Buying property in Hungary gives you residency?

The most frequent questions are: Is the purchase of real estate mandatory for a residence permit? Does anyone who buys a property in Hungary automatically receive a residence permit? Do I need to live in Hungary with the residence permit received? Can I get a permanent residence permit right away without having a temporary residence permit first? How easy or difficult is it to buy a property? Do I need special permission to buy a property in Hungary? Is the fact that someone buys real estate in Hungary enough in itself to get a residence permit?

Our law firm has decades of experience in the temporary residency and permanent settlement of foreign citizens in Hungary. In general, we can say that there are a lot of misunderstandings among foreigners regarding the purchase of real estate in Hungary.

1. Many people think that buying real estate in Hungary is simple and easy, without risks, but we cannot confirm this. In our opinion, the technical and legal background of the given property should be carefully considered and checked, because there are a lot of fraud and warranty problems. It is worth involving an attorney-at-law from the very beginning of the procedure, who can check the legal background of the property and who can ask a technical expert to examine the technical background of the property.

2. It is a misbelief that it’s mandatory for any residence permit to purchase real estate in Hungary. No, there is not such an obligation. Those who only rent, for instance, a flat, have the same chance of getting a residence permit. The immigration police do not look at whether a person owns an apartment, but whether they have valid accommodation in Hungary: this can be an apartment used based on courtesy use, an apartment used based on a rental agreement, or an apartment owned by a foreigner, etc. Perhaps the only case where it can be important whether the foreigner has his own apartment is the procedure for a permanent residence permit or citizenship. However owning an apartment is not a mandatory condition for these either, it can only be an advantage in the evaluation of the foreigner’s application because it supports the strong links and connection to Hungary.

3. However, if someone decides to buy one or more apartments, it does not automatically mean that they will receive a residence permit in Hungary. It doesn’t matter whether you buy a property or properties for 50,000, 155,000, or 250,000 Euros, the approval of the residence permit is not automatic. If the application is approved, then, as a general rule, the foreigner must live in Hungary, and he/she can only leave the territory of Hungary for a short time, otherwise the residence permit will be revoked. It is also important that you the foreigner can NOT get a permanent residence permit right away. No such program exists. The first step for everyone is a temporary residence permit.

4. It is also worth mentioning that foreigners cannot basically acquire agricultural land in Hungary, and for the purchase of other types of real estate it is also not just an option but mandatory to use the assistance of an attorney-at-law. A part of the process is that the foreigner must obtain a permit from the competent government office to acquire the property with the help of the law firm representing the foreigner. This usually extends the procedure by 1 month approx. Exceptions to this are the citizens and legal entities of the member states of the European Union, as well as the citizens and legal entities of Norway, Lichtenstein, and Iceland, citizens of Switzerland, as well as refugees, and those dual citizens whose one citizenship is Hungarian.

In summary, compared to Western European countries, it is still very worthwhile to buy real estate in Hungary, as you can get an apartment or a house very cheaply in a very livable country. But you have to be very careful while buying real estate here. From the very beginning of the procedure, it is better not to entrust the lawyer of the real estate agency interested in the sale, but an independent attorney-at-law. It is important to realistically see that, although the purchase of real estate can be an important element of staying in Hungary, the fact that someone owns Hungarian real estate in itself does not automatically mean the right or eligibility to stay in Hungary. There are many more important aspects and issues than this, which our expert law firm – specialized in residence matters – will gladly explain to our Clients.