Acquisition rates among the lowest in Europe
Budapest is one of the cheapest capital cities in the European Union concerning real estate, and this is also true for top-of-the-range property. The average price by sqm for a prestigious apartment located in the most popular districts (1st, 2nd, 5th, 6th, 7th, 13th districts) is 3 200 euros*.
*Study performed on a set of 50 prestigious apartments, September 2016.
Budapest, a fast growing capital city
Budapest is the most central capital city in Europe, with no less than 7 borders and several capital cities nearby. On the development side, Hungary is considered (along with Poland) to be the most emergent country in Europe. The Hungarian capital city is attractive in many fields, especially for real estate, tourism, thermal baths, dental care, universities (medicine, economics, architecture, engineering etc..) as well as in the wine-making field. The municipality of Budapest is very invested in the development of the capital city. Therefore, many reinstatement programs see the light of day. The city is attracting more and more tourists, expatriates and foreign students.
A very favorable taxation
– Lack of property tax and council tax; these taxes don’t exist in Hungary.
– The mandatory charges related to the acquisition are around 6% (4% for the State under the form of the move rights and 2% for the lawyer who replaces the notary in Hungary).
– The taxation is only 15% of the Hungarian real estate income (flat tax). Hungary has signed conventions to prevent double taxation with many countries around the world.
A potential added value potential
– The real estate prices in Budapest are still low when you buy and are not overpriced (real estate bubble) like in many European capital cities.
– The future project of Hungary consisting of getting into the Eurozone will be an added value factor in the real estate field.
– The taxation rate on added values is only 16% in the first year and then decreases gradually until complete exemption of the tax after 5 years of possession of the property.