Dealing with Construction Permits in
Hungary
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
HUF 143,066,000
- City: Budapest
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain certificate of site ownership and site map from the Földhivatal
The site map is obtained by BuildCo. The site ownership certificate can be obtained either by BuildCo or by the local construction authority. The authorities have been introduced electronic application and database, and internal administrative process has become more efficient and takes 1 day to complete.
Agency: Földhivatal
|
1 day
|
HUF 10,000
|
| 2 |
Request and obtain construction license
Hungary passed a new Building regulation in October 2009 that reduced the legal time to issue a building permit from 60 to 45 days.
Agency: Municipality
|
45 days
|
HUF 10,000
|
| * 3 |
Received on-site inspection
There is no need to request the inspection. After the permit is obtained, the local construction authority decides when it will conduct the inspection. In general, for smaller scale projects, the inspection may never even take place.
Agency: Municipality
|
1 day
|
no charge
|
| * 4 |
Request and obtain the construction authority approval on the architectural and technical plans, and technical description
The construction authority approves the plans and descriptions. Although there is a time limit of 30 days, a lack of response is not to be construed as approval. As a rule, it takes 45 days to complete the procedure.
Agency: Municipality
|
45 days
|
no charge
|
| * 5 |
Received on-site inspection from the construction authority
The inspection may take place anytime during the construction cycle. There is no need to request it.
Agency: Municipality
|
1 day
|
no charge
|
| * 6 |
Request an authorization from the water authorities
A written authorization from the water utility must be obtained. The authorization must be obtained before the building permit is issued, but it can be processed simultaneously with the building permit.
Agency: Budapest Water Company
|
1 day
|
no charge
|
| * 7 |
Receive inspection from water authorities
Agency: Budapest Water Company
|
1 day
|
no charge
|
| * 8 |
Obtain an authorization from the water authorities
Agency: Budapest Water Company
|
29 days
|
no charge
|
| * 9 |
Request an authorization from electricity works
A written authorization from the electricity utility must be obtained. The authorization must be obtained before the building permit is issued, but it can be processed simultaneously with the building permit.
Agency: Budapesti Elektromos Művek Rt.
|
1 day
|
no charge
|
| * 10 |
Receive inspection from electricity authorities
Agency: Budapesti Elektromos Művek Rt.
|
1 day
|
no charge
|
| * 11 |
Obtain authorization from electricity authorities
Agency: Budapesti Elektromos Művek Rt.
|
29 days
|
no charge
|
| * 12 |
Request an authorization from sewage authorities
A written authorization from the sewerage utility must be obtained. The authorization must be obtained before the building permit is issued, but it can be processed simultaneously with the building permit.
Agency: Sewage Works
|
1 day
|
no charge
|
| * 13 |
Receive inspection from sewage authorities
Agency: Sewage Works
|
1 day
|
no charge
|
| * 14 |
Obtain authorization from sewage authorities
Agency: Sewage Works
|
29 days
|
no charge
|
| * 15 |
Request and obtain fire protection authorization
The architectural plans contain the fire protection statement, which must be approved by the Fire Department. The authorization must be obtained before the building permit is issued, but it can be processed simultaneously with the building permit.
Agency: Fire Authority
|
30 days
|
no charge
|
| * 16 |
Obtain Statement of the Municipal Planning Committee
If the Municipal Planning Committee characterizes the location of the new building as “special” and finds other characteristics, such as size and color, to be exceptions to local regulations, a statement must be obtained from the committee. The documents to be filed are the Land Registry Office ownership title and site map.
The Municipal Planning Committee now has a stronger mandate and role in handling this procedure. (In the past, its role was advisory in nature).
Agency: Municipal Planning Committee
|
30 days
|
no charge
|
| * 17 |
Provide evidence of the availability of a licensed site manager and notify about construction inception
The builder is required to submit all documents 15 days prior to the start of the construction. The public works authority may require the investor to pay a regular fee to the public network (e.g., sewerage) to cover operational costs. The construction authority may conduct an inspection at any stage.
