An Introduction to properties for sale in Hungary

Hungary

Hungary became a full member of the EU in 2004 and the property market – particularly in the capital city, Budapest, where most foreign investors buy property for sale in Hungary – offers significant capital appreciation and looks set to do so for the foreseeable future.

Foreign investment in Budapest increased by 20% in 2004 and Irish buyers, more than anyone, have been snapping up apartments. A two-bed apartment will cost around 75,000 euros (£52,000).
Classic late 19th/early 20th century flats in the city have been rising in value by up to 35% per year for the past several years. Rental income is around 6% in a good location.

Buying old places in Budapest to renovate is proving a good investment for many people, adding about 20% value to the original price. New-build in and around Budapest is appreciating by about 15-20% annually.

Foreigners can buy as an individual or as a company. Buying as an individual is relatively simple, no Hungarian bank account is needed and there is less red tape. However, limited expenses can be deducted to reduce your Capital Gains Tax bill when you come to sell.

If you buy by forming a limited company, you will be entitled to a lower tax rate when you sell – 16% as opposed to 20% for private individuals.
However you choose to buy, one extremely important aspect is to ensure the authenticity of the title and deeds, so make sure your solicitor thoroughly checks their origins.