Letter from Hungary - News by Magyar Kúria

Easier over the borders

All travellers coming to Hungary will feel a change within several months. From December 21st 2007 the land-borders to all the other EU states except Romania will be opened completely, because Hungary will join the Schengen group. The border control at the airports will be abolished in March 2008 for all flights from Schengen countries - that means there will be no change for flights from the UK. Most visual change will be that you needn't show your documents at the border. But also everyone with Schengen visa and foreigners with a nationality from outside the EU and a residential permit of another Schengen country can travel to Hungary without any limit, because those documents will be valid in Hungary as well.

Also the residential permit for all persons with an EU nationality is abolished (this includes the UK). According to an EU regulation Hungary may handout a special identity card with the pretty name "registration certificate". On behalf the dates the Hungarian community collects from the own people as well you have to declare why you want to stay in Hungary (four options as multiple choice question), to declare whether you live in your own home or you may use it because of renting or comparable situation. You have to declare whether you are member of the National Hungarian Health Insurance (nowadays no is a legal choice as well) and whether you have a public noticeable disease. Further you need a valid passport or identity card, a photo and tax-stamps for paying the registration certificate. Other documents the Hungarian State mustn't ask for. The European regulation 2005/28/EG determines the bureaucratic equality of European and Hungarian citizens. This would mean the same authority that is responsible for Hungarian identity cards should make the registration certificate, but Hungary obeys foreigners to go for it to the foreigner's police. Hungarians receive their papers in the communal offices in the district towns. If this will be the final situation is not sure, because the European authorities improve the national regulations for permit-free resident. Same as Hungarians you have to go to the mayor's office in your village or town to register to your address. The right of resident can be limited only when the public order and public safety will be disturbed heavily, the public health would be in danger and when the European citizen would need social welfare assistance permanently for living in Hungary. The first two reasons to disallow the permanent stay have to be very massive, so in the practice the risk of financial problems will be the biggest one.

After five years of official stay in Hungary you will receive the right of permanent settlement and this means practically the same as the rights the Hungarian nationality give - on behalf the right to participate in the national and provincial elections. This right of permanent settlement only can be revoked when you stay permanently (at least two years) in another country, but also here there are exceptions made.

The form for applying the residential certificate you can get not only at the foreigner's police, but also in our office and we also send it to you by e-mail, just write to ourcustomer's service.

Health Insurance

For everybody living in EU and permanently outside of Hungary it is very easy: your insurance have to hand out an European health insurance card and this is valid in Hungary as well. Because old insurance cards are only changed in the normal terms of validity it is possible that you didn't receive the new card yet, your insurance can give you a provisory declaration in this case as well. In all cases the patient gets the care as everybody in Hungary.

Who permanently stays in Hungary has some more paper work. At the beginning there are two possibilities: insurance in the home country and insurance in Hungary. Only who is working in Hungary (both, for a Hungarian employer and for his own company) is required to be insured in Hungary. Only employees sent out to Hungary by their employers are to be insured according to the law of the land where the company is settled.

Who wants to keep his old police at the foreign insurance should first inform about the possibilities this insurance can offer. It can be that from the insurer of your home country the Hungarian health insurance will be paid. If these ways are the best has to be calculated.

The alternative is becoming member of the National Hungarian Heath Insurance. Here is only one with an office in every county, where you have to register. Here we have the difference between working people and those persons living in Hungary for another reason. Working people always have to be insured by their employer, also when these are self-employed. The costs are depending on the wages in this case. Who doesn't work has the right to join the insurance. First step needed is the registration in Hungary and the registration at the local community office (see above "Easier over the borders"). With the card handed out there you have to go to the tax office. Here you will apply for a fiscal number and you also will apply for becoming member of the National Health Insurance. This at the first moment unbelievable place to do has a reason: the tax office collects the money for the insurance. Together with the papers you will be handed out you still need to visit the regional office of the health insurance to apply for the insurance card. The monthly costs for the insurance are about 20,- £.

With the papers you received by the tax office you can go to the office of the health insurance and apply for the health card, which is needed to receive health care. Whose Hungarian insurance is paid by an insurer of the home country needn't to visit the tax office and can go to the office of the National Health Insurance immediately.

What is the best solution? Everybody working in Hungary has no choice, also when you have to be insured in your home country by law it is easy to determine. Who needs care in Hungary always receives the care according to the Hungarian rules, no matter of the kind of insurance or the place of residence. Outside of Hungary it is inside all EU countries again according to the national law. So it's just a calculation of prices as long you are free to make a choice.

2007 - a summer in Hungary

Just in the opposite of the rainy summer in Western Europe Hungary had long terms of dry heat, only in-between we had heavy thunderstorms. On behalf the rainy period end June until the beginning of July the country suffered under the dryness. The hottest day ever in Hungary was measured this year at a meteorological station in the Puszta, in the south of Budapest. But against all rumours and forecasts of self-named experts Lake Balaton is at a high water level and the quality of the water is very good. It's a pity that Hungary still suffers under the former choice to be a cheap vacation destination only, instead of using it's natural beauty. At this moment mostly Hungarians fill-up the places left free especially by German tourists.

Pre-payment or advance?

The Hungarian law knows two very differing methods with quite similar names. An advance is nothing else than an early payment for buying something or for some work. Early means in this case before anything has been handed out or has been done. As the contract doesn't goods weren't sold or done the first payment will be given back completely. Against this regulation the pre-payment a contractual penalty as well. The pre-payment won't be given back as the first payment. When the person who paid the pre-payment the other part quits the contract the other part may keep all the pre-payment. When the partner who received the pre-payment quits he has to hand back twice the amount.

Because it is a - not only in Hungary - well-known problem that contracts are not fulfilled a pre-payment is an important juridical tool to avoid these problems. Everyone who wants to do proper business has the benefit of this, because the juridical band between the partners is stronger. This avoids up to some level being disadvantaged by the other. Undependable of this it is also in Hungary possible to take everyone to the court in case of not fulfilling a contract, this is also an important fact for purchase of real estate, nobody may trust that the maximum consequences would be losing the money already paid. These consequences can be way larger. Hungarian judges follow contracts word by word, there is no possibility of an interpretation with extra wishes (think about the remaining kitchen furniture or small furnaces in a house). Without having a clause in the contract about it there isn't any chance, as well as there is no chance in the "reasons" having made up your mind or you'd believe a permit for purchase wouldn't be possible.

A last important remark: most contracts with foreigners buying real estate still need a permit of the Hungarian State. The seller is not allowed to keep a pre-payment in case the permit is not given. In this case the pre-payment has to be given back, because the contract needs the permit for being valid. On the other side the buyer has to do everything for getting the permit.

And now some information in own affairs

We found a website of a real estate agency wherein a lot of our web pages are copied, including the pictures for selling their own estates. Magyar Kúria had not been asked for copying these pages and we didn't allow it. So far anyone has the impression we also would work under another name as well this is wrong, only where you see our own name Magyar Kúria you have a page of Magyar Kúria. We have to ask you for understanding that we cannot take any responsibility for a real estate agent that has nothing to do with Magyar Kúria. Although our only fault is having published texts, which seemed to be good enough for a plagiarism, we ask you for pardon for any possible confusion.

Of course we help everyone with questions and we normally allow private persons to use a part of our website as long as we are named as the author. Nevertheless we want to decide every case separately, more information you find at our website.

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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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.