of the new Land Registry Act, the land registry procedure has become an electronic procedure. In practice, however, the electronic surfaces are not yet operational and therefore, documents must still to be submitted in paper form. It is still uncertain for the moment when exactly the electronic procedure will be implemented.
The transfer of ownership takes place when registration is completed by the land registry office which registration has constitutive effect.1
Subject to the full implementation of the electronic registration procedure, in certain cases, specified by law, the real estate authority makes its decision by using an automatic decision-making procedure. This means that the real estate authority can issue a decision within 24 hours without any substantive administration or human resources.2
Since registration of the transfer of ownership requires the consent of the seller (usually granted once final payment of the purchase price has been received), the buyer may seek a court order for consent, or the court may grant consent itself if it has been unlawfully withheld by the seller.
[1] Act C of 2021 on Real Estate Registration Act, 21.§, 42.§ (1)-(2); Civil Code 5:168.§ (1)-(2)
[2] Act C of 2021, 52. §, Government Decree 179/2023 (V. 15.) 135-137. §§
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All plots of land in Hungary are covered by the Hungarian land registry and are registered with land registry offices located in designated Hungarian cities. The land register comprises:
It also includes other information relating to the real estate, such as rights and legally relevant facts, details of encumbrances and easements, and, in the case of agricultural land, the cadastral net profitability.2 The land registry is an authentic public register, its records shall be construed as authentic proof of registered rights and recorded facts.3
Land registers are accessible to the public, notes can be taken, and official copies can be requested.4
Some of this information is also available on the internet to registered users. However, in some cases (e.g. in the case of documents and official resolutions held in the document archive) permission from the relevant rights holder is required to access and request copies.5
The transfer of title is recorded in the land register.
Transfer of ownership of real estate is only valid once it is registered in the land register. Registration can be based on:6
Letters of intent and preliminary sale agreements cannot be registered. However, if the property is sold with title retention (i.e. the final purchase agreement has been signed but the transfer of title is still subject to the payment of the full purchase price), then it shall be registered in the land register in the form of an entry showing the related right of the buyer, effectively preventing the seller from selling the property to a third party.7
Yes, it is available, although it is very rarely obtained by purchasers, largely due to the fact that the land register is an authentic public register and very reliable in Hungary.
Foreign insurance companies offer title insurance in Hungary.
[1] Act C of 2021 on Real Estate Registration, 10-13.§
[2] Government Decree 179/2023 (V. 15.), 20-21. §§
[3] Act C of 2021 on Real Estate Registration, 16.§ (1), Civil Code. 5:165-170.§
[4] Act C of 2021, 14. §
[5] Act C of 2021 on Real Estate Registration 78.§
[6] Act C of 2021 on Real Estate Registration 32.§, 35. (2)-(3)
[7] Civil Code 5:166.§, 6:216. §; Government Decree 179/2023 (V. 15.) 45. §
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Prior to the conclusion of the sale and purchase agreement, due diligence is normally carried out.
Afterwards, the sale and purchase agreement is entered into and submitted to the land registry office for registration in case of an asset deal. When the ownership of a real property changes due to a corporate legal transaction – such as a contribution in kind or a corporate division – the court of registry orders the transfer of ownership in its ruling. The court then initiates the registration of the new owner in the land registry directly with the land registry office who will then update the land registry based on the court ruling.The purchase price is usually paid once the seller has deposited his consent to the registration with an escrow agent and other conditions agreed by the parties have been met.
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When buying an asset, investors usually carry out technical, environmental and legal due diligence on title, building permits, leases and contracts relating to the property. When buying shares in a special purpose vehicle holding the real estate, corporate and financial due diligence is also carried out.
Due diligence is usually started after the signing of a letter of intent (heads of terms) and is completed before purchase.
An exclusivity period is in most cases agreed between the buyer and the seller.
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The consent of a spouse must be obtained if the sale is of jointly owned assets.1
Certain pre-emption rights also effectively mean that specific consents are required.
