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Buying property

THE OFFERED POSSIBILITY

Hungarian investment possibility by purchasing properties

We inform you that we offer 4 kinds of real estate/possibility in Hungary:

Our own real estates

  • You can buy the offered real estates that are in our property for a fixed purchase price that shall be paid in a lump at buying.  

Real estates which we have option of purchase for

  • In cases of real estates that are not in our property, but we already have written contract with the owner of the real estate and the contract includes that we can buy the real estate unilaterally (that is we have option of purchase), and we can freely hand this possibility over you, so we sell the right/possibility of purchase of your chosen real estate. Naturally, in this case you are not liable for exercising the acquired option right, that is you can decide that you don’t buy the property. You can buy option of purchase for several properties from us, and you will decide whether you will purchase any of them later. 

The properties on our websites advertised by our cooperating real estate agencies 

  • We offer real estates that are for sale (they are advertised at the real estate agencies), but these are not in our property and we do not have option of purchase for the time being. If you are interested in one of these “foreign” properties, in case of your request – at a charge of certain commission – we get option of purchase for the property where the purchase price is lower than the selling price given by the real estate agency.  If we are not able to agree with the vendor of the property to sell it for lower price than the advertised one, you don’t have to pay us any fee/expense.

Other properties

If you don’t find a real estate to your taste, but you do so on other website, or do not so on other website either, but You share your conception with us, at your request we help you with pleasure to search and purchase the real estate chosen/imagined by you.   

Purchasing real estate as a foreigner in Western Balaton Region 

Details of expenses and conditions of real estate purchase (I/II)

Single expenses at purchasing:

  1. Purchase price of the real estate
  2. Fee of Hungarian lawyer who prepares the sale and purchase contract: 1 %-a+27 % VAT of real estate purchase price (but min. EUR 700 and max EUR 5.000 + VAT)
  3. Real estate register fee at Land Registry Office – EUR 20 fix fee (independent on the purchase price)  
  4. 4% of real estate purchase price for title transfer fee that shall be paid for State of Hungary about 4 months after purchase
  5. Commission of real estate agent: The buyer shall not pay it

Running expenses:

  1. Loal fee (land tax and estate tax) shall be paid every year to the local government according to location of the real estate. The tax amount is different per township, but the land tax about EUR 0,06/ m2/year, the estate tax is around EUR 1.1 Euro/m2/year. If the real estate owner gets a valid address registration ID and he/she marks the real estate as residence, he/she will have not to pay tax or will get significant discount/reduction. There is no/has never been value tax/property tax and it is not expected to be. 
  2. Operational costs:
  • Overhead expenses (base fee of piped water about EUR 1/month, consumption fee of piped water about EUR  1.3/m3;  base fee of wastewater about EUR 1.4/month; base fee of power about EUR 0.5/month, consumption fee of power about EUR 0.06 Euro/kWh; base fee of gas about EUR 2.8/month, consumption fee of gas about EUR 0.3/m3; fee of communal waste convey around EUR 40/year)
  • garden: Grass-cutting, pruning/spraying fruit trees, fruit picking
  • winterizing/emptying heating and water system
  • clearing/managing pool (if there is pool)
  • periodical maintenance expenses: Repainting outside/inside of the building, clearing at times

III. If the real estate owner does not want to maintain the property, it is reasonable to entrust a local Hungarian enterprise that will perform the duties/jobs in connection with the property for a certain fee. Please find attached the offer of one of our contracted partners that includes the provided services, but it is possible to modify the agreement (e.g. if the buyer would like to order other services or would like to order a service with other conditions/e.g. the buyer would like to order bio gardening and would not like to spray the fruit trees with chemicals)  

  1. If the real estate owner opens a Hungarian Forint bank account at a Hungarian bank in order to pay the overhead expenses/local tax/insurance (and because of account opening he/she has to travel here once more), the bank accounting is free, but there is a monthly fee (about EUR 1/month) and the bank will charge about EUR 0.5 per bank transfer.

Details of expenses and conditions of real estate purchase (II/II)

Single expenses at selling:

  1. In case of selling within 5 years with no profit: zero tax
  2. In case of selling within 5 years with profit: tax is 15%, from which you get 10% discount in case of selling in second year after purchase, additional 30% discount in case of selling in third year, additional 30% discount in case of selling in forth year, additional 30% discount in case of selling in fifth year.  
  3. In case of selling after 5 years: zero tax


Legal conditions of foreigners’ property purchase in Hungary:

  1. There is not necessary to have permission from the state for purchasing property excepting soil for the following people:
  • Citizens of memberships of EU
  • Citizens of other countries that take part in agreement about European Economic Area (EEA): Island, Liechtenstein, Norway
  • Citizens of Switzerland which is not EEA member, but it has same legal status related to free movement of persons according to the contract with European Community and its members.
  1.  It is necessary to have permission in case of obtaining ownership of property through succession either. In case of inheriting from close adherents (grandparent-child-grandchild) there is no death tax.

