Hungary is a well-known tourist destination country in the entire of Europe. Its capital city Budapest stands out as the leading stunning city. Hungary boasts breathtaking views which are worth exploring.
Are you thinking of moving to Hungary? Moving abroad can be very a bit overwhelming. However, following the right channel while moving makes work easier. It is advisable to rent a house or start in a hotel before moving to a permanent home.
About Housing in Hungary
Housing in Hungary has been a challenge for quite some time for many Hungarians. The cost of housing is constantly rising hence becoming burdensome. However, there are ways of finding decent housing in this community. Additionally, there are numerous plans underway to ensure that Hungary achieves fair and inclusive housing policies.
It is a sad reality that over 200 thousand families are at risk of being homeless. This is due to the scarcity of affordable housing in the country. With the wave of COVID-19, many families became homeless; unable to pay for their house expenses. The reason behind the increasing house costs is the country’s inflation.
What to do when Moving to get a Housing in Hungary
When moving to Hungary, it is advisable to rent or live in a hotel when you first step into Hungary. Bear in mind that it is possible to find your dream home in this country. The best people to contact on this matter are the real estate agents. There are also several advertisements in the local newspaper or through various websites online.
As an expat, find a lawyer to help in facilitating the process. For foreigners, one needs a property purchase license before one starts the process of purchasing a house. Steps of land purchase in Hungary include:
- Choosing the property through an agent or the locals
- Negotiating with the seller
- Do proper research on the land after which you draft an agreement
- Read, understand then sign the agreement after which you pay
- Turn the contract into the land registry
- Acquire ownership by getting registered
- Pay taxes and other fees
Renting in Hungary
The fastest way of getting a property for rent in Hungary is through an internet search. Renting a house in Hungary is relatively cheaper as compared to buying one. Expats can easily get both unfurnished and furnished houses with relatively cheap utility bills.
There is no specific formula for tenancy agreements in Hungary. Depending on the landlords, the agreement can be informal with very little formality. It is important to push for a formal or written agreement for security purposes. Verbal agreements cannot stand in court when there is a violation of tenants’ rights.
Renting a house requires a security deposit. Note that different landlords will ask for different amounts. There is no specific policy on how much a tenant should pay. This gives most tenants leeway to act depending on their negotiation ability. On top of the security deposit, a tenant pays upfront a month’s rent.
Where to find Affordable Housing in Hungary
Budapest is the city for you if you are looking for affordable housing in Hungary. It is the largest city in Hungary. Budapest is divided into two, Buda which has more residential houses, and Pest, which is the business district. Most people choose to move to Pest because it is a quiet residential place.
If you are a student looking for accommodation, it is advisable to rent shared houses. This will reduce the cost as you split the rent among the number of people renting the house. As such you end up saving and not using most of your money on rent.
Rental Housing Costs in Hungary
Rent varies from one city to another. It also depends on the type of house an expat is looking for. A three-bedroom apartment in the city center can go as high as €430.
The rental cost for the same apartment outside the city will be €330. At the same time, a one-bedroom house in the city center will be €240 while in the outskirts it will go for €179.
Hungarian Property tax
When you finally purchase a house in Hungary, you will receive your property license. The lawyer has to register the land with the land registry. Taxation of land is normally at 4% of the purchase price. However, the tax varies under different conditions such as the buyer’s age, the age of the property, and whether the land is vacant or with a structure.
Land purchase for foreigners
Every foreigner in Hungary requires a property license before proceeding to purchase land. However, Hungarian citizens, EU member states, or people purchasing land for Hungarian companies can purchase without this license. The license must come from the local government from where purchasing of the property happens.
Hungarian property license application fees
The requirement for getting the land license is HUF 50,000 (ca. EUR 125) for foreigners. For those with permanent residence permits and citizens, it will go for HUF 10,000 (ca. EUR 25). The procedure takes approximately 15-20 days and it will require the following;
- The title deed of the property
- Applicant’s criminal record
- Power of attorney for the lawyer in charge of the deal
- Applicants’ form of application
- Valid identity card or passport
- The preliminary purchase agreement for the property
- Proof of payment of the application fee
Mortgage for foreigners in Hungary
It is also possible to acquire a mortgage as a foreigner in Hungary. An expat can borrow as high as 70 percent of the property’s price. Many Hungarian banks are always willing to lend money to expats.
It is advisable to borrow from non-government organizations for better charges as compared to banks. Nevertheless, it is a choice for an expat to make on what works for them.