Buying a flat, house and building plot in Hungary: what a Slovak buyer must watch out for

A Slovak citizen as well as a Slovak company acquire flats, houses and building plots in Hungary under the same conditions as Hungarian buyers and do not need a permit. Hungarian law, however, contains several institutions unknown to Slovak law: since 1 July 2025 a statutory right of first refusal of the municipality and neighbours against buyers who do not live in the municipality, a different relationship between building and land, and an agricultural-land regime that may also apply to the garden of a family house. In this article we set out an overview of these differences and practical recommendations before signing the contract.

1. Who may acquire the real estate

Slovak law is among the most liberal in the region. A foreigner may acquire any real estate in Slovakia except those whose acquisition is restricted by a special regulation (§ 19a of Act No 202/1995 Coll. – the Foreign Exchange Act). For flats, houses and built-up plots no such restriction exists, not even for buyers from countries outside the European Union.

Hungarian Act No LXXVIII/1993 (Lakástv.) does require a permit for acquiring real estate (§ 1/A), but only from a „foreigner“, i.e. a person from a country outside the EU and the European Economic Area (§ 91/A points 24 and 25 Lakástv.). A Slovak citizen and a Slovak s. r. o. (limited liability company) therefore buy in Hungary without a permit, under the same conditions as Hungarian buyers.

A buyer from a third country – for example a citizen of Ukraine or Serbia, even one with residence in Slovakia – conversely does need a permit from the government office in Hungary. We discuss the permit procedure under Government Decree 251/2014. (X. 2.) Korm. rendelet in detail in a separate article on the purchase of real estate by a person from a third country.

2. The municipality's and neighbours' right of first refusal under the Act on the protection of local identity

Since 1 July 2025, Act No XLVIII/2025 on the protection of local identity (Hövtv.) has been in force in Hungary. It allows a municipality to introduce, by decree, a right of first refusal on the sale of real estate to an „incomer“ (betelepülő), being a natural person without real estate, domicile or temporary residence in the municipality [§ 3(a) Hövtv.]. What is decisive is the buyer's relationship to the municipality, not their citizenship – the Act therefore applies to a Slovak buyer just as it does to a Hungarian buyer from another town.

Material scope

The right of first refusal covers all real estate except agricultural and forest land; allotment-garden settlements (zártkert), however, fall within its scope. Also excluded are plots subject to a building moratorium in the past ten years and real estate created from a right to build [§ 3(c) and (h) Hövtv.]. The right of first refusal applies only to a purchase contract, not to a gift or an exchange [§ 3(d) Hövtv.].

Entitled persons and their order

The right of first refusal may be exercised in the following order: the municipality or its commercial company, the owner of a neighbouring plot, and the owner of other real estate in the municipality (§ 8(1) Hövtv.). Private holders of the right must have owned their real estate for at least five years (§ 8(4)). They all take precedence over holders of first-refusal rights under other regulations, including co-owners (§ 8(2)).

Procedure and consequences of a breach

Within 8 days of signing, the purchase contract is delivered to the head of the municipal office (jegyző), who notifies the entitled persons. They have a preclusive period of 30 days to exercise the right of first refusal (§ 9(1) and (3) Hövtv.). A purchase concluded in breach of the Act is absolutely void (semmis, § 21(1) Hövtv.).

Exemptions and related restrictions

The Act exempts from its scope, among others, relatives of local residents, persons originating from the municipality, and persons moving to the municipality for work (§ 6(1) Hövtv.); the municipality may widen the range of exemptions. In addition to the right of first refusal, the municipality may also restrict residence registration or make it conditional on a contribution (§ 10 and 11 Hövtv.). When buying a house to live in, it is therefore also necessary to verify whether the buyer will be able to register residence in the municipality.

Temporal scope

The Act does not apply if, before 1 July 2025, an application for registration was filed or a contract or a contract for a future contract was concluded and a deposit, advance or part of the purchase price was paid (§ 24 Hövtv.).

3. Co-owners' right of first refusal and apartment buildings

In both countries, fractional co-owners have a statutory right of first refusal on the transfer of a share to a third party – in Slovakia under § 140 of the Civil Code, in Hungary under § 5:81 Ptk. For a flat in a Hungarian apartment building (társasház), the founding deed (alapító okirat) must also be checked, as it may provide for a right of first refusal of the other flat owners.

4. Building and land: one thing, or two

Under Slovak law, a building is not part of the land (§ 120(2) of the Civil Code). The house and the land beneath it may have different owners, and the purchase contract must expressly cover both, including securing access.

In Hungary, a building is generally part of the land and shares its legal fate. An exception is a separate building (önálló épület), which, with the consent of the landowner, is registered as separate real estate (§ 5:18 Ptk.). When buying a family house, it is therefore necessary to verify from the title deed whether the building is not carved out and the land does not belong to another person.

5. A garden by the house and the agricultural-land regime

In Slovakia, Act No 140/2014 Coll. on the acquisition of ownership of agricultural land does not apply to gardens or to plots in a municipality's built-up area [§ 2(2)(a) and (b)]. Moreover, its offer regime has not applied since 11 February 2019, as it was annulled by the Constitutional Court of the Slovak Republic by ruling No PL. ÚS 20/2014.

Hungarian Act No CXXII/2013 on transactions in agricultural and forest land (Fftv.) is based on the entry in the register, not on the location of the plot. If the title deed (tulajdoni lap) records even part of the plot as a garden (kert), arable land or orchard, the Act applies to the whole plot, even within the built-up area (§ 4 and § 5 point 17 Fftv.).

6. Form of the contract and transfer costs

In Hungary, the purchase contract is in practice always prepared by an attorney, who countersigns it (ellenjegyzés); without the countersignature the land-registry authority will not register the entry (§ 35(2) Inytv.). The buyer pays the real-estate transfer duty (visszterhes vagyonátruházási illeték) at the general rate of 4 % of the market value.

In Slovakia, representation by an attorney is voluntary and there is no real-estate transfer tax; only the administrative fee for the registration application is paid.

7. Comparison at a glance

8. Recommendations before signing a contract in Hungary

• Request a current title deed and verify the land type including all its parts.
• Check whether the municipality has adopted a decree under the Hövtv. and, if so, whether the buyer is covered by one of the exemptions.
• If the right of first refusal applies, allow for an extra 30 days and do not release the purchase price or the deposit (foglaló) before the period expires.
• If the buyer is to live in the municipality, also check the restrictions on residence registration.
• For a family house, verify whether the building is not separate real estate with a different landowner.