Utility transfer in Hungary: a practical guide for foreign property buyers

In this article, you can learn more about the following topics:

• Property purchase and utilities
• Utilities in Hungary
• Handover and utility transfer
• Utility transfer for future rentals
• Challenges for foreign property owners
• Service packages for buyers
• FAQ

Property purchase and utilities

Utilities are services that make living in a modern home convenient, such as having electricity or running water. When you purchase real estate, subscription to these services does not automatically transfer to the new owner. Taking care of the utility transfer is not normally included among the tasks of the lawyer handling the property purchase, and when the sale is completed, the previous owner loses their rights for property management. As a result, you will have to take care of utility transfer on your own – or with the assistance of a trustee like Helpers.

Utility transfer is done separately for each service provider. Sometimes they have information available in English, but if not, you will need to find the relevant process descriptions in Hungarian and rely on a translation app. In that case, look for the phrases “közműátírás” or “felhasználóváltás”.

Utilities in Hungary

Hungarian homes typically have the following utilities, each taken care of by a different provider:

• electricity
• natural gas
• water
• wastewater
• waste management
• central heating
• internet / tv / landline phone

Regarding these services, it is useful to keep in mind the following:

• Water and wastewater are usually managed by separate utility providers. However, wastewater services are often billed based on water consumption, so the same meter reading will be used by both providers (meaning that you will need to read and submit data only once).
  
  
• Telecommunication providers often have bundles that include internet, cable tv, and a landline phone number. However, you are allowed to subscribe to these separately, or you can subscribe only for the internet access if you don’t need cable tv or a landline phone.
  
  
• When you move into a new home, you can keep your old landline phone number if you want it, you just need to request this.
  
  
• If your new property is in an apartment building, you will probably have to pay a building management fee (also referred to as “common cost”, a mirror translation of “közös költség”). Depending on how utilities are managed in the building, this fee may or may not include water, wastewater, or waste management. Make sure to ask the seller what is included before closing the deal, then confirm this with the building manager.

Depending on where the property is located, there may be one or more providers available for each service. Regarding internet and telecommunications, there is a high chance you will be able to choose from several providers. Regarding other services, it is possible that there is only one provider, and you will have to register with that.

Handover and utility transfer

When you take possession of your new property, handover should be documented. This should include noting the relevant meter identification numbers and the various meter readings, and the handover report should be signed by both the seller and the buyer (or their representatives). These records will help establish which party is responsible for consumption before and after the handover, and calculate the seller’s final invoice as well as the buyer’s first invoice.

Utility transfer will have to be initiated with each provider separately. It is best to take care of it as soon as possible, but it should be done within 15 calendar days after handover.

Processes are slightly different for each provider, but these days they are typically available online. You will probably need to create an account, although many utility providers also allow access through Ügyfélkapu (or “Client Gate”), the Hungarian gateway to electronic administration. Once logged in, find the option for the transfer, and upload the relevant documents when prompted. These documents typically include the following:

• Real estate purchase agreement
• Handover report
• Photos of the metering devices upon handover
• Valid photo ID
• Power of attorney (if an authorized representative is handling the process)

Upon registration, you might want to set up online billing, so you can receive your monthly invoices online instead of at your physical address. Online billing is usually free of charge; you might even get a discount for “going green”. When you receive your first bill, you might also get a separate bill for the transfer itself.

Utility transfer for future rentals

If you intend to rent out your new property, you should still transfer utilities to your name. Utilities usually have monthly fees even if there is no one currently living at the property, and you are expected to pay those. Once you acquire a tenant, you may decide whether you want to incorporate utility fees into the rent or invoice them separately. The only utility that might be on your tenant’s name is the one for telecommunications (internet / tv / landline); otherwise utility contracts typically remain with the owner.

Challenges for foreign property owners

The biggest challenge for foreign property owners in Hungary regarding utility transfer is that official documents are often available only in Hungarian (although there have been improvements over the last decade or so). You will have to coordinate administration with several utility providers which all have slightly different processes, all this with a tight deadline. If you are abroad, you will also need a trusted representative who can take care of everything for you based on a power of attorney (POA). Moreover, you will need to get familiar with local billing arrangements to make sure that invoices reach the correct person and they are paid on time.

Service packages for buyers

Helpers offers local presence and local know-how to foreign property buyers. Our team has more than 20 years of experience supporting international clients in Hungary with a wide range of administrative procedures, which naturally include property purchase and utility transfer as well as company formation, residency application, accountancy, and various other services.

Whether you are buying a new home or a rental property, we will be happy to take care of the relevant administration so you can focus on making the most of your new property.

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