Hungary’s New Property Law “Identity Protection”: Who Gets to Move In?

Hungary’s New Property Law “Identity Protection”. Let me tell you, there’s nothing like writing a book on Hungarian bureaucracy to realise that just when you think you’ve covered everything, the government casually tosses in a constitutional amendment. Because, why not?

Welcome to Part Two of our deep dive into Hungary’s latest shake-up: the new “Identity Protection” property law. If you missed the first post, where we covered the broader context and potential impact, you can catch up here. But today? Today we’re going deeper into the legal weeds—without needing to be a lawyer. (And just to be clear, I’m not one.)

So, what exactly is this new law? Why are villages suddenly allowed to decide who’s “local enough” to live next door? And should you be worried if you’ve been dreaming about buying a weekend winehouse in Badacsony?

Let’s unpack it all.

What Is Hungary’s New Property Law “Identity Protection”?

In April 2025, Hungary passed what’s now commonly referred to as the identitásvédelmi törvény — literally, the Identity Protection Law. It gives local councils (yes, the same folks who organise village fairs and decide whether the town gets a new swing set) the power to block property sales to outsiders in the name of protecting community identity.

The law was passed alongside the 15th amendment to Hungary’s Fundamental Law (that’s the Constitution to you and me), which now states that “one’s right to choose a place of residence shall not infringe upon a local community’s fundamental right to its identity.” A subtle but powerful shift.

It’s a clever bit of legal phrasing that flips the script. Instead of every Hungarian (or EU citizen) having equal right to move freely, the community now has constitutional backing to say “no thanks.”

Cue the raised eyebrows.

What Local Councils Could Actually Do

If a municipality opts in, they can:

• Set a population cap—Once they hit their “desired” size, extra restrictions kick in.

• Ban property sales to non-locals—Yes, even if you’re Hungarian but not from their town.

• Claim first dibs—Using the right of first refusal, the local council or neighbours can match a buyer’s offer and buy the property instead.

• Attach conditions to residency—You might need to use local construction materials, contribute to infrastructure, or even learn Hungarian.

• Charge extra fees or taxes—Especially if you’re considered a speculative buyer.

Where This Is Likely to Happen

Let’s be honest—your sleepy village in Zala where the population has been declining since 1992? Probably not going to bother.

But booming resort towns, posh commuter villages, and places under pressure from short-term lets? Absolutely.

Expect to see these rules pop up in:

• Suburbs of Budapest (especially those in Pest county)

• Lake Balaton towns (Tihany, Balatonfüred, Fonyód… looking at you)

• Lake Velence and its surrounding hills

• Popular wine regions and scenic countryside within two hours of the capital

Estimates suggest 300–400 out of Hungary’s 3,100 municipalities could adopt these restrictions. And don’t assume small size means disinterest—some of the tiniest villages are the most fiercely protective of their character.

What Hungary’s New Property Law “Identity Protection” Means for You

Let’s say you’ve found your dream property—half vineyard, half ruin—but it’s in a town that’s opted into this law.

Suddenly, your path to buying looks like this:

1. Get local approval: The mayor’s office might want to know who you are, what you plan to do, and whether you’re going to tile your roof with something suitably “traditional.”
2. Wait: Locals might have a chance to match your offer.
3. Possibly be rejected: Yep, just because you’re not from there.
4. Negotiate terms: If you’re allowed to proceed, you may have to agree to certain conditions.
5. Pay extra: Think of it like a community preservation tax.

 Some communities are preparing new local decrees to implement these tools by summer 2025.

What You Should Do (If You’re Still Buying Property)

1. Check the municipality’s stance – If they’ve opted in, ask to see their decree.
2. Factor in delays – Sales may take longer as local councils review buyers.
3. Document your ties to the area – Any proof you’re not a “speculator” could help.
4. Prepare for negotiations – Buying in 2025 may feel like applying to a co-op board.

The Big Questions (and Uncomfortable Answers)

• Can a town really say “no” to me buying a house?
  Yes. That’s the entire point of the law. Constitutional backing makes it harder to challenge.

• Does this apply to Hungarian citizens too?
  Also yes. Being Hungarian doesn’t guarantee local acceptance.

• Is this targeting foreigners?
  Not officially—but in practice, it could disproportionately affect non-locals, non-Hungarian speakers, and those buying for investment or part-time use.

• Can I get around it?
  Only if you find a town that hasn’t opted in—or you marry the mayor. (Just kidding. Mostly.)

The Bigger Picture

This law isn’t happening in a vacuum. It’s part of a broader trend in Hungary of increasing local control and a pushback against demographic and development pressures.

Government officials say they want to avoid dormitory towns—places that lose their identity and community cohesion due to commuter sprawl or speculative tourism. In theory, that’s understandable. In practice, it could make rural revival harder and homeownership trickier for everyone who doesn’t already belong.

Is it constitutional? Possibly. Is it problematic? Definitely. Is it popular? Among some local leaders—very.

Stay Tuned (Because This Is Just the Beginning)

This law will evolve quickly as municipalities write their own rules and property buyers start to challenge them. And I’ll be covering every twist and turn. If you want to stay ahead of the changes—especially if you’re eyeing property in Hungary – sign up for my monthly newsletter roundup.

And if you haven’t already grabbed a copy of my ebook, HOW TO HUNGARY: Budapest & Beyond, what are you waiting for? It’s packed with over 500 verified resources, expert advice, real stories, and everything I’ve learned (sometimes the hard way) about moving to, living in, and buying property in Hungary.

👉 Buy the book here
👉 Follow me on TikTok where I post videos daily

Because trust me—this isn’t the last legal twist Hungary has in store.

---

Dig Deeper: Articles That Helped Me Decode This

Recent news reports and analyses from Hungarian outlets like Telex​​ telex.hu, HVG ​hvg.hu​, hvg.hu, Portfolio.hu ​portfolio.hu​, portfolio.hu, 24.hu​ 24.hu, ​24.hu, as well as English-language coverage by Reuters​ reuters.com and government communications​ budapesttimes.hu, have informed the above overview.

These include legal commentary on the constitutional amendment ​telex.hu, economic data on property price trends​dailynewshungary.com, and reactions from local officials and citizens as reported in various media ​sonline.hu​ and reddit.com. All information is based on sources published in 2025 after the law’s passage, with translations provided for Hungarian-language references.