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To purchase a real estate is a common occurrence among our clients. To purchase a real estate in Hungary as a foreign citizen has several legal restrictions and difficulties, for example, you need an official approval from the competent government office. To understand the process, let us follow you through the first steps.
First, a foreign citizen by the legal definition is someone that is not a citizen of the European Union and the EC Treaty, or any state of the same legal state.
Thus, citizens of the EU, the EC Treaty (e.g. Norway, Liechtenstein), Switzerland, individuals with dual citizenship of which at least one is citizenship of an EU nation or Hungarian citizenship, do not need approval from the competent government office.
Every other foreign ciziten (e.g. citizens of any Asian, American, African or Arabic state), the approval of the competent government office is required.
The process starts with hiring an attorney, since to complete the transatcion you will need several countersigned documents.
The authorization process starts with filling a form and filing it to the goverment office according to the location of the property. The countersigned/notarized copy of the purchaser’s passport, driving license, or hungarian ID card has to be attached to the form, along with the land registry title deed of the property (not more than 21 days old) and the pruchase and sale contract or pre-contract agreement of the parties.
You also have to file a so called moral certificate and pay a procedural duty fee of 50.000,-HUF.
Now the claim to acquire title of real estate is under evaluation. In case of a positive judgement (if the claim does not harm municipality or public interest (e.g. the client is not banned from entry and residence, or no arrest warrant has been issued)), – the whole procedure can last over 60 days – you can proceed with the contract and payment of the purchase price.
The purchase and sale contract has to be countersigned by an attorney and properly delivered to the land registry office. It is strongly advised to conclude a bilingual contract to avoid misunderstandings.
To ensure everything goes smoothly and by the laws, contact us and we make sure you get a bilingual contract and the representation you need, for an affordable price.
Next time we discuss how establish a business company in Hungary.