If the value of any construction project exceeds HUF 30 million, BuildCo must notify the County Government Office of its intention to start construction. The Regional Administrative Office must either approve or disapprove the start of construction. The office has authority over the participants, their liability, the building permit, the state of the neighboring buildings (which must be documented), and provides information to the tax authority (to curb unauthorized activity) and to the local authority.
Agency: County Government Office
|
5 days
|
no charge
|
| * 18 |
Request and obtain Letter from Tax Authority
Beginning in 2005, data reporting to the Tax Authority is required for all construction projects valued at more than HUF 10 million. The builder submits a letter to the Tax Authority along with the application for a building permit.
If the value of the construction project is above HUF 10 million, the local authority informs the following institutions:
- Tax Authority.
- Construction Authority (for quality control).
- Labor Authority (to control the informal economy).
Agency: Tax Authority
|
30 days
|
no charge
|
| 19 |
Request and receive connection to the sewerage network
Agency: Sewage Works
|
21 days
|
no charge
|
| * 20 |
Contact a registered technician to set up sewerage system
Agency: Registered Technician
|
1 day
|
no charge
|
| * 21 |
Request and receive connection to telephone
There are several network providers besides Hungarian Telephone and Cable Corp. There is a competition on this market, so it is recommended to obtain offers from several network providers. Costs therefore could vary between 15,000 and 100,000 HUF
Agency: Hungarian Telephone and Cable Corp.
|
14 days
|
HUF 30,000
|
| * 22 |
Request water connection
The water connection consists of two parts: the on-site part (which must be done by a registered technician) and the off-site part (which is the connection from the existing utility to the on-site part). The builder must contact the people in charge of each part separately.
The cost depends on the position of the building (distance from the source, local situation). Costs are specific to each case, depending on the expenditures involved.
Agency: Budapest Water Company
|
1 day
|
HUF 100,000
|
| * 23 |
Contact a registered technician to set up water connection
Agency: Registered Technician
|
1 day
|
no charge
|
| * 24 |
Receive on-site inspection to check on cleanness for water connection
The inspection is requested when the connection is requested.
Agency: Budapest Water Company
|
1 day
|
no charge
|
| * 25 |
Receive connection to water
Agency: Budapest Water Company
|
10 days
|
no charge
|
| 26 |
Notify authorities of the completion of construction
When the building is completed and the municipality has been notified, the builder (owner) must arrange for a site inspection by the municipal experts; water, electricity, and sewerage providers; and the Fire Department. After the on-site inspection, all the inspectors must declare that the building has been completed in compliance with the technical plans or identify any unfinished work. If there is unfinished work, the deadline for completion must be stated in a document. After completion, the authority issues the occupancy permit.
Agency: Municipality
|
1 day
|
no charge
|
| 27 |
Receive final inspection of the completed building
Agency: Municipality
|
1 day
|
no charge
|
| * 28 |
Obtain Occupancy Permit
When the building is completed and the municipality has been notified, the builder (owner) must arrange for a site inspection by the municipal experts; water, electricity, and sewerage providers; and the Fire Department. After the on-site inspection, all the inspectors must declare that the building has been completed in compliance with the technical plans or identify any unfinished work. If there is unfinished work, the deadline for completion must be stated in a document. After completion, the authority issues the occupancy permit.
Agency: Municipality
|
30 days
|
no charge
|
| * 29 |
Register the building with the Land Registry Office
The owner must submit a “realization plan” to the Land Registry Office to register the new building and the owner’s name on the official site map. In small villages, registration takes 30 days; in big cities and especially in the capital, registration might take from 30 days to 4 years, depending on the specifications of the lot. There is no registration fee, but there is the cost of a lawyer’s services (HUF 15,000), although the company’s own lawyer may handle the process.
Agency: Land Registry Office
|
30 days
|
no charge
|
* Takes place simultaneously with another procedure.