To buy a house in Hungary, an American must secure a mortgage from a Hungarian bank, typically requiring a down payment of 20-30%, proof of income, and a valid passport. They should work with a licensed real estate agent to search for properties, as most listings are not publicly available. Legal steps include verifying property ownership, checking for liens, and signing a purchase agreement in Hungarian. Notarized documents and a 1-2% notary fee (plus stamp duty) are mandatory. Property taxes range from 4-5% annually, depending on location. The buyer must also pay a 1-3% transfer tax and a 20% VAT if purchasing new construction.

Hungary’s real estate market is influenced by low interest rates (3.25% as of 2023) and stable inflation (2.1% in 2023), according to the Hungarian National Bank. Notary fees and taxes account for 3-7% of total costs, making Hungary cheaper than Germany (5-8%) or Italy (6-10%), per JLL’s 2023 European Property Guide. Language barriers persist, as 90% of legal documents require Hungarian, and only 15% of Americans speak the language fluently, per the European Commission’s 2022 survey. This necessitates hiring a bilingual lawyer or notary, adding 2-5% to expenses. Additionally, foreign ownership of agricultural land is restricted, and urban properties require a 1-year residency permit. These factors explain the rising demand for professional intermediaries, with 70% of foreign buyers in 2023 relying on local agencies, per Hungary’s Central Statistical Office. The process is efficient compared to France (6-12 months) but demands meticulous compliance with local regulations.