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Ease of Doing Business in

Hungary

Hungary Download Profile (1762.7KB, pdf)
Region OECD high income
Income Category High income
Population 9,844,686
GNI Per Capita (US$) 12,990
City covered Budapest

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
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Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 41 40 down
1
73.07 72.74 down
0.33
Starting a Business 75 71 down
4
87.28 87.10 up
0.18
Dealing with Construction Permits 69 66 down
3
71.70 71.69 up
0.01
Getting Electricity 121 118 down
3
60.13 60.11 up
0.02
Registering Property 28 28
-
80.08 80.20 down
0.12
Getting Credit 20 19 down
1
75.00 75.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 77 79 up
2
74.46 73.74 up
0.72
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 8 13 up
5
75.79 73.94 up
1.85
Resolving Insolvency 63 63
-
51.25 50.58 up
0.67

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank: 28

DB 2016 Rank: 28

Change in Rank: 0

DB 2017 DTF (% points): 80.08

DB 2016 DTF (% points): 80.20

Change in DTF (% points): down0.12

Standard Property Transfer
Property value: HUF 164,816,344
City: Budapest
Indicator Hungary OECD high income
Procedures (number) info_outline 4.0 4.7
Time (days) info_outline 17.5 22.4
Cost (% of property value) info_outline 5.0 4.2
Quality of the land administration index (0-30) info_outline 26.0 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain a certified title record at the Land Registry Office

    Agency: Land Registry office

    Obtain an original certified title sheet folio at the Land Registry Office to check the current data of the property. The title sheet folio includes information on liens and outstanding taxes. According to the Hungarian law, the countersigning lawyer may use a title sheet which is issued within 30 days preceding the signing. Due to the amendment of the land registry rules, the fee of the hard copy of a certified title record was increased to HUF 6,250. Since January 1, 2010, the request for electronic land registry sheet is also possible for HUF 3,600 for certified sheet and for HUF 1,000 uncertified sheet. Please note that the printed form of the electronic certified sheet is not considered as certified land registry sheet.
    Less than a day (online procedure) Hard copy certificate HUF 6,250; Electronic certificate HUF 3,600; and Uncertified sheet HUF 1,000
    2

    The sale and purchase agreement is signed by a lawyer

    Agency: Lawyer

    After the negotiations between parties, a written sale and purchase agreement is required, and each page has to be initialed/signed by the parties. The contract becomes valid by the countersignature of a lawyer (signature, stamp and dry stamp on each page). The countersignature certifies the identity of the signing parties and that the content of the agreement is in accordance with the legal regulations and the will of the parties. The lawyers fees are subject to the parties agreement and may vary between 1 and 3%. Current market conditions have been pushing fees down to around 1% of the property value.
    1 day 1% of the purchase price (lawyer’s fees) – subject to the parties’ agreement
    3

    Obtain the extract of the purchaser from the Court of Registry

    Agency: The Court of Registry, the Ministry of Administration and Justice, and notary public

    An extract of the purchaser from the commercial registry must be obtained. The extract (as well as the specimen of signature) is to be filed with regard to the seller of the property as well. With the data indicated in the extract the officer can check that the legal entity really exists and that the manager is really entitled to sign for the company. The commercial register is public, so anybody can go there and ask for a company extract. The extract has to contain the deleted and actual data of the company, and may not be issued earlier than 30 days preceding the sale. In case the data of the seller have not been amended as of the date of purchase (or any further filing), it is sufficient to refer to this fact on the standardized application form, together with the case number in which the required documents had been filed. If no such reference is made, the cost of the extract is payable both in relation to the seller and the buyer. The cost varies according to the issuing agencies and the length of the extract. Generally, the cost is between HUF 3,000 and 6,000.

    An electronic extract can be obtained via the e-mail (cegszolgalat@im.gov.hu) with pre-payment of the cost that is HUF 1,980.
    1 day HUF 5,000
    4

    Register the title at the Land Registry Office

    Agency: Land Registry Offices of Capital Budapest Government Office

    As of January 1, 2010 there are two Land Registry Offices operating in Budapest. The land registry offices accept specimen of signatures both from notary public and from attorney-at-law.

    A new fast-track procedure has been introduced to reduce the registration time at the Land Registry for a higher registration fee of HUF 16,000. The registration fees for the regular procedure is HUF 6600 as a result of the Act 122 of 2006, effective February 4, 2007. As of January 2006, it is possible to retrieve a standardized application form online at: www.takarnet.hu.
    The Registry office only accepts this standard form. Once the application has been submitted to the land registry office, one set of the documents are forwarded to the stamp duty office. The purchaser then receives a letter from the stamp duty office and will pay stamp duty by postal check or bank transfer.

    Note: Usually, if the purchaser does not pay the full purchase price at the signing of the contract, the vendor retains its ownership. (Such retention may be registered until the payment of the full purchase price). The application may request the registration of the sale with retention of ownership, or the registration of title. As of a regulation issued in January 2006, the seller may declare that he/she will request registration of the purchaser's title at a certain date, but no later than 6 months from the date of the agreement. During this time period the registration is pending and no other registrations or applications may be fulfilled regarding the property. In the event that the land registry office does not receive the consent from the owner of the property, the pending application is deleted. The fact of sale with retention of ownership is indicated on a side note in 24 hours from the submission. This means that some kind of application was submitted with regard to the property but it was not judged by the land registry office yet (not registered, not refused). For sales with retention of ownership, a declaration has to be submitted stating that the title may be registered, simultaneously with the deletion of the retention of ownership. Following the submission of the declaration, a new side note will be indicated, and the title of the purchaser will be registered.
    Transfers of property might be subject to a 27% VAT.

    As of 2010, the general duty rate on the transfer of property for consideration was reduced to 4% from 10% on up to HUF 1 billion in sales value.
    The documentation shall include:
    (i) The standardized application form;
    (ii) Two original copies and one photocopy of the contract;
    (iii) Original extract of the purchaser from the commercial register;
    (iv) The company extract and the specimen of signature of both the seller and the purchaser are to be filed.
    15 calendar days (expedited Procedure), or
    30 calendar days (regular Procedure)
    4% of property value (Stamp duty) up to value HUF 1 billion (or 2% for values above with a cap of HUF 200 million)
    + HUF 16,600 (registration fee, expedited Procedure), or
    HUF 6,600 (registration fee, regular Procedure)

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 26.0
    Reliability of infrastructure index (0-8) 8.0
    What is the institution in charge of immovable property registration? Land Registry Office of District XI of Capital Budapest Government Office and Land Registry Office of District XIV of Capital Budapest Government Office
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.5
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.complex.hu/jr/gen/hjegy_doc.cgi?docid=99700141.TV; http://net....
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.foldhivatal.hu/content/view/82/119/; http://net.jogtar.hu/jr/ge...
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: http://njt.hu/cgi_bin/njt_doc.cgi?docid=30824.254786;   http://njt.hu/cgi_...
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Anyone who pays the official fee 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: http://www.foldhivatal.hu/content/view/173/1/
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 8.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? Yes 2.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 6.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Lawyer.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Lawyer.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Metropolitan Court of Budapest (Fővárosi Törvényszék)
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0