Hungary – Property Letting

How does the property letting process work in Hungary?

Hungary’s landlord and tenant legislation is widely regarded as tilted in favour of tenants, with residential rental arrangements subject to close regulation. Although there are no statutory caps on rent levels and no restrictions on how much rent can be raised, ending a tenancy and removing a non-compliant tenant can be a protracted and legally demanding exercise. Landlords who take the time to understand how the system operates before entering into any agreement are far better positioned to avoid expensive complications later on.

In most cases, the letting process begins with marketing the property. Landlords typically advertise through online portals, local estate agencies, or both, in order to attract prospective tenants. Before committing to a lease, a landlord may request evidence of a tenant’s financial standing and reliability to confirm they can meet their obligations — though this kind of vetting is not yet standard practice across the Hungarian market.

The single most important requirement is a properly executed written rental agreement, signed in person by both parties. Agreeing terms by email has no legal validity. While some jurisdictions recognise verbal arrangements or written electronic exchanges as carrying evidential weight, Hungarian law treats the written form as a strict prerequisite. To protect both parties fully and prevent future disagreements about contractual terms, the contract should be drawn up either with the signatures of two witnesses attesting it, or countersigned by a qualified lawyer.

A highly practical tool for both landlord and tenant is a detailed handover protocol — sometimes referred to as a condition report — completed when keys are exchanged at the beginning and again at the conclusion of the tenancy. This document records the state of the apartment, including walls, floors, windows, doors, fixtures, appliances, and furniture, as well as current meter readings and an inventory of all keys and remote controls handed over. While not a statutory requirement, this record provides critical evidence if a deposit dispute arises.

One clause that many experienced landlords include is a notarised eviction declaration (kiköltözési nyilatkozat). Once properly notarised, this declaration carries special enforcement status, enabling the landlord to engage a court bailiff directly to carry out an eviction — bypassing the need for full litigation — should the tenant fail to vacate after a valid termination. Given the speed at which the Hungarian court system processes eviction cases, this provision can save landlords a considerable amount of time and money.

The most prevalent lease length for residential properties in Hungary is 12 months, which applies to both furnished and unfurnished lettings. Six-month contracts exist but are less frequently used, while longer arrangements can be negotiated between the parties.

What types of rental arrangements are available in Hungary — long-term, short-term, and holiday lets?

Hungary accommodates a range of letting models, but the regulatory requirements and tax treatment differ considerably depending on whether a property is let on a long-term residential basis or offered for short stays. This distinction has become especially consequential given recent legislative developments.

Long-term residential letting — the leasing of a property for a fixed or open-ended residential term, most commonly of one year or more — is the simplest and most straightforward model. From a VAT standpoint, long-term residential letting is exempt, meaning landlords do not charge VAT on rent. Rental income remains subject to personal income tax (covered in detail in the tax section below), but the administrative requirements are considerably lighter than for short-term arrangements.

Short-term and holiday letting — such as renting through Airbnb or comparable platforms — is governed by far more complex rules. Since January 2025, Hungary has imposed a two-year freeze on all new short-term rental registrations, meaning no new short-term or private accommodation licences will be issued until 31 December 2026. This is a major constraint that any landlord or property investor must take seriously when planning their letting strategy.

Beyond the national moratorium, Budapest’s Terézváros (Theresa Town) district voted from January 2026 to ban short-term letting entirely, largely in response to the pressures of over-tourism. There is growing concern that other districts within the capital, and potentially other Hungarian cities, may introduce comparable measures.

Short-term lets that were already lawfully registered prior to the moratorium are permitted to continue, but they must remain fully compliant with all applicable requirements, including possessing a valid tax identification number, maintaining proper registration of the property, and submitting all required reports to both the National Tourism Data Centre and the relevant district notary.

Landlords operating in the short-term accommodation space — letting by the day or week — are liable to collect and remit a tourism tax on behalf of their guests. Additionally, if annual revenues from such activities exceed HUF 18 million (the VAT exemption threshold as of 2025), VAT obligations arise. This makes the administrative burden of short-term letting substantially heavier than that of long-term residential arrangements.

