Q: Can foreigners buy property in Budapest?

A: Yes. One can either establish a company (partnership), or apply for a permit as a private person. The former costs about 500 USD to set up and an annual 200 USD to run, whereas the latter is a smooth process if one does not already own apartments in the district.

The advantage of buying property through establishing a company is that all costs relating to the apartment can be recognized as expenses, including flight, accommodation, legal & agency fees, stamp duty, renovation costs, furniture, and services.

A: Around 10%. This includes 6% stamp duty, 1.5% solicitor's fee, and 3.5% estate agent's commission.

A: Yes. Personal income tax is 20% of the sales price (not when apartment is owned by a company). In case of residential property, if the seller buys another residential property within 4 years he/she is entitled to reclaim the paid tax, in proportion to the difference between the buying and selling price of the residential property. Corporate tax is 18%.

A: Around 500 USD, depending on the type of partnership. In case of a limited liability company a monthly fee of 80 USD is necessary for accounting and tax purposes. A small partnership costs around 200 USD annually.

A: Small renovated fully furnished apartments in central areas.

A: 400 USD for a small 40-60 sqm flat. 600 USD for a larger two-bedroom apartment. You can expect a 7-9% rental yield, that is a complete capital return in 11-13 years.

A: 20% of the rental income when renting a residential or commercial property to an individual or a business. Foreign nationals must apply for a tax ID and issue an invoice to tenant. Companies only pay the 18% corporate tax on profits.

A: 10-15% of the monthly rent.

A: One month's rent plus 25% VAT paid upon signing the contract in case the apartment is rented for a year.

A: 8-9% Some banks would say 10%.