Capital City
GDP Growth
GDP Per Capita
Annual Inflation
Avg net salary
Avg salary growth
Area (km²)
Border states

via 250,000 EUR investment in properties

Hungary Map

Advantages of obtaining a property in Hungary

Hungary boasts a strategic location in the heart of Europe and enjoys a mild south-central climate that provides great weather from March to mid-October. With Wizzair, the Hungarian airline, offering connections to hundreds of destinations across Europe every day, including over 30 flights to London daily, it's a great hub for travel.

Real estate prices are moderate, ranging from 1.5-3k EUR/m2, and offer a growth yield of around a reasonable 6%. Tourism has steadily increased over the last 25 years from 3 to 9 million visitors per year, making it a popular destination for travelers.

Hungary's economy is stable, with a growth rate of around 5% annually and a decreasing national debt. The unemployment rate is very low at 4.5%, making it an attractive place for job-seekers.

Budapest, the capital city, is a great expat center, with a diverse community of EU citizens, Russians, Chinese, and other nationalities. The Hungarian passport offers visa-free travel to all Schengen countries, the US, New Zealand, the UK, Australia, and Canada, making it a convenient base for international travel.

Hungary's healthcare and education systems are quite good, providing access to quality medical care and education for residents and expats alike.

Residence permits on the grounds of owning real estate
To invest in property, a minimum investment of 250,000 EUR is required for personal ownership. While incorporating a company may be a cost-effective option, it is not recommended for those who only intend to own a single property.

Residence permits on the grounds of company formation
If you plan on generating revenue from leased properties, setting up a company to own the property can be a viable option. With a minimum investment threshold of 180,000 EUR, the company can also be involved in other areas of business besides property management. When it comes to rental income tax, you have a choice between two options: 10% of the gross income or 15% of the net income. Additionally, you can deduct any relevant costs when submitting your taxes to the tax office.

Other residence types in Hungary
Foreign entrepreneurs can participate in the foreign investment program through business formation with a minimum investment of 50,000 EUR. However, it's important to note that becoming an EU national is not possible before applying for this type of visa. As part of this program, business owners become the controllers and pay taxes as hired employees. It's worth noting that the government bonds residency program, which offered residency based on investment, was suspended in 2017 and is no longer an option.

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

The cost associated with buying and selling a property in this country is approximately 10% of the property's value. Taxes involved in the purchase include a stamp duty of 4%, a VAT of 20%, and legal costs of 1%. Non-EU citizens will also need to pay an additional 200 EUR as a permission fee. Capital Gains Tax (CGT) is set at 15%, although the rate can be decreased based on how long the property is held. The longer the property is held, the lower the CGT, and there is no CGT after 5 years of owning the property.

After holding temporary residence for 8 years, applicants and their dependents (such as spouse and children under 18 years old) can apply for citizenship. However, passing a language test is required for the citizenship application.


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.

Current Opportunities

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.