What rental income can landlords expect in Hungary, and how are rates set?

Hungary imposes no statutory ceiling on rents and no legislative restriction on how much landlords may increase them; the parties are free to set rent at whatever level they agree. Unlike several other European markets — such as Ireland’s Rent Pressure Zone mechanism or Germany’s Mietpreisbremse — Hungary has no national system of rent control or compulsory indexation for private residential lettings.

Achievable rent levels depend heavily on the property’s location, size, age, condition, and the facilities it offers. Conducting thorough local market research and keeping abreast of supply and demand trends is essential when determining a competitive asking rent. Budapest commands markedly higher rents than any other Hungarian city, and even within the capital there is significant variation between districts.

Annual rent adjustments are common and typically calculated by reference to one of two indices: the Monetary Union Index of Consumer Prices (MUICP), published by the European Central Bank, for leases denominated in euros; or the International Comparison Program (ICP), published by the Hungarian Statistical Office, for leases denominated in Hungarian forints. It is advisable to specify the chosen index clearly in the tenancy agreement so there is no ambiguity when adjustments fall due.

In terms of rental yields, during Q3 2025 average yields across the main Hungarian cities were running at approximately 5.06%, with district-level figures in Budapest varying, and only District XI falling consistently below the 4% mark. For the most current market statistics, landlords should consult resources such as the Hungarian Central Statistical Office (KSH), as conditions shift with the wider economic environment.

Do landlords need to provide a furnished or unfurnished property in Hungary?

There is no universal legal obligation for private landlords to furnish a property before letting it, though tenancy law does establish certain baseline expectations. As a general principle, landlords are required to hand over the dwelling together with the appliances appropriate to the comfort classification of the property, in a condition that makes it suitable for proper residential use.

In practice, the Hungarian rental market accommodates both furnished and unfurnished properties, and the decision about which to offer is driven largely by tenant demand rather than by statutory requirements. A 12-month lease is the norm for both categories. Furnished properties tend to appeal to internationally mobile tenants and shorter-term occupants, while unfurnished lettings are more typical where longer-term domestic tenants are sought.

Hungarian law does not place furnished and unfurnished properties into separate regulatory categories for private residential lettings, nor does furnishing status have a direct bearing on income tax treatment. That said, landlords who let furnished properties and opt to account for actual expenses rather than using the flat-rate cost deduction may be able to claim depreciation on furniture and white goods — a matter worth exploring with a local tax professional.

Regardless of whether a property is let furnished or not, completing a thorough condition report at the outset of the tenancy — one that records the state of all fittings, appliances, furnishings, and any pre-existing damage — is strongly recommended. This record serves as the primary point of reference when resolving any disagreement over the deposit at the end of the tenancy.

Do you need a licence or registration to let a property in Hungary?

For conventional long-term residential letting, Hungary does not operate a landlord licensing or registration scheme comparable to those found in, for example, Scotland or Ireland. Letting agents operating in Hungary are equally free from mandatory licensing requirements, though a number of professional associations exist to which reputable agencies may belong, each with their own codes of conduct and professional standards.

The picture is different for short-term and holiday lets. Those short-term rental operations already in existence and lawfully registered prior to the moratorium must maintain full compliance with all applicable requirements: holding a valid tax identification number, keeping the property’s registration current, and submitting all required activity reports to the National Tourism Data Centre and the relevant district notary.

All landlords — whether resident in Hungary or not — must hold a Hungarian tax identification number (adóazonosító jel) in order to declare rental income lawfully. Non-resident investors are required to obtain this number before earning any rental income from Hungarian property. This is a prerequisite for letting legally, irrespective of whether the arrangement is long-term or short-term.

Non-resident landlords from outside the EU and EEA should be aware that additional permissions may have been required at the time of purchasing the property. EU and EEA nationals enjoy the same property acquisition rights as Hungarian citizens, whereas nationals of other countries must first obtain a property purchase permit from the local government office (kormányhivatal) in whose jurisdiction the property falls. As rules in this area are subject to change, always seek guidance from the relevant local government office and a qualified Hungarian property solicitor.

