HUNGARY Law and Practice Contributed by: Attila Ungár and Júlia Várkonyi, Lakatos, Köves & Partners
There is a housing development programme in place to promote the renewal of neglected urban rust areas by encouraging development in these areas. Rust pro - jects are classed as “priority investments in the public interest”, which speeds up and simplifies the process of obtaining the necessary permits. The Hungar - ian government continuously determines rust areas, which are mostly (but not exclusively) located in Buda - pest. In February 2024, a new change of control rule was introduced. Accordingly, if there is a change in the direct or indirect majority ownership of a real property qualifying as a rust area after it was designated as such, the property in question shall lose its rust area status, which may result in severe fines for the owners. An act regulating ESG requirements (Act CVIII of 2023) came into force on 1 January 2024, setting out ESG reporting obligations for so-called “public interest entities” and certain large companies registered in Hungary; fines for non-compliance with such obliga - tions shall only be due as of 2026. The “Golden Visa” was introduced on 1 July 2024, meaning that non-EU and non-EEA citizens and their family members may acquire a “guest investor visa” in Hungary for ten years by investing in bonds issued by certain real estate funds in the amount of EUR250,000. At this stage, only a limited number of investment products are in place. A new law on the protection of local self-identity came into effect in the summer of 2025, according to which local municipalities may impose restrictions on the purchase of real estate within their territory, such as: • pre-emption rights in the case of a sale and purchase for the benefit of the municipality, its majority-owned business entity, or certain local inhabitants; • prohibition or restriction of establishing residence; or • requesting residential contribution from persons wishing to establish a residence. To date, more than 100 municipalities have made use of this possibility, with the district municipality in Budapest being among them.
As a response to the housing crisis, a moratorium on the right to rent private accommodation for short-term stay (eg, Airbnb) was introduced in Budapest until the end of 2026. The 6th district of Budapest even intro - duced such a moratorium for an indefinite period, and discussions on regulating short-term accommodation are taking place in other districts as well. Hungary introduced a special “Plaza Stop” restriction in 2020, and this was expanded by an amendment that entered into force in September 2025: the scope of this special authorisation requiring authorisation from the Hajdú-Bihar County Government Office – among others – was extended to cover granting of use (ie, leasing) of certain commercial buildings over 400 square metres in area, or parts thereof, where the purpose of the transaction is the establishment of a store selling everyday consumer items. Property rights range from full ownership to contractu - al usage rights. Most property rights can be registered in the land registry. Some rights (such as ownership) are established by registration, whereas others (such as pre-emption rights or options) are valid irrespec - tive thereof. 2.2 Laws Applicable to Transfer of Title The rules for the transfer of title are contained in the Hungarian Civil Code, the Act on Real Estate Registra - tion (Act C of 2021) and the law on the implementation of the Act on Real Estate Registration (Government Decree No 179/2023 (V 15)). Specific rules exist for the transfer of agricultural and forestry lands (Act CXXII of 2013 and Act CCXII of 2013). 2.3 Effecting Lawful and Proper Transfer of Title Title may be transferred by virtue of law (eg, inherit - ance), by an agreement (eg, sale and purchase agree - ment) or by court judgment (eg, litigation by adverse possession). 2. Sale and Purchase 2.1 Categories of Property Rights Owing to the stability of the Hungarian land registry system and the limited opportunities to challenge
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