Conditions of periodic residence in Hungary:

  1. If the residence in Hungary of a EU/EEA citizen does not exceed 90 days per occasion, there is no need to have any kind of permit, that is the owner and his/her guests can use the property for maximum 90 successive days per occasion (after 90 days they have to leave Hungary even for a minute, and if they come back immediately, the counting of 90 days starts again).
  2. If the owner/family members/guest want to stay in Hungary for more than 90 days, they have to request registration and permit from the Hungarian authority, but virtually everyone gets it who requests.  

Conditions of settling down in Hungary:

  1. Settle down is permitted for the citizens of EU member states and Island, Liechtenstein, Norway and Switzerland. The owner and his/her family members will get a residence permit, registration ID and address registration ID in Hungary. If the owner ceases the prior address, the pension he/she gets from abroad will be tax-free in Hungary.

Technical transaction of property purchase (I/II)

  1. The buyer chooses the real estate on our website (based on about 10 photos, the given specifications and offered purchase price) – THE BROWSING IS FREE ON OUR WEBSITE
  2. On the buyer’s demand, we will send him/her video via email, or he/she is interested in some part/detail of the real estate, we will send him/her additional videos or we can solve live stream (Skype etc.), too – THIS IS ALSO FREE
  3. If you couldn’t find proper real estate on our website, we can help you to search the proper real estate according to your conception – THIS IS ALSO FREE. If you request, we can contribute to purchase the found real estate for you. 
  4. If you decided to buy the real estate and we can agree with the price, we will send you a sale and purchase contract in German language for an opinion via email or postal- THIS IS ALSO FREE. If you would like to travel to Hungary, we can help in organizing the travel on your demand.
  5. If you accept the conditions of the contract, we will send you all documents needed for the purchase (sale and purchase contract in German and in Hungarian and other necessary documents as forms for have the public utilities transfered into the buyer’s name).
  6. The buyer can sign these documents at home, but in this case the Hungarian lawyer will contact the buyer online (Skype etc.) and will make an about 1-minute video that shows how the buyer signs the contract, or the buyer signs one copy of the German language contract in the presence of a local deed (he/she will sign the other documents at home). 
  7. The buyer will send the signed documents as registered letter to the Hungarian lawyer, and will transfer the purchase price of the real estate, the fee of the Hungarian lawyer, and the registration fee of Land Register Office to the Hungarian lawyer’s deposit account).
  8. After receiving the documents and the amount (the Hungarian lawyer informs the contracting parties about it via email/phone), the Hungarian lawyer will have the vendor signed the documents, and will hand the sale and purchase contract over Land Register Office (he informs the contracting parties about it), will scan and send it to the buyer via email, and at the same time the lawyer will send 1 original copy of each document via postal to the buyer. – WE DON’T CHARGE POSTAGE!   
  9. If the buyer doesn’t want to use/utilize the purchased real estate, we can send the buyer a price list of the services provided by our professional partner who maintains/supervises real estates, from which the buyer can optionally choose the requested ad hoc or regular services. – SENDING PRICE LIST IS FREE   

Technical transaction of property purchase (II/II)

  1. Once Land Register Office registered the ownership into land register, the Hungarian lawyer will send the original copy of recording order of Land Register Office to the contracting parties via email and postal, and will pay the purchase price to the vendor – WE DON’T CHARGE POSTAGE, AND BUYER PAYS THE COST OF TRANSFER OF THE PURCHASE PRICE
  2. The Hungarian lawyer will notify the public utilities (water, power, gas, waste shipment, local mayor’s office) that the new owner of the property is the buyer. If the buyer would like to take out insurance for the real estate (it is not compulsory, but recommended), the Hungarian lawyer will get and send the offer of ALLIANZ HUNGÁRIA Biztosító Zrt. in German language without any fee.  
  3. The public utilities of real estate will send the buyer (to the address of the bought real estate) the contracts (2 copies) related to the public utility service 2-3 weeks after notification, the buyer has to sign 1copy and send back to the certain public utility via postal. If the buyer chose to pay the public utility invoices by cheque (these cheques can be paid only in post offices!), the public utilities will send the invoices and cheques to the address of the real estate (or another address given by the buyer) every month/quarter.  If the buyer chose to open a Forint bank account in Hungary (the Hungarian bank will inform the buyer’s domestic tax authority about it!) and the bank will automatically withdraw public utility invoices from bank account, the buyer won’t be able to order direct debit at opening bank account, just when the buyer already got the new public utility contracts (because the buyer’s so called registry partner number will be marked in these contracts). In this case the buyer has to go to the Hungarian bank once again and has to show the public utility contracts, or if the buyer asked/got net banking possibility, on the bank website he/she can set that the public utility invoices will be automatically withdrawn by the bank (the bank will inform the public utility providers about it).     
  4. The tax authority will call for to pay 4% fee about 4 months after entering sale and purchase contract within 30 days of receipt of this decision by bank transfer.  

 

If You find attractive the Hungarian real estate market trends, and Western Balaton Region arouse your interest, additionally it is important for You that purchase of the real estate will be managed professionally by a reliable partner, don’t hesitate to contact us!

Our offer:

Our own properties  

Properties we have option of purchase for

Additional properties that we contribute to purchase standing for You

Our additional value creating services