How do you obtain a landlord licence or register as a landlord in Hungary?

Because there is no formal licensing system for long-term residential landlords in Hungary, the registration process for most property owners amounts to ensuring they are properly enrolled with the tax authority and that their tenancy agreement satisfies all legal requirements. The steps below outline the key compliance actions for both resident and non-resident landlords.

1. Obtain a Hungarian tax identification number (adóazonosító jel). Every non-resident earning rental income from Hungarian property is required to obtain this number before commencing any letting activity. It is also needed when purchasing real estate in Hungary. Applications are submitted through the Hungarian National Tax and Customs Administration (NAV).
2. Confirm ownership and check for legal encumbrances. Before entering into any rental contract, it is advisable to obtain a land registry extract for the property to verify your status as the registered owner and to identify any charges or restrictions that could affect the letting arrangement.
3. Draw up and execute a legally binding written tenancy agreement. The lease must be in writing — a confirming email will not suffice. It should be printed, signed by both landlord and tenant, and authenticated either by the signatures of two witnesses or by a lawyer’s countersignature in order to have full evidential force.
4. Consider including a notarised eviction declaration. For foreign investors and overseas landlords in particular, the cost of having a notarised immediately enforceable eviction declaration (kiköltözési nyilatkozat) prepared is generally money well spent. This document can prevent the need for protracted court proceedings should the tenant refuse to leave after a valid termination notice.
5. Prepare a handover condition report. Record the state of the property together with the tenant at the beginning of the tenancy, noting meter readings, the number of keys issued, and the condition of all fixtures, fittings, and furnishings. Both parties should sign the report.
6. Register for short-term letting where applicable. If operating a short-term letting arrangement that was already registered before the 2025 moratorium came into force, ensure continued compliance by reporting to the National Tourism Data Centre and the relevant district notary, and confirm that tourism tax registration remains valid.
7. Submit an annual income tax return. All rental income earned from Hungarian property must be declared and an annual tax return submitted to NAV, regardless of whether the landlord is resident in Hungary. The filing deadline is 20 May each year for the preceding tax year.

What are the rules around deposits in Hungary?

When concluding a rental agreement, the parties may agree in writing that the tenant pays the landlord an additional sum of money as a financial guarantee — commonly referred to as a security deposit or tenancy deposit — against the fulfilment of the tenant’s obligations. Unlike countries such as the United Kingdom, where deposits on residential tenancies must by law be registered with a government-approved protection scheme, Hungary operates no equivalent centralised deposit protection system.

In the Hungarian market, security deposits are most commonly set at two months’ rent. However, if the amount provided as security exceeds three months’ rent, additional statutory rules come into play. As a general rule, the landlord is entitled to request a deposit of up to three months’ rent as protection against the tenant’s failure to fulfil their obligations under the lease.

Although the deposit is paid to the landlord and held by them, it does not become their property. It must at all times be treated as the tenant’s money and may only be applied to purposes expressly specified in the written tenancy agreement. Any circumstances in which the landlord may draw upon the deposit must be clearly defined in the contract — this is a distinction that has practical significance in the event of any end-of-tenancy dispute.

Permitted uses of the deposit typically include covering the cost of making good any damage caused by the tenant beyond normal wear and tear, or offsetting rent arrears and unpaid utility charges where the tenant has defaulted on their payment obligations.

A landlord is not entitled to retain any part of the deposit on account of ordinary wear and tear or the natural deterioration of the property or its contents. Because disputes about what constitutes acceptable deterioration are common, a carefully prepared condition report, signed at both the start and the conclusion of the tenancy, is one of the most effective safeguards available to both parties.

Hungarian tenancy legislation does not prescribe a specific timeframe within which the deposit must be returned. Under general legal principles, the deposit should be returned when the tenancy comes to an end, which ordinarily coincides with the physical handover of the property by the tenant. For the most current guidance, consult the NAV website and a local solicitor.

