The acquisition of real estate by foreigners is subject to special regulation in Hungary, as it has always been a special and often delicate issue to what extent and under what conditions their acquisition of property is permissible
There is still a separate legal regulation on the process and conditions of acquisition of real estate by foreigners. Who counts as a foreigner? What are the most important rules for acquiring real estate for foreigners? With the help of our expert, we will answer the most important questions!
Who counts as a foreigner?
With the accession to the European Union, the borders for the acquisition of real estate have also significantly expanded. Thus, at present, a foreigner is a person who is not a national of a Member State of the European Union or a national of a State party to the Agreement on the European Economic Area. Non-EU countries such as Norway and Iceland are parties to the Agreement on the European Economic Area (EEA), so citizens of these countries are not considered foreigners in terms of acquiring real estate.
A foreigner can be not only a person, but also a legal person or organization. These organizations are considered foreign if they are not established in a Member State of the European Union or in an EEA State. Thus, EU or EEA citizens are not considered foreigners for the purpose of acquiring real estate.
What kind of real estate can a foreign person acquire?
The right of foreign persons to acquire real estate does not extend to all real estate. A foreign person or organisation may not acquire ownership of the field and forestry land, ie it may not acquire foreign arable land. In this way, the opportunities for foreigners to acquire property are limited to the remaining real estate, which means non-agricultural or forestry land, and especially dwellings, dwellings, cottages, other building real estate, building plots.
Acquisition of real estate by foreigners is subject to special regulation in Hungary, as it has always been a special and often delicate issue to what extent and under what conditions their acquisition of property can be allowed.
Conditions for the acquisition of property by foreigners
Acquisition of real estate by foreign persons requires a permit, which must be applied for at the competent county (capital) government office. A permit is not required if the foreigner has acquired the property by inheritance. Acquisition of property should be allowed as long as it does not harm the public interest or the interest of the municipality. The permit must also be granted if the foreign person is a sole proprietor, wishes to engage in economic activity in Hungary and the property to be acquired is necessary for the continuation of this economic activity, wishes to live in Hungary and does not harm the public interest.
We can speak of a violation of the public interest if the foreign person is subject to expulsion or a ban on entry and residence, an arrest warrant has been issued against him or her, or a criminal record. The public interest may also be harmed for other reasons of public security, public order or public health. In the case of a foreign organisation, the acquisition of property is contrary to the public interest if, for example, the tax number of the organisation has been suspended or canceled or if the organisation is in liquidation.
The mayor of the local government concerned may declare that the local government’s interest has been harmed. For example, the acquisition of property has been denied on the grounds that a large number of citizens of the same foreign country have already acquired property in the given settlement. Thus, the mayor found the acquisition of property by additional citizens from this country to be detrimental to the interests of the municipality.
