About Hungary

KEY FACTS

At Key4Hungary believe the Hungarian property market to be a very exciting prospect and see huge potential returns in the form of both strong capital growth and strong rental yields. Indeed the investment potential over the next few years is immense as Hungary needs to gear up for the adoption of the Euro which is driving their economy forward. Other reasons driving this emerging market consist of:

• Soaring FDI from numerous blue chip companies namely Vodafone and Sanyo
• Serious economic reform over the next 2 years fuelled by €20bn borrowed from the European Central Bank to gear up for the adoption of the Euro
• A growing ‘yuppee’ society forming in Hungary in particular Budapest, where young professionals are benefitting off the back of the FDI, getting jobs with better companies and subsequently earning a lot more
• Lower budget deficit meaning no stagnation in the property market and more importantly no recession
• Rising interest amongst tourists wishing to visit this beautiful city

Rental Returns

With three key target audiences for rental, getting your property rented is extremely hassle free. With the professional management companies Key4hungary will introduce you to,  we anticipate void periods to be limited. The three key markets consist of corporate clients, students, and the up and coming young professionals.

With a huge business park only 10 minutes walk from our signature development, it means there is every chance to enter a long term let with a company who can house their staff.

There are numerous universities in Budapest which house some 100,000 students, many of these being foreign students requiring modern style accommodation.

Capital Appreciation

Hungary over the next two years will drastically reform their economy to comply with economic criteria set out by the EU to adopt the Euro. The government are launching various back to works scheme’s which in turn is increasing GDP per capita. They are also encouraging a lot foreign direct investment and companies are being drawn to Hungary for tax purposes. Corporation tax being only 16%. Tourism is also on the increase meaning more visitors and more money being ploughed in to the Hungarian economy. What this will mean for property prices is a huge growth spurt over the next 3-4 years representing a great opportunity for our investors.

• Hungary has experienced a steady and consistent property growth over the last 4 years
• Stamp Duty: 60,000 - 120,000 EUR subject to 6% charge; upwards of 120,000 EUR, the first 16’000 is subject to 2% and 6% on the balance thereafter.
• Hungary has one of the lowest rates of corporation tax in Europe at 16% and 25% Capital Gains tax.
• Budapest accounts for 60% of all commercial activity for the country hence booming popularity amongst the investors.
• Properties may be purchased in Euros which allows investors to offset risk of devaluation on currency change over.
• Euro Mortgages are available for up to 80% of the property value for foreigners with interest rates currently starting at 4.6%..
• Budapest accounts for 70% of Hungary’s total FDI