Budapest: affordable real estate and easy way to residence permit.

Budapest: affordable real estate and easy way to residence permit.

The pearl of the Danube & ndash; the city of Budapest is often compared with Paris. Here there is a mild climate, coziness and warmth inherent in small Eastern European countries, and the gaze enjoys majestic architecture. The flow of migrants passed Hungary, so the situation here is very calm. Despite the steady rise in prices, housing and commercial real estate are in the Hungarian capital cheaper than in many other European cities. In addition, foreign owners of their own homes in Hungary can very quickly get a residence permit here.

About these and other advantages of the Budapest real estate portal EE24 will tell Lydia Ivanova, a specialist of the Department of Overseas Real Estate for Hungary corporation & Advex & raquo ;.

General characteristics of the market.

The Budapest market is currently in a phase of active growth. In 2015, real estate located in the center of the Hungarian capital, went up by 28%. The tendency of a steady rise in prices is now preserved.

Despite the availability of new buildings, the greatest demand is secondary housing in the city center. The most expensive areas are 5.6, districts, as well as areas close to the inner ring & ndash; 7, 8 13.

In the most expensive 5 district a small one-room apartment can be purchased for � 120 000 and above. The same objects in 6, 7, 9 districts cost � 60,000 – � 90,000. The lowest prices (from � 40,000 for a one-room apartment in normal condition) are recorded in remote areas of the city (15.16, 17, 20). A similar apartment in a new house in the center of the city is sold at a price of � 90,000.

In Budapest, a rather popular and commercial real estate & ndash; hotels, aparthotels, offices. In the center of the city a small hotel for 6 rooms can be bought for � 300,000. The prices for large hotels with a concert hall, a large restaurant start from � 1 million.

More than 50% of real estate buyers in Budapest & ndash; the Hungarians themselves. In connection with the national currency crisis, the number of Russian clients decreased. But the demand for inexpensive apartments from the part of Ukrainians became more active, because Hungary borders on Ukraine. Now a lot of requests come from China, Arab countries, some Western European countries.

Often, foreigners buy property in Hungary in order to rent it out, and then, after retirement, move here to a permanent residence. An additional bonus for the buyers category of 50 years and above are numerous healing thermal springs. They attract people who want to improve their health from all over the world.

One of the important categories of property buyers in Budapest & ndash; children of wealthy parents who came to Hungary for higher education. It’s not for nothing that the British rating company “Times Higher Education & raquo; including several Universities of Budapest (Semmelweiss Medical University, Polytechnic University, University of Economics) in its list of the best universities in the world.

Sometimes wealthy students buy two- or three-room apartments in Budapest, and vacant rooms rent out to classmates. Thus, it is possible to substantially reduce the costs of studying and living in Budapest.

All transactions with real estate in Hungary are conducted with the participation of a lawyer. After choosing an object, the lawyer checks its legal purity. Then he draw up a contract of sale and opens a special transit account for the transaction. On the transit account of the lawyer, a deposit is received from the buyer in the amount of 10% of the value specified in the contract.

In the meantime, the buyer must obtain permission from the municipality for the transaction (within 2 months).

The agreement with other necessary papers is submitted to the Cadastral Service. Pay 80% of the purchase price and state duty (2-4%). The last 10% of the new owner makes on the basis of the act of acceptance-transfer.

Real example: all the costs for the transaction when buying an apartment for � 50 000 will be � 5 353.

It is desirable to register a commercial property in Hungary for a legal entity. This is due to the fact that if an individual acquires a commercial space from a legal entity, it becomes necessary to pay VAT.

Foreign citizens can apply for mortgage loans in Hungarian banks. The main condition is & ndash; availability of documents that confirm that the borrower receives a “white” raquo; salary.

Citizens of Russia can get a mortgage in the local Savings Bank at 5-6% per annum. The loan amount is no more than � 65,000.

When buying a property, a property transfer tax is paid, the amount of which varies between 2% and 4%, depending on the characteristics of the property. There are no annual taxes on ordinary real estate in Hungary. The owners of prestigious housing and real estate in the resort cities pay an annual municipal tax. The highest rate of such a municipal tax is & ndash; in Heviz (from � 100 to � 150).

Tax liabilities arise from the seller of real estate, if he owned the facility for less than 5 years. The rate of income tax on the sale of real estate is 25% of the difference in the purchase price and the sale price. The taxable amount also depends on the tenure of the apartment.

The applicant for residence permit in Hungary must initially obtain a visa D in the consulate of Hungary in his country. The list of documents for visa D includes an extract from the Cadastral Service on the purchase of real estate, a certificate of income, medical insurance and an account statement with the bank. Obtaining D types will cost you � 60.

Each member of the family needs at least 8 sq.m of living space. In addition, you must pay health insurance (from � 100 to � 3600 per year, depending on the type) and have at least � 6,000 per person per year (or better, � 10,000) on your bank account.

Having on hand the visa D, the investor comes to Hungary and submits the documents for residence permit. Ready residence permit you will receive after 2-3 weeks. To applicants for residence permit through investment in real estate in Hungary, no claims are made on the value of the object.