Who is responsible for maintenance and repairs in Hungary?

Hungarian tenancy law allocates maintenance and repair responsibilities between landlord and tenant, though the parties retain some freedom to vary these arrangements contractually. Understanding this division is particularly valuable for overseas landlords accustomed to different legal frameworks.

A landlord is obliged to carry out general upkeep of the property and to ensure that all electrical wiring, plumbing, gas pipework, and associated fittings are kept in working order. Where urgent defects arise — meaning those that pose a risk to life, threaten the structural integrity of the building, or seriously impair the habitability of the dwelling or that of a neighbouring property — the landlord is required to arrange repairs within 24 hours.

Where the parties have not made alternative contractual arrangements, the costs associated with maintaining and refurbishing the internal finishes, doors, windows, and fittings of the apartment are generally borne by the tenant, while the cost of replacing or renewing these elements is the responsibility of the landlord. In practical terms, routine upkeep — such as repainting or maintaining internal fixtures — falls to the tenant, whereas replacing a faulty boiler or carrying out structural work is the landlord’s obligation.

Hungary does not operate a mandatory rental property inspection regime for private residential lettings comparable to those found in Germany or the Netherlands. However, the Civil Code does impose clear duties on landlords regarding both the condition in which a property is handed over at the start of a tenancy and the standard to which it must be maintained throughout.

Tenants are required to notify the landlord in writing when repairs are needed. If the landlord fails to act on a valid repair request, the tenant may be entitled to terminate the agreement with immediate effect. For this reason, overseas landlords in particular should maintain a reliable network of local tradespeople capable of responding promptly to maintenance issues.

How are letting agents used in Hungary, and what do they charge?

Letting agents (ingatlanközvetítők) occupy a prominent role in the Hungarian rental market, especially in Budapest and other major cities. Their services can span finding and screening prospective tenants, preparing tenancy documentation, conducting viewings, and in some cases providing a comprehensive property management function.

There is no statutory licensing requirement for letting agents in Hungary, though various professional associations exist and reputable agencies may hold membership of these bodies, which maintain their own codes of ethics and professional standards. Unlike the United Kingdom — where the Tenant Fees Act 2019 prohibits agents from charging tenants most types of fees — Hungary imposes no equivalent statutory restriction on fees levied by agents on either landlords or tenants.

Agency fees are not uniform and can vary considerably. In many cases the fee amounts to approximately one month’s rent, which may be paid entirely by the landlord, entirely by the tenant, or split between the two parties by private arrangement. There is no centralised fee schedule or regulatory body setting maximum charges. Landlords should always verify current market rates by approaching agents directly, and may also check with the Hungarian Consumer Protection Authority (Fogyasztóvédelmi Hatóság) for any updated guidance on agent conduct and practices.

For landlords who do not intend to live in Hungary, engaging a full-service property management company can be a sound investment. Such companies handle day-to-day tenant relations, coordinate repairs and maintenance, and keep the property in good order. Management fees are typically calculated as a percentage of the monthly rent, with the precise level varying between providers and according to the scope of services agreed. Current rates should be confirmed directly with companies, as of 2025.

What taxes apply to rental income in Hungary?

Rental income in Hungary is subject to a flat personal income tax rate of 15% per year. This rate applies equally to resident and non-resident landlords, and it does not vary according to the volume of income earned. Since real estate is taxed in the jurisdiction where it is physically located — a principle recognised across international tax law — income generated by Hungarian property is liable to Hungarian tax regardless of where the landlord resides.

As of 2025, landlords have two options for calculating the taxable portion of their rental income:

• Itemised expense accounting: Landlords may deduct documented costs directly related to the letting — such as shared building charges, repair expenses, and depreciation — from gross rental receipts to arrive at a net taxable figure, to which the 15% rate is then applied. Flat-rate cost deduction: Alternatively, landlords may treat 90% of gross rental income as taxable and apply the 15% personal income tax to that amount, without needing to produce supporting receipts. This simplified approach is the more commonly used method among private individuals.

