Buying a new-build apartment in Hungary: the process step by step

Buying a new-build apartment in Hungary typically involves five stages: due diligence, a deposit and a sale contract countersigned by a lawyer, staged payments during construction, handover and the official occupancy approval, and finally registration of your title in the land registry and settlement of transfer duty. This article is general information, not legal advice.

How does a new-build purchase differ from a resale?

The main difference is that you are paying for a property that may still exist only on plans or as a construction site. The contract therefore needs to fix the specification, the deadlines and the payment schedule, not just the price.

The second difference is the condominium structure. In a multi-unit building, each apartment becomes a separately owned property, while shared areas remain in common ownership. The framework for this is the condominium’s deed of foundation (társasházi alapító okirat).

What are the steps to buying a new-build apartment in Hungary?

The order varies slightly between projects, but most purchases follow this outline.

1. Due diligence – review permits, the title deed, the condominium documents and the specification, ideally with your own lawyer.
2. Deposit or preliminary agreement – both parties commit; the amount and legal nature of the deposit are written into the contract.
3. Sale and purchase contract – in writing and countersigned by a lawyer; it defines the unit, the specification, the payment schedule and handover conditions.
4. Staged payments – the price is paid in instalments linked to milestones or fixed dates.
5. Handover and occupancy approval – inspection of the finished apartment, a snagging list, then the building’s official occupancy procedure.
6. Title registration and duty – registration with the land registry authority, plus declaration and payment of property transfer duty.

How does a deposit (foglaló) work under Hungarian law?

A foglaló is a deposit paid as a sign that the contract has been concluded, and it is credited against the price if the sale completes. It is governed by section 6:185 of the Hungarian Civil Code and carries firmer consequences than an ordinary advance payment (előleg).

• If the sale falls through because of the buyer, the buyer loses the deposit.
• If the seller is responsible, the seller must repay double the deposit.
• If neither party, or both, are responsible, the deposit is returned.
• A court may reduce an excessive deposit; around 10% of the price is generally regarded as customary.

A payment only counts as a foglaló if the contract expressly calls it one. An előleg, by contrast, is refundable if the contract fails, regardless of who is at fault.

Why must a lawyer countersign the contract?

Because ownership is registered on the basis of a public deed or a private document countersigned by a Hungarian lawyer (or chamber-registered in-house counsel). This is required by section 35 of Act C of 2021 on the land registry.

The same act makes legal representation mandatory in registration proceedings, and applications must be filed electronically. Hungary’s electronic land registry system went live in early 2025; it is prudent to allow some leeway on registration timing.

In practice, the countersigning lawyer drafts or finalises the contract, verifies the parties’ identity and files the registration application. For HillGate, a lawyer prepares the sale; buyers may also appoint their own independent counsel.

How do staged payments protect the buyer?

With staged payments, the price falls due in instalments tied to construction progress or to fixed dates. Where payment is spread out, the contract normally also addresses how the buyer’s future ownership is secured until the final instalment.

Two established techniques exist: retention of title, where the seller remains the owner until the price is paid in full, and holding the buyer’s registration in abeyance. They offer different levels of protection, and mortgage lenders may require one or the other; your lawyer can advise which suits your case.

HillGate apartments can also be bought on a 60:40 structure: 60% paid by the buyer, with the remaining 40% in 60 monthly instalments from 2027 at 5% interest. Terms are subject to individual agreement; details are in the investment package.

What is the occupancy permit, or occupancy acknowledgement?

The occupancy procedure is the official step after which a completed building may be used for its intended purpose. Depending on the type of building, the building authority either acknowledges the occupancy notice (tudomásulvétel) or issues an occupancy permit (használatbavételi engedély).

In 2026 this is governed by Act C of 2023 on Hungarian architecture and Government Decree 281/2024 (IX. 30.). The procedure typically requires, among other things, a statement from the contractor and an energy performance certificate; the exact document list is assembled by the project’s architect and contractor.

This matters to buyers because recording the completed building in the land registry, and with it the final registration of your apartment, is normally tied to this step. It is worth asking which procedure applies to the project and when it is expected to close.

Technical handover

At handover you compare the finished apartment against the specification in your contract. Any defects are best recorded in a signed protocol with deadlines for remedy. An independent surveyor can be valuable here.

When and how is ownership registered?

Ownership is entered by the land registry authority on the basis of an application filed electronically by your legal representative. For a new apartment in a condominium, the condominium and its individual units must first be recorded in the land registry.

Under Act CXXXIII of 2003 on condominiums, establishing a condominium requires its registration in the land registry. A condominium can be established in advance for a building yet to be built, with final registration following completion.

How much property transfer duty is payable?

The standard rate of transfer duty on real estate in Hungary is 4% of market value. Under Act XCIII of 1990 on duties, 2% applies to the portion above HUF 1 billion, and the duty is capped at HUF 200 million per property.

Where a new apartment’s market value exceeds HUF 30 million, the new-build relief does not apply and the standard rules govern the calculation. VAT is a separate matter: HillGate prices include 27% VAT, which a company buyer may be able to reclaim – this should be confirmed with a tax adviser.

Due diligence: what should you check before signing?

The aim of due diligence is to surface anything that could affect the apartment’s value or use before you commit. For a new-build, review the following with your lawyer.

Document	What to look for
Title deed (tulajdoni lap)	Who owns the plot; any mortgages, easements or other charges.
Building permit and plans	Whether the permitted building matches the contract; the size of the unit and its terrace, storage and parking.
Condominium deed of foundation	The boundary between private and common property, ownership shares and the list of shared areas.
Condominium rules (SZMSZ)	How service charges are shared, how decisions are taken, and any rules on short-term letting.
Specification	Building services, glazing, finishes, metering – what is included and what costs extra.
Management agreement	For a rental apartment: fees, reporting, owner-use rules and termination.

For an investment apartment, the management agreement matters as much as the sale contract. At HillGate the developer remains on site as operator after handover; our article on full-service short-term rental management explains what that involves, and the regulatory side is covered in short-term rental rules in Hungary.

Can foreign buyers or companies purchase?

Yes. HillGate apartments can be bought by individuals or companies, including from abroad. The additional steps for non-Hungarian buyers, such as permits and a tax number, are covered in buying property in Hungary as a foreigner.

Rules change, and individual circumstances – tax residence, financing, buying personally or through a company – shape the right structure. Always take advice from a Hungarian lawyer and a tax adviser before making a decision.

Frequently asked questions

Do I get my deposit back if I change my mind?

No. If the sale fails because of the buyer, the seller keeps the foglaló. If the seller is at fault, they must repay double; if neither party is responsible, the deposit is returned.

Do I need a lawyer to buy property in Hungary?

In practice, yes. Registering ownership requires a public deed or a contract countersigned by a Hungarian lawyer, and legal representation is mandatory in land registry proceedings.

How much transfer duty applies to a new apartment above HUF 30 million?

Generally 4% of market value, because the new-build relief does not apply above HUF 30 million. Other reliefs, such as the home replacement rule for individuals, may apply in specific circumstances.

When will I appear on the title deed?

For a new-build apartment, final registration usually follows the occupancy procedure and the recording of the condominium in the land registry. With staged payments, the contract sets out how your position is secured in the meantime.

What should I check in a management agreement?

The basis of the fees, what the monthly owner statement contains, the rules on owner stays and the termination terms. These determine how much of the revenue you keep and how flexibly you can use the apartment.