Visit our permanent exhibition at our Mullingar office, Monday - Friday 1000 - 1600

Client Testimonials- www.davitteuproperty.com/testimonials.aspx

Rental in Budapest

ManageRent - Our Property Management and Letting agency.

Our property management and letting agency was established exclusively for Sherry FitzGerald Davitt & Davitt clients for renting and managing your property.

ManageRent ensures that the properties of those, who wish to make a return on their investment, are properly managed on their behalf.

The following services are offered to clients:

• Rental of your apartment
• Management of your apartment
• Assisting with furnishing of your apartment
• Technical supervision of your apartment
• Re-sale of your apartment

In the best areas high rents can be expected, but typically realistic rental yield is 5-6%.

For further information, contact Judit Szelevenyi on 00361 877 6200  or by email at managerent@autoker.hu


Mortgages
In Hungary mortgages have only become available in the last year. The mortgages are very difficult to get. Only one in twenty Hungarians can meet the criteria for a mortgage and the mortgages are normally only 10 years. The interest rate is approx 5.5%. For foreign investors it is almost impossible to obtain a mortgage in Hungary for residential properties. However, finance is available for larger commercial properties.

Taxes
There is a double taxation agreement between Hungary and Ireland/UK so that applicable taxes are only paid once.

Capital Gains Tax is 25% of the profit made, which does start to reduce after 5 years of ownership. Income Tax is 20%, but if you are in the higher tax brackets, you will be liable to pay the difference also.

Inheritance Tax - all property/assets will automatically return to your estate.

Purchasing Procedure
When buying an apartment in Budapest, you apply to the Municipality for permission to buy. Up to the present the granting of this permission has been relatively straight forward and since joining the EU this has become a formality. As an individual buying one or two properties this process is very straight-forward. Should you wish to purchase 3 or more, then a Company needs to be set up. Depending on individual circumstances and for tax purposes, it may well be better for an individual to also consider forming a company.

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» GENERAL GUIDE TO COSTS

Costs:
The purchase price of all apartments is in Hungarian Forint and is fixed. Any Euro value is approximate and will vary according to the exchange rate. As a guide we use 250 Forint per Euro.

Instalments will be payable in Hungarian Forint when construction milestones have been reached and will therefore be applied to each building based on specific progress.

A limited number of car parking and storage spaces are available in each development and can be purchased separately.

Purchase price. We do not charge any fees or commission. There are NO additional costs added to the actual purchase price of apartments.

Legal fees. Normally, legal fees are 1.5% of the purchase price, however, we have negotiated a rate of just 1% with a legal firm in Budapest.

Stamp Duty. There is no stamp duty on new property priced below 15 million Forint (approx €60,000).

6% is applied to the difference over 15million forint and below 30million forint. 

Property over 30million forint attracts 6% of the full purchase price. 6% is also charged on all second-hand property. 10% is applied to car park spaces.

Permit Fee. To purchase an apartment in Hungary, a Permit must be obtained from the local authority which costs €250 and is payable to your solicitor when application is made.

N.B. This is meant as a guide and forms no part of the actual sales contract.

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» WHY INVEST IN BUDAPEST WITH...

SHERRY FITZGERALD DAVITT & DAVITT

- 7 years experience selling property in Budpest
- No buyers fees or Agents commissions
- Bank Guarantees on our properties
- Deposit refundable
- We sell for Autoker the largest builder in Budapest
- Part of the Sherry Fitzgerald Countrywide Group
- 25 years Auctioneering experience (we’ll be here next year the same as last year!)