Total buyer costs when purchasing property in Budapest in 2026 are typically five to six and a half percent of the purchase price for EU buyers, and six to seven and a half percent for non-EU buyers. On a three hundred thousand euro apartment, expect to budget fifteen to twenty three thousand euros in transaction costs on top of the price.
Property Transfer Tax (Illeték)
The largest single cost. Hungary charges four percent on the purchase price for residential property up to one billion forints (around two and a half million euros). Above that threshold the rate steps up but very few residential purchases reach this level.
On a three hundred thousand euro apartment, transfer tax is twelve thousand euros.
The buyer pays this tax to the Hungarian tax authority (NAV) within sixty days of registration. There are reduced rates for first time Hungarian resident buyers under thirty five, but foreign buyers typically pay the full four percent.
Lawyer Fees
Every property transaction in Hungary requires a qualified Hungarian property lawyer (ügyvéd) to draft and countersign the contracts. The seller's lawyer cannot represent the buyer, so a buyer must hire their own.
Typical fee is one percent of the purchase price plus twenty seven percent VAT, with a minimum that usually sits between one thousand and one thousand five hundred euros.
On a three hundred thousand euro apartment, lawyer fees are around three thousand eight hundred euros including VAT.
Foreign Buyer Permit (Non-EU Only)
Non-EU buyers (Americans, British, citizens of the Middle East, Asia, Latin America and similar) pay a fifty thousand forint government fee (about one hundred thirty euros) for the permit. The lawyer typically handles the paperwork as part of the standard fee.
Land Registry Fee
A flat six thousand six hundred forint fee (about eighteen euros) to register the new owner at the national land registry.
Translator and Notary Costs
If you do not speak Hungarian, the contract must be presented in your language. Most Budapest property lawyers provide bilingual English and Hungarian contracts at no extra cost.
If you cannot attend the signing in person, you grant your lawyer a power of attorney. The power of attorney must be notarised in your home country and apostilled. Allow two to four hundred euros for this depending on your country.
Mortgage Costs (If Financing)
If you take a Hungarian mortgage, expect to pay a bank arrangement fee of around one percent of the loan, an appraisal fee (eighty to one hundred fifty euros), and notary fees for registering the mortgage lien (around half a percent of the loan amount).
Cash buyers skip all of these.
Ongoing Annual Costs
After the purchase, expect the following annual outgoings.
Building common charges (közös költség): typically forty to ninety euros per month for an average apartment, covering cleaning, lift, building maintenance and the building's reserve fund.
Property tax (építményadó). Budapest does NOT charge a recurring annual property tax for residential properties, unlike some other European cities. Only commercial properties and certain large residential units pay this.
Utilities (electricity, gas, water, internet) average sixty to one hundred fifty euros per month for a small to medium apartment.
Income tax on rental income. Fifteen percent flat rate on net rental profit for individuals. With a double taxation treaty between your country and Hungary, the tax paid in Hungary is typically credited against tax owed at home.
Worked Example: 300,000 EUR Apartment
A non-EU buyer purchasing a three hundred thousand euro apartment in District 6 with cash would budget approximately:
Purchase price: three hundred thousand euros Transfer tax (four percent): twelve thousand euros Lawyer fees: three thousand eight hundred euros Foreign buyer permit: one hundred thirty euros Land registry: twenty euros Notarised power of attorney (if remote): three hundred euros
Total: approximately three hundred sixteen thousand two hundred fifty euros, or 5.4 percent above the headline price.
Frequently Asked Questions
Is there a buyer agent fee in Budapest? No, the seller pays the agency commission in Hungary. The buyer pays no commission.
Are there annual property taxes in Budapest? No annual property tax on residential apartments in Budapest. Only common charges and utilities.
How is rental income taxed? Fifteen percent flat tax on net profit. Allowable deductions include depreciation, maintenance, common charges, mortgage interest and management fees.
Can I deduct lawyer and transfer tax from the purchase? Transfer tax and purchase fees are added to your acquisition cost basis for capital gains tax when you sell, reducing future tax liability.
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