Buying in your own name
Buying in your own name is the most common case. If several people buy together, their shares are recorded in the land register. How the shares are divided, and how this relates to any matrimonial property regime, should be decided deliberately.
Buying through a company
A property can also be acquired by a company, for example a Hungarian limited liability company (Kft.) or a foreign company. This can have legal, tax and accounting consequences that differ considerably from a private purchase, and the company will have ongoing obligations. Whether this route is an option in your case can only be assessed after reviewing your situation and in coordination with a tax adviser. General information on setting up a company is available under Company formation in Hungary.
What a purchase agreement typically covers
- the property and any items included in the sale, such as furniture and fittings
- the price, method of payment and deadlines
- handover of possession, keys and documents
- the seller’s statements on encumbrances and the condition of the property
- consequences of delay or withdrawal
- declarations for registration in the land register and any permits required
Financing
If the purchase is financed with a loan, the bank will usually have its own requirements, for example regarding the registration of a mortgage. These should be aligned with the draft agreement at an early stage.
Inheritance and succession planning
If you own property in Hungary, proceedings in Hungary may be needed on succession, even if you live in another country. Which succession law applies, and whether a choice of law or a will makes sense, depends among other things on your habitual residence, your citizenship and your family situation. Within the European Union, many of these questions are governed by the European Succession Regulation. Coordinating with your adviser in your home country is recommended. More about our work in inheritance matters: Real estate & inheritance law in Hungary.
Taxes and charges
Buying, owning and later letting or selling a property may involve taxes and charges, in Hungary and possibly in your home country. Whether and to what extent they apply depends on the individual case. We point out the legal aspects; for the tax assessment we recommend involving a tax adviser.
Next: Frequently asked questions about buying property at Lake Balaton