Hungary is one of the largest tourist centers in Europe. Despite the political events currently taking place in the country, it continues to be a gem for vacationers. Thermal springs are everywhere, on which medical centers and therapeutic baths have been built. Lake Balaton, one of the largest in Europe, is a favorite vacation spot for Austrians, Germans, and Italians. Hungary is a country with a rich cultural heritage, including architectural heritage. Contrary to the destructive whirlwinds of history, destructive both for the people and for culture, many masterpieces have been preserved that are worth getting to know. Two-thousand-year-old monuments of the Roman Empire coexist with buildings from the time of the Turkish yoke, Romanesque churches, and impregnable medieval fortresses.
Budapest is the pearl of the Danube. It is only 2.5 hours by car to Vienna (248 km), and on very good roads. And you can buy an apartment for much less money than, for example, in a capital suburb.
Why not a backup airfield?
Hungary is currently one of the most promising countries in Eastern Europe. An analytical study of real estate markets in transition economies conducted by Cushman & Wakefield / Healey & Baker identified three most promising countries for investment among those that joined the EU: Hungary, the Czech Republic, Poland (in that order). To compile the rating, analysts conducted research on 50 different criteria, including the economic and political situation, the level of corruption in government bodies, the structure of the property market, and mechanisms for protecting investors' rights.
The legally established minimum monthly salary is $260, with a subsistence minimum of $350. Food prices are quite reasonable.
There is a significant Russian-speaking community in Hungary. Several newspapers in Russian are published in Budapest, there is a Russian video library, a library, shops with pickles and caviar dear to the heart and stomach of our compatriot, restaurants, and so on.
Budapest or the Suburbs
Of course, the most popular in terms of real estate acquisition is the capital of Hungary, Budapest. You can buy an apartment or a house here to suit any taste and budget. The price range for real estate, both in Budapest and in the suburbs, is very wide: an inexpensive apartment (about 10 million forints or $50 thousand) can be found in Pest. More affluent citizens usually choose the Buda side of the Hungarian capital. Here, a decent apartment can be purchased starting from $75 thousand. Even wealthier buyers tend towards expensive apartments in Budapest and their own mansions in the green belt of the suburbs.
When choosing a place to buy, much depends on lifestyle and the purpose of acquiring real estate. Of course, living in the center is convenient: everything is at hand - offices and entertainment. For many, it is not easy to exchange this noise and movement of the capital for a quiet suburban life. For family people, it is better to pay attention to houses in the green belt of the Hungarian capital, especially since prices for apartments and houses there are more affordable than in the capital. For example, a house in the suburbs will cost half as much as the same house in the city.
It is notable that many of our compatriots, having chosen Hungary, prefer to order a brick house project and build a new home on the purchased plot, rather than buying ready-made housing in the dusty center. Not only is a brick house advantageously distinguished by its environmental friendliness, but its construction is also much cheaper.
The procedure for purchasing real estate by foreigners in Hungary is regulated by a relevant government decree of 1996. According to it, a foreign citizen can purchase real estate in the country for personal use, except for agricultural land and nature reserves. Hungarian legislation provides for free import of capital, currency exchange, and repatriation of profits.
Taxes
Hungary has a tax on acquired property. This is a one-time tax paid within a year after the transaction and ranges from 2 to 6% depending on the price. New apartments worth up to 30 million forints (approximately $150,000) are exempt from this tax. For houses and land, one-time duties are 10% of the property value. If you purchase a plot of land and build a house on it within four years, you are also exempt from paying the 10% tax.
There is also a municipal tax on buildings, the amount of which is quite insignificant in total expenses. When signing a sales contract, the buyer is usually informed of the amount of upcoming utility payments, consisting of services for cleaning common areas and repairs. Apartments are equipped with meters for consumed resources: electricity, water, heat. Tariffs are at the average European level. The cost of legal services when purchasing real estate: 1-1.5% depending on the value of the property.
Visas
Currently, there is a visa regime for entry into Hungary for us. Possession of housing allows obtaining a type C visa (tourist, private) for a period of 30-90 days. If staying in the country for no more than 30 days, registration with local authorities is not required.
If a long-term (up to one year) type D visa is needed, the most direct way for this purpose is to open your own company and enter the country as a director-owner. The costs of opening a company are about €1,500. At the end of the above-mentioned one-year visa, you can apply for a temporary residence permit, and after three years, for a residence permit.
Immigration Permit
In Hungary, a foreigner who has been legally resident in the country for at least three years from the moment of entry may obtain an immigration permit. Leaving the country for up to 45 days annually does not constitute an interruption of residence in Hungary. Also, the foreigner must be provided with housing and income in Hungary.
Exemption from the three-year residence requirement may be granted to a foreigner who applies for emigration as a family member if his/her ancestor was a Hungarian citizen.