Foreign nationals are entitled to buy property in Hungary, but must apply to the nearest Metropolitan or County Administrative Office for authorization (a fee of Ft. 50,000 is payable).

Individual buyers are limited to the purchase of one property, unless they first register as a Hungarian company. The advantage of forming a limited company, which might just be between a husband and wife, is that a lower tax rate of 16% is payable on selling the property, compared with the 20% payable by a private individual.

Hungarian property is likely to be a good investment, as real estate prices are rising rapidly. The vast majority of property in Hungary is privately owned. All properties are freehold.

There are major variations in property prices between different parts of the country. The most expensive areas are Budapest and the surrounding region, and Western Transdanubia. Cheaper properties can be found in the eastern region, and in small towns and villages.

Average prices for new property in Pest are between Ft.270,000 and Ft.320,000, considerably more in Buda, while in a small town similar properties are available for around Ft.150,000 per square metre. Older properties are available at lower cost but are often in poor condition.

When buying property in Hungary you will need to appoint a Hungarian lawyer to conduct legal checks on the property on your behalf and to handle the financial transaction. A deposit of 10% of the purchase price is normally payable to the seller on signing the purchase contract, at which stage your name is included on the title sheet as confirmation of your intention to buy. When the outstanding balance is paid you will be registered on the title sheet as the exclusive owner of the property. Legal fees and stamp duty usually amount to around 10% of the purchase price.

Hungarian banks provide mortgage facilities for foreign buyers of up to 70% of the purchase price, repayable over a maximum of 20 years.

Details of properties for sale are available from estate agencies and advertised in local newspapers.