Starting from July 1, 2025, Hungary plans to impose restrictions on the purchase of real estate by foreigners.

New legislation aimed at restricting foreign citizens' access to purchase real estate may come into force in Hungary from mid-2025. Parliament is considering a bill proposed by the ruling FIDESZ party that will empower local governments with new market regulation tools.

What is changing for foreigners?

The bill includes a number of initiatives that could seriously complicate the purchase of housing by non-residents. The proposed changes include:

• Local bans on transactions — municipalities will be allowed to independently set restrictions on the sale of objects to foreign buyers.
• A priority for the state and local authorities is that the authorities will be able to buy real estate before it is registered by a foreigner.
• Additional procedures and checks — new conditions may appear for foreign buyers, including requirements for sources of financing.
• Fiscal measures — it is possible to introduce increased taxes and fees specifically for foreign investors.
• Registration control — registration at the place of residence in the purchased apartment or house will require an official permit.

Where will the changes be particularly sensitive?

Areas with high demand from foreigners may be affected the most by the new rules. We are talking about tourist areas and resort towns such as Heviz, where the share of foreign owners is constantly growing. Budapest, the center of business activity and an attractive market for housing investments, will also be under attack.

Here, the authorities can impose increased taxes on transactions in order to curb speculative price increases and direct additional funds to the budget.

Are adjustments to the law possible?

Tibor Navracic, the minister responsible for regional development, said that the most controversial points of the document could be changed or deleted. This applies, in particular, to the provision on a complete ban on transactions for foreigners. The issue will still be discussed with the public and experts.

What about the residence permit programs?

By the end of 2024, foreigners could obtain a Hungarian residence permit when buying property worth 500 thousand euros or more. However, this option is no longer available. In 2025, investors can apply for a residence permit only through state funds or charitable contributions — and these mechanisms are closed, including for citizens of the Russian Federation.

Results

If the new law is adopted in its current form, it will become much more difficult for foreign investors to buy real estate in Hungary. This will be especially reflected in popular locations where competition for housing is high. The purpose of the changes is to reduce pressure on the market, maintain housing affordability for Hungarians and limit the impact of foreign capital on the value of real estate.