Letter from Hungary - News by Magyar Kúria

Dear friends of Hungary,

First of all we would like to once again to say you our best wishes for the year that just begun!

The year starts well!

Hungary is taking a step that many have long waited for: the VAT is lowered. Now Hungary is no longer top in the EU in this meaning. Of course, we will give full savings to our customers and we have, therefore we recalculated the VAT on all our prices. All of our commissions, services and of course construction are now cheaper for the consumer. Prices on the Web site have been restated. Hungary is now even cheaper than before!

Only for completeness: of course the VAT reduction does not affect the nets prices for business customers, according to Hungarian law of VAT (partly) liberated benefits.

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Büssü, Büssü and no end?

In the last edition of our newsletter, we have explained the reasons why we have withdrawn from Büssü business. Our original statement was: " In the past year, there were in the 2004 by us in the one way or another supported properties 11 slump thefts or simple thefts and one further slump thwarted thankfully by a watchful neighbour with a sharp dog. ... All events of crime were committed in the community Büssü and none of them in the out of Büssü supervised homes." The owners of the house, whose neighbour looked after and proved this good neighbourly service, do not agree, although they spent the mentioned date in Germany. To satisfy this assessment we do hereby quote without recognising any legal obligation the owners of this house with the following statement:

„If a neighbour wants to make himself important, it does not mean a situation of a thwarted burglary."

We would like at this point no substantive assessment of this statement. But seen the fact that there is no change in general situation our attitude towards Büssü and its administration do not even let us utterances from circles of the municipal administration with the threat of legal action against our company by not mentioning these unpleasant facts hold. Whether 11 or 12 crimes against our customer took place, in the overall assessment of the situation it does not matter, since 2005 the series of crimes in Büssü did not end. Still need to recognise Büssü as a very insecure place. While it is not forbidden to sell in a community like Büssü houses, we don't want to do it due to our business believes.

Do we have anything against Büssü? No, it is at first glance, the beautifully bound on the scale of transit road is a village with a lot of flair, even the beautiful landscape. Of course, it is always possible that one will be victim of a crime always and everywhere. Unfortunately this belongs to the general risks of life. However, in Büssü it is unfortunately one of the regular events in life, and since the Hungarian television reported about the unbearable conditions in Büssü it is absolutely no secret that life there certainly is not worth living. On 24 September 2005, a report aired, that tried to light the backgrounds of these states and there was ultimately no one in a responsible position who was able or wanted to intervene, according to its own statement.

Hungary is such a beautiful country, a safe country, more than for example, Germany - and the foreign visitors and residents are welcome in the country. There is so much more than just the community Büssü and therefore no one need to care especially for investments. However it is always advisable to take general precautions whenever and wherever. We hope very much that we are able to close the chapter Büssü finally now.

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Residence permit-important innovation

In last spring, we reported about the issue of residence permits. Since then there has been a change for the people who immigrate to Hungary based on assets. As an appropriate asset since this summer, a total of 1,000,000 HUF (approximately 4,000 €) is needed per person. This means showing bank statements of the last six months. In fact, the six-month-criteria has no significant role. For everyone who has a regular income (e.g., workers, pensioners, owner of Hungarian companies, family reunification or students), nothing has changed.

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Working permit

Now on the subject of a working permit. Hungary is in the EU, but still a working permit for every foreigner is required. The economy is running assault against this provision, but the Hungarian self-awareness is offended. Hungarians who want to work in the old 15 member states of the EU normally need a working permit, and that's why the Hungary also regulated the Hungarian labour market. All old EU states have their own rate found between 0 (e.g. Germany), and unrestricted (e.g. United Kingdom). Exact this rate applies in Hungary beginning on Germans (0) and British (unrestricted).

But there are many exceptions. First of all entrepreneurs are free to opened a company in Hungary and do not require a working permit. Businessmen and self-employed entrepreneurs are the same according to this regulation. Furthermore workers may be sent to Hungary without working permit. To do so, these workers already have to be employed by the same employer before.

If none of the exemptions is suitable, the way through the instances has to be gone - and this can be long, especially if the quota is exhausted. However, it is the prospective employer, who has to apply for the working permit, and thus a description of the bureaucratic circumstances at this point is not necessary. We want to wish everyone trying to live in Hungary this way success.

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Large landowners in Hungary

Hungary is big and has large landscapes, so there are also large estates and big house plots. The definition of a large landowner is elastic, some people will think a plot of 1.000 m² is large, for others it will need several hectares.

A residential plot in a village is normally regardless of the size acquirable by a foreigner. The limitation of 6,000 m², often in the minds of the people, is a restriction in a very specific exception, but since then not even the only one. This limitation applies only to external situation, namely if a house is built on agricultural land (the so-called tanyas). And this is also the only agricultural land, which a foreigner without major obstacles may acquire, but also for example without an existing family house is needed, not even a building permit is enough.

Thus, we are already in the middle of the issue on agricultural land. It should not come as a surprise that the agricultural lands are often also the largest. Since it is already more of a novelty that vineyards, fishing lakes, or allotments are under the legal term agricultural land. And for everything applies generally: foreigners may lease such land, but not buy it. It is certain that this provision is not abolished before 2011 but in 2014 it must be, as far as a result of Hungary's accession negotiations with the EU.

Only two exceptions the Hungarian law knows. About the tanyas, we already have spoken. The other exception allows foreigners equality with Hungary. But the foreigners must have been established as farmer in Hungary at least for three years. Therefore you need an enterprise with main agricultural operation and a corresponding residence permit. Then, and only then the foreigners can buy the fields or forests, which are since some time regularly offered for sale. As already mentioned lease is the alternative for these plots. These contracts are legally binding and can accommodate up to 20-year maturity. Until then, buying anyway will be allowed.

Often also Hungarians are offered who buy agricultural on their name and give it to the foreigners. Only there is no security in this case except that one: the foreign buyer commits a crime and is on top possible victim of blackmail! The option to found a Hungarian company for owning of the agricultural land is a useless fantasy, this company that may not even buy the land, if only Hungarian citizens would be involved in it.

But perhaps you will find a village house with a very beautiful 9.357 m² plot and so you can quite easily and perfectly legal feel as a large landowner - and according to Western ideas, you are indeed!

Your partner as legal real estate agency, for all your investments and vacations in southern Transdanubia, the sunny thermal and holiday region of Hungary

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Note: after publication of this newsletter the information is no longer checked onto the actuality. So the information can be aged! We ask you for your comprehension.




Magyar Kúria Real Estate Limited with office in Várong, nearby the thermal bath of Igal in Hungary, looks at herself not as real estate agent only, but mostly as service enterprise around the subject real estate, it doesn't matter whether used or for construction of your house or vacation-home, on your own or a by us purchased property, as a vacation-house, or for living there. On behalf a house in the tourist centres, as for example Siófok at Lake Balaton we can offer you your own farmhouse in a for village tourism interesting settlements, or just a townhouse in Kaposvár, Pécs or other towns. We will help you with your cure or vacation and also if you plan to invest between Balaton and Drava, we work for you in the komitats Somogy, Tolna and Baranya. For all questions you can contact our customers service.