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Buying property in Hungary as a foreigner: Rules and regulations

Foreign natural or legal persons must obtain a permit if they wish to purchase real estate in Hungary. However, there are numerous exceptions. The Ecovis consultants explain what these are and what documents must be submitted for approval.

The acquisition of real estate by foreigners in Hungary is governed mainly by the “Act on certain rules for the lease and disposal of flats and premises” and the government decree on the “acquisitions by foreigners of real estate other than agricultural and forestry land.”

Is official consent required for buying real estate?

Acquiring the ownership of real estate not classified as agricultural and forestry land by a foreign legal entity or foreign natural person requires the permission of the competent government office in the capital city or the county where the property is located.

Who does not need to obtain a permit?

No permit is needed in the following situations:

• For citizens of Member States of the European Union (EU), legal persons or organisations without legal personality
• For nationals of Norway, Liechtenstein, Iceland, legal persons or entities without legal personality
• For nationals of Switzerland
• For dual nationals, if one of their nationalities is Hungarian or an EU Member State, and for Hungarian nationals living abroad, in the case of real estate acquisition
• In the case of inheritance
• In the case of real estate acquisition by persons having refugee or protected status

We support you in ensuring a smooth process when buying a property in Hungary.

György Zalavári, LL.M attorney at law, ECOVIS Zalavári Legal Hungary, Budapest, Hungary

What documents are required?

The following documents must be submitted to the competent government office:

• The application form
• HUF 65,000 real estate administrative service fee
• A copy of a passport or identity card certified by a legal representative or notary
• A recent certified or notarised copy of the company’s certificate of legal entity or legal representative of the branch or commercial representation
• The original or notarised contract, agreement or declaration of transfer of ownership of immovable property
• Recently certified/e-certified title deeds
• Power of attorney
• A certificate of good conduct proving a clean criminal record

In some special cases, additional documents may be required:

• In the case of a minor applicant, an officially translated copy of the birth certificate as well as the consent of his/her guardians
• If the seller or buyer was not present in person when the contract was concluded, an original or a notarised copy of the power of attorney
• If the applicant is a sole trader intending to carry out economic activities in Hungary for which the property to be acquired is necessary, he/she must verify the business activity
• If the applicant is a foreign natural person who has had a registered place of residence, domicile or accommodation in Hungary for at least 5 years continuously and has been employed for at least 3 years in total during this period, a certificate of employment issued by the state tax authority must also be provided

What happens during the licensing procedure?

The government office will check that the application contains all the necessary documents and annexes. During the process, the office will contact the competent local authority, the National Directorate General for Aliens and the National Police Headquarters in the case of foreign natural person applicants, to determine whether there is any public interest in the application. The time limit for this is 45 days.

The authority will investigate whether:

• The acquisition of property by the foreign national is contrary to the public interest
• The foreign buyer is not banned from the territory of Hungary
• The foreign buyer is not wanted
• The applicant intends to carry out economic activities in Hungary
• The property to be acquired is necessary for the applicant’s economic activity
• The applicant intends to reside in Hungary on a permanent basis

When will the application be rejected?

If the documents submitted are incomplete, or if the acquisition of the real estate is contrary to the public interest or the interests of the municipality, the application will be rejected. The decision of the government office may however be challenged in court.

For further information please contact:

György Zalavári, LL.M attorney at law, ECOVIS Zalavári Legal Hungary, Budapest, Hungary
Email: gyorgy.zalavari@ecovis.hu

US expats in France: Navigating trust reporting obligations

US expats living in France must comply with their trust reporting obligations. Failure to do so can result in severe penalties. The Ecovis experts know what to do to ensure legally compliant implementation of these requirements.

Unlike most common law countries (USA, UK, Canada in particular), French law does not recognise the existence of trusts. The assets held in such trusts and the income they generate may be seen as being held and received directly by the trust beneficiaries.

US citizens in particular living in France need to be aware of their ongoing tax obligations. One of the most important yet often overlooked areas involves US reporting requirements for trusts, in which a US citizen is involved, either as a beneficiary, trustee, or through foreign assets (please note that this obligation is also triggered when one of the assets placed in trust is located in France).

