immoportal-ungarn.com · Otthon Start & Hövtv. 2026

Law & financing · Property in Hungary

Otthon Start and the Local Identity Act: What Buyers Need to Know in 2026

22 September 2026René Unger, HUN 360 INGATLANReading time approx. 5 min

Since 2025, two regulations have shaped Hungary's residential property market: the state-subsidised Otthon Start mortgage programme and Act XLVIII of 2025 on the protection of local identity (Hövtv.). One makes financing easier for first-time buyers; the other allows municipalities to control who settles there. Anyone buying with Otthon Start is exempt from the Act's restrictions.

1. The Otthon Start programme

Otthon Start is a state-subsidised mortgage for buying or building a home in Hungary. It is aimed mainly at first-time buyers and is independent of marital status and number of children. The programme has been running since 1 September 2025 and can be combined with other subsidies such as CSOK Plusz or the Babaváró loan.

Both price caps apply at the same time: a 60 m² flat may cost at most HUF 90 million (60 × HUF 1.5 million).

Eligibility

• Social insurance: at least 2 years of continuous insurance in Hungary (TB-jogviszony), for example through employment, self-employment or full-time study.
• No significant prior ownership: no share of more than 50% in a residential property in the last 10 years. Exceptions apply, among others, to shares worth less than HUF 15 million.
• Citizenship: Hungarian citizenship or a residence status specified in the decree.
• Further conditions: legal age, no public debts, no criminal record, positive credit check by the bank.

2. Act XLVIII of 2025 on the protection of local identity

The Act (Hungarian “a helyi önazonosság védelméről”, Hövtv. for short) has been in force since 1 July 2025. Details are set out in Government Decree 240/2025 (VII. 31.). It allows municipalities to control urban sprawl, speculation and unwanted population growth themselves. The instruments only apply if a municipality adopts its own by-law.

• Municipal pre-emption right: If someone sells to a newcomer, the following have priority in this order: the municipality, the owners of neighbouring plots and the other property owners in the locality. Neighbours and owners must have held their right for at least 5 years.
• Conditions on residence registration: Registration can be prohibited or made subject to conditions.
• Settlement contribution: Municipalities can require newcomers to pay a settlement contribution (betelepülési hozzájárulás).
• Scope: Only natural persons without a residence, place of stay or property in the locality count as newcomers. Companies and other legal entities are not covered as buyers.

The Act lists exempt groups, such as relatives of local residents, people originally from the locality, or employees moving there for work. Municipalities can exempt further groups. The government offices (Kormányhivatal) review the by-laws and have already objected to legal violations in several cases.

3. How they interact: what applies to Otthon Start buyers?

• Statutory exemption: Anyone buying with state housing support, such as Otthon Start, CSOK Plusz or Falusi CSOK, is exempt from the Act's restrictions. Municipal pre-emption rights, settlement contributions and registration restrictions do not apply to them.
• Delays in the process: Despite the exemption, there is extra effort. The purchase contract must be submitted to the municipality for review, and the exemption is confirmed on application. Posting and review periods of 30 to 60 days noticeably extend the time from signing to loan disbursement.

4. What this means for buyers from Germany and Austria

Buyers from German-speaking countries usually do not meet the Otthon Start requirements because they lack the Hungarian social insurance period or the required status. The exemption from the Local Identity Act therefore does not apply to them either. Anyone moving to a municipality with such a by-law counts as a newcomer. Pre-emption rights, settlement contributions or conditions on residence registration can then apply.

Before signing the contract, the appointed lawyer should therefore check whether the municipality has adopted a by-law under the Hövtv. and which instruments it uses. If an entitled party exercises its pre-emption right, the sale does not go ahead. The deadline for this is 30 days.

Checking municipal by-laws yourself

Whether a municipality has adopted a by-law under the Act can be checked in the Hungarian state's official legal database:

• Nemzeti Jogszabálytár – NJT (National Legislation Database): njt.hu
• Search: Under “Önkormányzati rendeletek” (municipal by-laws), enter “helyi önazonosság” (local identity) or “2025. évi XLVIII.”