Expenditure backed by invoices is deductible from rental revenues, and individuals may account for depreciation when using the itemised approach. Where the simplified method is preferred, a standard 10% deduction is available without any requirement for supporting documentation.

Non-resident landlords are taxed in Hungary only on income arising from Hungarian sources. If you are regarded as a non-resident — broadly, someone whose principal place of habitual residence is abroad and who spends fewer than 183 days per year in Hungary — you will not be liable to Hungarian tax on income earned elsewhere in the world.

Hungary has concluded double taxation treaties with more than 80 countries. Where a relevant treaty is in force between Hungary and your country of residence, it may be possible to offset Hungarian income tax paid against your domestic tax liability. This should always be confirmed with a qualified Hungarian tax adviser and a tax professional in your home country.

Annual property tax does not apply in most parts of Hungary. An exception exists in areas near Lake Hévíz and Lake Balaton, where property owners are subject to an annual property tax set by the relevant local municipality. The national tax authority is the National Tax and Customs Administration (NAV), and the annual return deadline is 20 May for the preceding calendar year (as of 2025).

What are the rules around ending a tenancy or evicting a tenant in Hungary?

As noted throughout this guide, Hungarian tenancy legislation is strongly oriented towards tenant protection, and residential leases are tightly governed by statute. Landlords who have previously operated in more landlord-friendly environments — whether in parts of Central and Eastern Europe or North America — may find that the level of statutory protection afforded to tenants in Hungary is considerably more robust than they are used to.

Any notice to terminate must be given in writing; a verbal notice to quit carries no legal validity. Either party may terminate an open-ended tenancy in writing at any time, in accordance with the terms set out in the rental agreement. Where the agreement contains no termination provisions, the Lease Act governs the process, and in most circumstances a minimum notice period of 15 days applies. In practice, the majority of contracts specify one month’s notice.

A landlord is generally entitled to terminate the lease when the tenant commits a material breach of its terms. The most commonly cited grounds include persistent failure to pay rent, service charges, or other sums due under the agreement, as well as causing damage to the property or using the premises for a purpose other than that for which they were let.

Removing a tenant who refuses to leave — even where there are clear grounds for termination, such as prolonged non-payment — is rarely straightforward and invariably requires a court order. Eviction may only be enforced once a court has issued a final decision confirming the termination, after which a judicial executor is appointed to carry out the physical removal. This process can extend over many months and, in contested cases, even longer. The importance of including a properly notarised eviction declaration in the tenancy agreement from the outset cannot be overstated.

Only a court-appointed bailiff has the legal authority to execute a forced eviction. Under no circumstances should a landlord attempt to remove a tenant by changing locks or through any other form of self-help. Doing so would expose the landlord to civil and potentially criminal liability under Hungarian law.

What should expat landlords know about managing property remotely in Hungary?

Overseeing a Hungarian rental property from overseas is entirely feasible, but it demands careful attention to legal representation, tax obligations, and the practicalities of day-to-day property management. One point that overseas landlords must grasp from the outset is that the Hungarian legal system requires disputes to be resolved domestically: Act XXVIII of 2017 on Private International Law provides that only a Hungarian court may hear and determine proceedings relating to the lease of immovable property situated in Hungary. A landlord based abroad cannot look to the courts of their home country if a tenancy dispute arises.

Granting a power of attorney (meghatalmazás) to a local solicitor or property manager is therefore strongly advisable. This arrangement authorises a trusted local representative to execute documents, manage correspondence with tenants, oversee repairs and maintenance, and act on your behalf before Hungarian authorities — all without requiring you to travel to Hungary each time a matter needs attention.

For landlords with no intention of residing in Hungary, appointing a professional property management company can bring considerable peace of mind. Such companies take responsibility for tenant relations, organise maintenance and repairs, and ensure the property remains in acceptable condition. When selecting a management company, it is important to verify their professional credentials and to ensure the management agreement sets out all fees and responsibilities with precision.

