Rental Law and Tenant Rights in Hungary: 2026 Regulations

Introduction

Hungary’s residential rental market has grown significantly in recent years, driven by urbanisation, rising property prices, and a growing expatriate community. The legal framework governing residential leases is found primarily in Book Six of Act V of 2013 on the Civil Code (Ptk.) and Act LXXVIII of 1993 on the Rules Governing Tenancy and the Use of Premises (Lakástörvény). Together, these statutes regulate lease agreements, the rights and obligations of landlords and tenants, security deposits, and the rules for termination.

This article provides a comprehensive overview of Hungarian rental law as it stands in 2026, including recent regulatory developments.

The Lease Agreement

Form Requirements

While the Civil Code does not strictly require a written lease for residential premises, the Tenancy Act and practical considerations strongly favour a written agreement. Without a written contract, key terms may be difficult to prove, and the landlord’s ability to enforce certain rights (including tax compliance) is significantly limited.

A well-drafted lease agreement should cover:

• The parties’ identification data
• Precise description of the premises (address, floor area, rooms, furnishings)
• Duration of the lease (definite or indefinite term)
• Rent amount, payment schedule, and method
• Utility costs and their allocation
• Security deposit amount and conditions for its return
• Rules on the condition of the premises at handover and return
• Maintenance and repair obligations
• Conditions for termination and notice periods
• House rules and any restrictions (e.g., pets, subletting, smoking)

Definite vs. Indefinite Term

Leases may be concluded for a definite term (e.g., one year) or for an indefinite period. Definite-term leases automatically expire at the end of the agreed period unless renewed. Indefinite-term leases continue until terminated by either party in accordance with the statutory or contractual notice provisions.

Security Deposit (Óvadék / Kaució)

Amount

The security deposit is not capped by statute, but market practice in Hungary typically ranges from one to three months’ rent. The deposit serves as security for the tenant’s obligations, including unpaid rent, utility bills, and damage to the property beyond normal wear and tear.

Holding and Return

The landlord must hold the deposit and return it to the tenant at the end of the lease, minus any justified deductions. The deposit must be returned within a reasonable time after the tenant vacates the premises and the parties have completed a handover inspection. Disputes over deductions are one of the most common sources of rental litigation.

2026 Developments

Recent legislative guidance has encouraged greater transparency in deposit handling. While no statutory escrow requirement exists, best practice recommendations issued by consumer protection bodies now suggest that landlords provide a written itemisation of any deductions within 15 days of lease termination.

Rent and Payment

Setting the Rent

Rent is freely negotiated between the parties—Hungary does not impose rent control or rent caps for private residential lettings. However, local government-owned social housing (önkormányzati bérlakás) is subject to rent limits set by municipal decree.

Rent Increases

For indefinite-term leases, the landlord may generally increase the rent by giving notice in accordance with the contractual or statutory provisions. In practice, many private lease agreements contain annual indexation clauses (often tied to the consumer price index or a fixed percentage).

For definite-term leases, the rent is typically fixed for the contract period unless the agreement expressly provides for interim adjustments.

Late Payment

If the tenant fails to pay rent by the due date, the landlord is entitled to charge default interest at the statutory rate. Persistent non-payment constitutes grounds for termination of the lease (see below).

Obligations of the Landlord

The landlord’s principal obligations include:

• Handing over the premises in a condition suitable for the agreed use, on the agreed date
• Ensuring habitability: The premises must meet basic health, safety, and habitability standards throughout the lease
• Carrying out structural and major repairs (rendes állagmegóvás): This includes maintenance of the building structure, roof, load-bearing walls, central systems (heating, plumbing, electricity), and common areas
• Not disturbing the tenant’s peaceful possession (birtokháborítás tilalma): The landlord may not enter the premises without the tenant’s consent except in emergencies or as permitted by contract
• Providing documentation: The landlord should furnish a proper handover protocol and relevant information about the property

Obligations of the Tenant

The tenant’s principal obligations include:

• Paying rent and utility costs on time and in the agreed manner
• Using the premises in accordance with the agreed purpose and with due care
• Performing minor maintenance and repairs (karbantartási kötelezettség): Day-to-day upkeep, consumables (light bulbs, faucet washers), and damage caused by the tenant
• Notifying the landlord promptly of any defects, damages, or necessary repairs that fall within the landlord’s responsibility
• Not subletting or assigning the lease without the landlord’s written consent
• Returning the premises at the end of the lease in the condition documented at handover, subject to normal wear and tear

Termination of the Lease

Ordinary Termination (By Notice)

Indefinite-term leases may be terminated by either party by giving written notice. The statutory notice period is:

• 15 days before the end of the month for monthly rental periods (i.e., approximately 6 weeks’ effective notice)
• Contractual notice periods may be agreed, provided they do not unreasonably disadvantage the tenant

Definite-term leases generally cannot be terminated by ordinary notice before the agreed expiry date, unless the contract expressly allows it.

Extraordinary Termination (For Cause)

Either party may terminate the lease with immediate effect if the other party commits a fundamental breach. Examples include:

Landlord’s grounds for immediate termination:

• Persistent non-payment of rent despite written warning
• The tenant causes significant damage to the premises
• The tenant uses the premises for an unlawful purpose
• The tenant disturbs other occupants despite written warning

Tenant’s grounds for immediate termination:

• The premises become uninhabitable due to the landlord’s failure to make necessary repairs
• The landlord persistently violates the tenant’s right to peaceful possession

Eviction

If the tenant refuses to vacate after lawful termination, the landlord must seek a court order for eviction. Self-help eviction—changing locks, removing belongings, cutting off utilities—is illegal and may give rise to criminal and civil liability. Hungarian courts generally take eviction cases seriously and may extend deadlines in cases involving vulnerable tenants (e.g., families with minor children, particularly during winter months).

Tax Obligations

Landlord’s Tax Obligations

Rental income is subject to personal income tax (SZJA) at a flat rate of 15%. In addition, a social contribution tax (SZOCHO) of 13% is payable, though this may be capped or exempted under certain circumstances. The landlord must declare rental income in their annual tax return.

Alternatively, landlords may opt for the itemised tax regime for small taxpayers (KATA) or the flat-rate taxation scheme (tételes átalányadó) if they meet the eligibility criteria.

Tenant’s Obligations

The tenant has no direct tax obligation related to the rental. However, if the landlord fails to issue a receipt or report the income, both parties may face scrutiny from the tax authority (NAV).

2026 Regulatory Developments

Several notable changes and developments affect the rental market in 2026:

• Enhanced energy performance requirements: Landlords renting properties with energy certificates rated below a specified threshold may face restrictions or disclosure obligations under updated energy efficiency regulations.
• Digital lease registration: A pilot programme for the electronic registration of lease agreements with the tax authority has been expanded, aiming to improve transparency and reduce the informal (“grey”) rental market.
• Short-term rental regulation: Municipalities, particularly Budapest, have introduced or tightened rules on short-term (Airbnb-type) rentals, including registration requirements, maximum annual rental days, and local tax obligations.
• Consumer protection updates: The National Consumer Protection Authority (Fogyasztóvédelmi Hatóság) has issued updated guidance on unfair terms in standard-form lease agreements, targeting clauses that disproportionately disadvantage tenants.

Practical Recommendations

• Always use a written lease agreement and include a detailed handover protocol with photographs.
• Document the condition of the premises at check-in and check-out to avoid deposit disputes.
• Understand your maintenance obligations—confusion over who is responsible for repairs is a frequent source of conflict.
• Budget for taxes: Landlords should factor in SZJA and SZOCHO when calculating net rental yields.
• Seek legal advice before signing a lease, especially if you are an expatriate unfamiliar with Hungarian law.
• Register your lease: Compliance with digital registration requirements helps both parties and avoids potential fines.

Conclusion

Hungarian rental law provides a balanced framework for residential lettings, protecting both landlords’ property rights and tenants’ housing security. The evolving regulatory landscape in 2026—particularly around energy efficiency, digital registration, and short-term rentals—requires both parties to stay informed and proactive. A clear, well-drafted lease agreement and professional legal guidance remain the best tools for avoiding disputes and ensuring a smooth tenancy.

This article is for informational purposes only and does not constitute legal advice. For advice tailored to your specific situation, please contact our office.