Featured Property

This is a 91m2, three bedroom, classic apartment at the foot of Margit Bridge in Pest’s mainly residential, though still central, 13th district. The building features elevator, a well-maintained stairwell and a great view to the Buda Hills, taking in the Danube, the Margit Bridge and Margit Island. Public transport and a small park are both on the doorstep. Spacious layout, with rooms reached from a central hallway, given the wonderful location and the quality of the building, offers outstanding potential. Rooms are large, and retain all original parquet flooring, doors and windows.Currently is operating as an office. Ready to move in. Because of its location its good opportunity.

Price: HUF 35 000 000

Price: EUR 129 000 circa

Area: 91 m²

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INVESTOR CENTER Purchase Guide

7 Steps of Purchasing Property

Step 4 - Individual vs. Corporate Ownership

Have all documents ready! Take advantage of the option most tailored to your needs!

After you have selected a particular property and the offer has been accepted the next issue to decide is whether you wish to purchase the property as a legal entity (company) or as an individual. Look at the conditions below on what it takes to purchase a property either way:

 

 

	Corporate	Individual
Restriction on the number of properties	None	Usually a maximum of two properties can be purchased by one person.
Start-up Costs	Limited Liability Company (Kft.): ... EUR 1.750, incl. VAT and lawyer’s fees Partnership (Bt.): EUR 900, incl. VAT and lawyer’s fees	125.000 HUF for the application to the “Administrative Office of Budapest”. Plus 50.000 HUF Stamp Duty
Stamp duty	2% is sold within 2 years 6% if sold after 2 years	6%
Permission	No permission required	Approval of the “ Budapest Municipality”. The procedure can sometimes take up to 2 months.
number of properties	No restriction	Permission usually granted for one apartment.
On-going costs	approximately €700 per year for accounting
Cost of Selling	If existing corporation sells the property: 16% corporate tax on profits Capital gains tax on profits If company is sold: No capital gains for seller No stamp duty for purchaser	Capital gains tax on profits
Advantages	Expenses are tax-deductible VAT can be reclaimed If renting out the property: company can invoice tenant	No accountant necessary
Disadvantages	Fixed costs on maintaining your corporation	If Budapest Municipality denies the permit to purchase client will have to set up a company

 

[Click here for specific information on Tax and Legal procedure]

 

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Q & A Questions & Answers

Q: What is the average price of rental apartments per m2 in central districts?

Renting out your property is not so easy, unless you are aware of the local market trends in the capital. In central districts you can rent out a property in the range of € 400-500 and more depending on whether you rent out the property to individual or a company. Both have associated cost, and both offer a different return we will be happy to show you once we get there.

Q: Shall I purchase the property, as an individual or through a corporation?

Whether you buy as an individual or through a corporation, your focus shall be on the return you get on your investment, and the costs associated with the purchase and maintenance. Always make clear the preferences you have, when acquiring the property. Buying through a corporation can give you an advantage when validating costs associated with the property, while buying as an individual will keep maintenance and purchasing-associated costs lower.

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contact information

1065 Budapest, Hungary
Bajcsy-Zsilinszky út 5.

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Tel: +36 (1) 219 5505
Tel: +44 (0) 20 8144 9505 (U.K.)
Fax:+36 (1) 219 5504

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