Regardless of where you live, you are legally required to declare all rental income derived from Hungarian property and to file an annual tax return in Hungary. The standard filing deadline is 20 May of the year following the relevant tax year, with an extended deadline of 20 November available to individuals who notify the Hungarian tax office in advance and can demonstrate a reasonable excuse for being unable to file on time.

There are no general prohibitions on transferring rental income out of Hungary; as an EU member state, Hungary permits broadly unrestricted movement of capital within the EU. However, landlords should factor in the costs of converting income from Hungarian forints and should ensure they understand any double taxation obligations in their country of residence. Consulting the NAV and a qualified Hungarian tax adviser — particularly one with experience advising non-resident property owners — is strongly recommended before and throughout any letting arrangement.

Frequently asked questions

Can a non-resident own and let property in Hungary?

Yes — overseas nationals can own and rent out property in Hungary, though the rules differ according to nationality. Nationals of EU and EEA member states enjoy the same property acquisition rights as Hungarian citizens, whereas nationals of countries outside those groupings must first obtain a property purchase permit from the local government office in whose district the property is situated. Once ownership is in place, non-residents may let the property freely, but must register for a Hungarian tax identification number and submit an annual income tax return covering their rental earnings.

Is a written tenancy agreement legally required in Hungary?

Yes — Section 2(5) of the Housing Act stipulates that a residential tenancy agreement must be in written form to be legally valid. An arrangement not committed to writing has no legal effect. Verbal understandings and email exchanges are not treated as legally binding instruments for this purpose under Hungarian law.

Can I let my property on Airbnb or as a holiday rental in Hungary?

Since January 2025, Hungary has been operating a two-year moratorium on all new short-term rental registrations, meaning no new short-term or private accommodation operations may be registered until 31 December 2026. Short-term lets that were lawfully registered before the moratorium took effect may continue to operate, provided they remain compliant with all existing requirements. For the current position, contact the relevant district notary and the National Tourism Data Centre directly.

How much deposit can a landlord charge in Hungary?

Landlords are entitled to request a security deposit of up to three months’ rent (as of 2025) as a guarantee against the tenant’s obligations. In practice, deposits of two months’ rent are most common. Hungary does not have a government-backed deposit protection scheme; the permitted uses of any deposit must be clearly specified within the tenancy agreement itself.

What is the rental income tax rate for foreign landlords in Hungary?

Rental income in Hungary is subject to a flat rate of 15% personal income tax (as of 2025), which is the same rate applied to wages and business earnings. This rate applies to both Hungarian residents and non-residents alike. Landlords may either deduct actual documented expenses or apply a standard 10% flat-rate deduction against gross rental income before the 15% tax is calculated. Consult the NAV and a local tax professional for current guidance.

Do I need a local agent to let my property in Hungary?

There is no legal obligation to engage a letting agent for residential lettings in Hungary. However, for landlords based outside the country, working with a local agent or property management company is strongly advisable in order to handle tenant sourcing, maintenance coordination, and routine property management. Fee levels vary considerably — in many cases equating to roughly one month’s rent — and should be confirmed directly with the agent concerned.

How long does the eviction process take in Hungary?

Evicting a tenant in Hungary — even where the grounds are clear, such as persistent rent arrears — is rarely swift and always requires a court order. Once a court has issued a final decision confirming the termination, a judicial executor is then engaged to carry out the physical eviction. The entire process can take anything from several months to years. Including a properly notarised eviction declaration in the tenancy agreement from the outset is strongly recommended as a means of reducing potential delays.

Is there rent control in Hungary?

Hungary does not impose any form of rent control, and there is no statutory ceiling on how much landlords may increase the rent. Annual adjustments are common in practice, typically referenced either to the MUICP published by the European Central Bank (for euro-denominated leases) or to the ICP published by the Hungarian Statistical Office (for forint-denominated leases). Any indexation arrangement must be agreed and set out explicitly in the tenancy contract. For current index figures, consult the Hungarian Central Statistical Office (KSH).