Hungary

Hungary Map

PROPERTIES & RESIDENCE

Pros for obtaining a property in Hungary
Hungary has strategic location in the heart of Europe and it's climate can be called south-central (great weather from March to mid-October). Wizzair - the Hungarian airline - offers connections to hundreds of destinations across Europe every day; including over 30 flights to London daily. Real estate prices are fairly moderate 1.5-3k EUR/m2 and the growth yield is around a reasonable 6%. Tourism over the 25 years - increased from 3 to 9 million visitors per year. The economy is stable; national debt is dropping while the growth is around 5% annually. Unemployment rate is very low - 4.5%. Budapest is a great expat center - EU citizens, Russia, China, and other countries. Hungarian passport offers visa free travel to all Schengen countries, US, New Zealand, UK and Australia and Canada. Healthcare and educations systems are quite good.

Residence permits on the grounds of owning real estate
Personal investment in property: at least 250,000 EUR investment is required. Incorporating a company can keep the costs lower, but it is not a solution for a single property ownership.

Residence permits on the grounds of company formation
Setting up a company to own the property and generating revenues on leased properties is possible; the minimum investment threshold is 180,000 EUR. The company can be involved in other areas of business as well apart from property management. Rental income tax: you can choose 10% of the gross income or 15% of the net income; you can deduct the costs for the tax office.

Other residence types in Hungary
Foreign investment program for overseas entrepreneurs - though business formation: 50,000 EUR is required but you cannot become an EU national before applying on this type of visa. The business owners become the controllers and as hired employees pay taxes. There is no way for obtaining residency based ion the investment scheme of government bonds residency program - suspended in 2017.

Which residence permits offer a path to permanent residency and citizenship?
All the previously mentioned programs open the path to permanent citizenship after 8 years of temporary residency.

Restrictions & Challenges
Buy-sell cost is around 10%. Taxes at purchasing the property are: stamp duty - 4%, VAT 20%, legal costs - 1%. Non-EU citizens need to pay additional 200 EUR is the cost of a permission fee. Capital Gains Tax - 15% which can be decreased; the longer you keep the property the lower the tax; there is no CGT after 5 years of owning the property. After 8 years of holding temporary residence the applicants can go for Citizenship, together with their dependents such as the Spouse and children aged 18 and less. Passing a language test in required.

Smart. Ambitious. Competitive. Three words are to describe why you can consider Hungary as an ideal location for your growing business. Hungary is a bustling business hub situated right at the very heart of Europe; physically and in historical, geographical, cultural and economic terms, all destinations are within easy reach. As a full European Union member, companies coming to do business here join the EU market of more than 500 million people. Now, it’s your turn to explore the opportunities that Hungary can offer your business.

>Growth And Business Advantages

Hungary is a modest performer among emerging economies and its high dependence on exports, in particular on automotive shipments, causes above-average cyclical fluctuations in growth. Real GDP expanded by an average of just +2.2% over the past 20 years though the performance was better over the last five years prior to the Covid-19 pandemic (+4.1% on average, on par with the average of the Central and Eastern European EU member states and above the whole Emerging Europe average). As a consequence of the dependence on exports (accounting for around 90% of GDP), Hungary's economy was hit harder than others by the global Covid-19 crisis (-5.0% in 2020), despite strong economic policy support. Going forward, we expect a strong, broad-based recovery with annual growth of more than +7% in 2021 and around +4.5% in 2022. Consumer spending, fixed investment and net exports will be key drivers of the rebound.

Why invest in the Hungarian property market?

In general the property sector’s prime submarkets saw growth in rent levels thus decreasing vacancy ratios leading to increased investor appetite and transaction volumes. By investing in property, the highest returns can still be achieved in the CEE region. There is an increasing volume of investors eyeing the market and amongst the hotels the upscale/luxury sector is very much favoured. Improving the image and increasing the popularity of Budapest as a city-break destination. There are a number of seasoned destinations in provincial Hungary that could support the advent of new hotels and resorts. Tourism volume and hotel performance have shown a continuously increasing tendency since 2009 both in respect to Budapest and the countryside converging into solidly performing hotels year in year out. High investment appetite experienced for quality income generating products meets limited supply. Hungary is regarded as the fifth strongest health and medical destination in the world due to its excellent geographical location, outstanding quality of thermal waters and abundant geothermal resources. The country is a politically and economically safe destination. real INDUSTRIAL OVERVIEW

REAL ESTATE TRENDS

Real estate prices in Hungary have doubled in the last decade. In the European Union, only two other countries recorded greater price increases - Estonia and Luxembourg - according to Eurostat data. - Apartments in Budapest are getting more expensive - admits Gabor Borbely, director at CBRE. In his opinion, the reason for this is the fact that in Hungary flats and lots are still cheaper than in other European Union countries. If you compare them with what you have to pay for a similar flat or house in Warsaw or even in Prague, i.e. in cities where people have comparably the same amount of money and the geographic location is also comparable, Budapest is still 40-50 percent cheaper. Market prices start from 2.5k USD per square meter to 3.5k in the case of completely new apartments. There are also much more expensive offers for houses and apartments in the hills surrounding Budapest, near the castle, or in the very center with a view of the Danube, where sq. m prices start from 6.5k USD.

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Statistics

Capital City
Budapest
Currency
HUF
GDP Growth
6.3%
GDP Per Capita
€15,323
Annual Inflation
3.6%
Unemployment
3.7%
Avg net salary
€1,187
Avg salary growth
5.9%
Area (km²)
93000
Border states
AT, SK, UA, RO, HR, SL
Residence

via 250,000 EUR investment in properties

For Sale
Miniature
€566,500
For Sale
Miniature
€155,000
For Sale
Miniature
€223,000
For Sale
Miniature
€240,000
For Sale
Miniature
€170,000
For Sale
Miniature
€357,000
For Sale
Miniature
€273,000
For Sale
Miniature
€100,000
For Sale
Miniature
€600,000

Greece > Halkidiki > Pallini — Villa 150 m²

Greece > Halkidiki > Pallini
For Sale
Miniature
€610,000
For Sale
Miniature
€430,000
For Sale
Miniature
€211,000
For Sale
Miniature
€72,000
For Sale
Miniature
€195,000
For Sale
Miniature
€200,000
For Sale
Miniature
€499,000
For Sale
Miniature
€610,000
For Sale
Miniature
€127,000
For Sale
Miniature
€169,000
For Sale
Miniature
€550,000
For Sale
Miniature
€114,000
For Sale
Miniature
€305,544
For Sale
Miniature
€296,945
For Sale
Miniature
€235,000
For Sale
Miniature
€496,000
For Sale
Miniature
€410,000
For Sale
Miniature
€61,000
For Sale
Miniature
€302,500
For Sale
Miniature
€261,800
For Sale
Miniature
€700,000
For Sale
Miniature
€284,900
For Sale
Miniature
€260,000
For Sale
Miniature
€577,000
For Sale
Miniature
€134,500
For Sale
Miniature
€247,000
For Sale
Miniature
€671,000
For Sale
Miniature
€410,000
For Sale
Miniature
€127,000
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