When one co-owner of a jointly owned property wishes to sell, the other co-owners have pre-emption rights.2
Also, non-EEA citizens or legal entities must also obtain specific permission from the competent authority before acquiring property in Hungary.3
In addition, ministerial approval is required in order to transfer the ownership of historical building forming part of national wealth; to encumber historical building being part of state property, to exploit, or to appoint asset manager of state-owned historical building.4
In some cases, the approval of the competent ministry is required to acquire ownership of a real property in some specific sectors defined by Hungarian FDI control law.
[1] Civil Code 4:45.§
[2] Civil Code 5:81.§ (1)
[3] Government Decree 251/2014 (X. 2.) on the Acquisition by Foreigners of Real Estate Other Than Agricultural and Forestry Land
[4] Act C of 2023, 126.§ (1)
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The deed of transfer must be made in writing.1 In order to register the transfer in the land register, the deed must be prepared by a notary or countersigned by an attorney-at-law or legal counsel (jogtanácsos) (with a special qualification registered with the Bar Association).2 Further specific requirements are set out in the Real Estate Registration Act.
The content of the contract is subject to negotiation. However, essential elements include the details of the parties, the purchase price, the description of the property (including the location and topographical lot number), details of payment, the date and method of handover, warranties, and the seller's consent to the registration of the buyer's title (this is, however, usually contained in a separate document).
1Civil Code, 6:215.§ (2)
2Act C of 2021 on Real Estate Registration, 32.§ (1)
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Under the Hungarian Civil Code, the seller warrants that he has title to the property, that the property is free from any third party rights, and that it is free from any defects or lack of essential qualities that might preclude the use of the property or have a negative impact on its value.1
Under Hungarian law, there are restrictions on the exclusion of statutory warranties. Where defects were disclosed to the buyer before or at the time the sale and purchase agreement was entered into then the buyer may not be able to make warranty claims in these areas.2
1Civil Code, 6:175-176.§
2Civil Code, 6:157.§
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If the acquisition of ownership or other relevant right is adversely affected by a right of a third party, the purchaser will ask the seller to eliminate adverse matter within a specified time, or to provide adequate guarantees. If the seller fails to comply with this time limit the purchaser is entitled to withdraw from the contract and to claim damages. If the seller has acted in good faith, it is only liable for the losses incurred by the purchaser in the conclusion of the contract.1
If the property being acquired is encumbered by a third party right (such as a mortgage), or its value is reduced by this adverse matter, the purchaser may ask the seller to eliminate the encumbrance within a specified time. If the seller fails to comply within the deadline prescribed, the purchaser may eliminate the encumbrance at the seller’s expense.
If the encumbrance cannot be eliminated or if it would require unreasonable expense to do so, the purchaser is entitled to withdraw from the contract and receive compensation or to have the consideration reduced commensurately in exchange for the assumption of the encumbrance by the purchaser.2
[1] Civil Code, 6:175.§ (1)
[2] Civil Code 6:176. § (3)
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The buyer should investigate the following:
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Yes. Under Hungarian environmental law, the owner and the occupier (if they are different persons) are both liable for any historical contamination. If the owner can prove beyond doubt that it did not cause the contamination and can identify the polluter, it may be able to escape liability.1
1Act LIII of 1995 on the General Rules of Environmental Protection, 102.§ (1)-(2)
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The general sources of law with respect to planning and zoning are Act C of 2023 on the Hungarian Architecture and Government Decree No. 280/2024 (IX. 30.) on the General Rules of Settlement and Building Requirements. These primary sources of zoning laws apply throughout the entire country.
Based on these primary sources, local municipalities (in Budapest the district municipalities) must adopt their local development plans, zoning maps, as well as local building and townscape codes applying to the given locality or municipality.
The local development plan and local building code describe the uses allowed in different areas of a city in a very detailed manner, specifying building heights, maximum floor-space ratios, minimum landscaped areas, etc. Any change to the zoning of property requires an amendment of the applicable local development plan.1
1Government decree 280/2024. on the General Rules of Settlement and Building Requirements, 1.§ (1)
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Yes. Under a development agreement the private developer normally undertakes to carry out certain public works, such as providing roads, public parking spaces, green areas etc. These would then be handed over to the public authority (normally the municipality) free of charge; while the local municipality undertakes to make its best effort to proceed with the requested modification of the zoning requirements.