Which declarations must be made

There are two specific declarations to be made: a declaration of the market value of the items placed in trust and an eventual declaration, for example if there is a change affecting the trustees or beneficiaries of the trust, or if any changes are made to the trust deeds. The triggering event for this obligation is assessed on 1 January of a given year, and the deadline is generally in June of the same year.

The Ecovis experts recommend that affected US expats should definitely consult a tax attorney specialising in cross-border matters. This is the only way to ensure that the complex obligations are fulfilled, especially with regard to foreign trusts, in a tax-efficient manner.

If you need advice on trust reporting or other tax matters, please contact us.

Nicolas Savoy, Lawyer, ECOVIS CF Société d’Avocats, Paris, France

Working in Vietnam as a foreigner: What companies and employees need to know

Foreign workers wanting to work in Vietnam must go through a complex process to obtain a work permit. Companies that want to hire foreign workers also have numerous obligations to fulfil. The Ecovis experts explain exactly what these obligations are.

Conditions for foreigners to work legally in Vietnam

According to the provisions of the 2019 Vietnamese Labour Law, numerous conditions must be met in order to work legally in Vietnam. Foreigners must:

• Be at least 18 years old and possess full civil capacity
• Provide evidence of any relevant professional qualifications, technical skills or work experience
• Meet health standards set by the Ministry of Health
• Not be serving a criminal sentence or be under criminal investigation in Vietnam or any other country. A clean criminal record is necessary.
• Obtain a work permit issued by the Vietnamese authorities, unless exempted under specific regulations

Required documentation for foreign workers in Vietnam

Foreign workers applying for a work permit in Vietnam must submit the following documents:

• A certified copy of a valid passport, which must comply with Vietnamese legal requirements
• A health certificate which must be issued by a competent medical authority in Vietnam or abroad and be valid for up to 12 months
• A criminal record certificate issued by a competent authority in Vietnam or abroad no more than 6 months prior to the date of submission
• Documents verifying the applicant’s status as a manager, executive director, expert, technical worker or other regulated professional
• Confirmation from the Home Affairs Department on the approval of the enterprise’s demand for employing foreign workers
• Two recent passport-sized photos, which must be taken within six months before submission
• Legal documents from the employer such as an enterprise registration certificate, company charter, etc.
• Power of attorney for the applicant and the applicant’s legal documents

Important note: The law requires that all foreign-issued documents must be legalised, notarised and translated into Vietnamese.

Ecovis' team of experienced lawyers supports employers and foreign workers in applying for a work permit – from the job advertisement to the application for a criminal record check and the submission of the application.

Vu Manh Quynh, Managing Partner, ECOVIS Vietnam Law, Ho Chi Minh City, Vietnam

Work permit process for foreign workers in Vietnam

Step 1: Recruitment and candidate search (within 30 days)

Employers must conduct a recruitment process within 30 days, which includes posting job vacancies on the official labour portals (Ho Chi Minh City: https://vieclamhcm.com.vn/ or Hanoi: https://vieclamhanoi.net/trang-chu), searching for candidates, and conducting interviews. This process ensures that domestic workers are given priority before hiring foreign employees.

Step 2: Approval of foreign labour use (10 working days processing time)

If they wish to employ foreign workers, the employer must submit an explanation of the demand or of the change in foreign employment demand, depending on their situation.

Step 3: Work permit application (5 working days processing time)

Once approval is granted, the employee must submit a work permit application with all the required documentation as listed above. If the application is valid, it will be processed within 5 working days.

For further information please contact:

Vu Manh Quynh, Managing Partner, ECOVIS Vietnam Law, Ho Chi Minh City, Vietnam
Email: quynh.vu@ecovislaw.vn

Nguyen Nhuan, Partner, ECOVIS Vietnam Law, Ho Chi Minh City, Vietnam
Email: nhuan.nguyen@ecovislaw.vn