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Yes. The Hungarian State and municipalities can expropriate real estate in certain exceptional circumstances for public purposes laid down by law (eg national defence, energy supply, development of traffic infrastructure, large scale greenfield developments creating a large number of workplaces), subject to providing complete, immediate and unconditional compensation to the owner.1
1 Civil Code 5:43.§, Act CXXIII of 2007 on expropriation, 1.§
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As a general rule, the transfer of real estate is exempt from VAT, unless the seller has opted to apply VAT at the rate of 27%. The seller may choose to apply VAT simultaneously to the sale of residential and non-residential real properties, or to the sale of non-residential real properties only. If the transfer is subject to VAT as consequence of the seller’s election above, then the reverse charging mechanism applies, ie the buyer is liable for VAT thus the VAT is not included in the invoice, rather it is paid by the buyer direct to the tax authorities.
The transfer of new buildings and building plots is always subject to VAT, and the seller is liable for VAT at the rate of 27% or 5% (ie no reverse charging applies). We note that the sale of new flats is subject to VAT at the rate of 5% provided that certain criteria are met. The VAT payable on the completion of a purchase of real estate may be reclaimed in accordance with the provisions of the VAT Act.
If the transfer takes the form of an asset deal, 4% of the market value is payable by the buyer as transfer tax. A reduced rate of 2% applies to the value above HUF 1 billion. Nevertheless, the transfer tax payable cannot exceed HUF200 million per real estate. The tax authority normally accepts the purchase price stated in the transfer agreement unless it is obviously below the market value.
If the buyer is:
then the real estate transfer tax is 2% or 3 % (providing the property is sold/leased within two years). A 2 % rate applies where the property is acquired by a Hungarian real estate fund.
The transfer tax rate is 2% if the property is purchased by a REIT (real estate investment company) or if it is a wholly owned special purpose vehicle.
In addition, a service fee is payable to the land registry office. Legal and notarial fees may also be incurred. These additional costs are usually paid by the buyer unless otherwise agreed (eg each party pays their own legal advisers' fees).
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In the case of a share purchase, the acquisition of 75% or more of the shares (including shares held by close relatives, related parties etc) in a company holding Hungarian real property is subject to transfer tax provided that the balance sheet value of the company's Hungarian real property (or properties) exceeds 75% of the company's total balance sheet value (subject to certain adjustments). In such cases the general transfer tax rate, ie 4%, applies. Nevertheless, (i) a reduced rate of 2% applies to the value above HUF1 billion, and the transfer tax payable cannot exceed HUF 200 million per real estate asset; (ii) if the acquirer is a REIT (real estate investment company), a reduced 2% rate applies (regardless of value).
If no adjustment applies as prescribed by the Duties Act, the tax base is the market value of the real property (or properties) owned by the acquired entity (or entities) in proportion to the shares held by the acquirer.1
The transfer of shares is exempt from VAT.2
Minor stamp duty and publication fees are payable by the buyer to the Court of Registration. Legal and notarial fees (usually to be paid as agreed by the parties) may also be incurred.
1Act XCIII of 1990 on duties, 18-19.§, 23/D.§
2Act CXVII of 2007 on VAT, 86.§ (1) f.)
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Are there any legal restrictions on foreign investors acquiring real estate?
As a general rule, companies registered in Hungary are able to acquire real property in Hungary, irrespective of the nationality of their owners (ie even if the owners of such companies are foreign citizens or EU citizens). Note that the acquisition of properties by foreign investors in certain sectors is subject to approval by the relevant ministry under applicable foreign direct investment (FDI) control laws in certain circumstances.
Non-EU citizens and legal entities may acquire real estate only with the prior consent of the relevant administrative office.1
There are certain restrictions and prohibitions on the acquisition of arable land, such as agricultural land or forests. In general, ownership of arable land may only be acquired by domestic natural persons and EU nationals who qualify as farmers. In addition to the above, the acquisition of arable land is also subject to strict rules and regulations. With a few exceptions, legal entities and non-EU citizens are prohibited from acquiring arable land.
[1] Government Decree 251/2014 (X. 2.) on the Acquisition by Foreigners of Real Estate Other Than Agricultural and Forestry Land
Last modified 13 Mar 2025