When Hungary’s Identity Protection Law Alsóörs discussion hit the headlines today, most of us watching property trends knew this moment was coming. Hungary passed the Identity Protection Law months ago, and now Alsóörs – a prime Balaton town – is set to become its first real-world experiment.
As someone who’s been following this law since its early drafts (and let’s face it, writing multiple long blog posts on it), it’s oddly satisfying to watch real-world applications finally start. It also raises the stakes for anyone considering property purchases in Hungary, particularly in the Balaton region.
What exactly is the Identity Protection Law?
For those joining the conversation late: the Településvédelmi törvény, often called the Identity Protection Law in English, allows Hungarian municipalities to restrict who can buy property or settle in their jurisdictions. The official justification? To protect “local identity” – a phrase broad enough to cover everything from population management to infrastructure strain to preserving village character.
The law grants local governments new authority to:
- Set maximum population caps.
- Regulate or block certain types of new development.
- Prioritise local buyers through pre-emption rights.
- Limit sales to outsiders if growth threatens infrastructure or social cohesion.
In theory, it’s about giving local councils more control as Hungary grapples with rising property prices, population shifts, and foreign demand for homes, particularly in Budapest, around Balaton, and select countryside regions.
Identity Protection Law Alsóörs: How it May Apply It
Alsóörs isn’t just any village. It’s one of those Balaton towns that quietly ballooned during the last two decades of Hungary’s domestic property boom. According to recent figures, Alsóörs’ population has grown by an eye-watering 47% over the past 23 years.
Mayor Zsolt Hebling, speaking to Hungarian press, stated bluntly:
“We’ve managed to preserve the liveability of our village. I’m glad municipalities finally have tools to make their own decisions.”
It’s a perfectly on-brand statement for a local leader facing the classic small-town conundrum: everyone wants to move here, but no one wants the village to change. And change it has. Balaton’s growing popularity as a second-home market – both for affluent Hungarians and increasing numbers of EU and non-EU buyers – has pushed local prices up and put pressure on services like schools, kindergartens, and infrastructure.
What could Alsóörs actually do?
If Alsóörs proceeds, they would first need to define what they consider a sustainable population limit. This isn’t an easy calculation. It involves balancing the needs of full-time residents, seasonal visitors, rental property owners, and those still hoping to settle.
Once set, Alsóörs could then:
- Freeze new housing developments that would push population beyond that cap.
- Impose pre-emption rights to give locals or the municipality first refusal when properties are sold.
- Restrict sales to non-residents or limit secondary home ownership.
The legal framework gives municipalities wide latitude but also leaves much discretion to local councils. How Alsóörs defines “sustainable” could become the first case study in how different towns interpret the law.
As Alsóörs proceeds, the identity protection law Alsóörs case will serve as a model for how other towns may follow or avoid the same path.
Alsóörs won’t be the last
While Alsóörs may be first, it almost certainly won’t stand alone. Other Balaton towns are already paying close attention. In Vác, a commuter town north of Budapest, local officials have tightened zoning laws in recent years, even without invoking the Identity Protection Law directly. In their case, they’ve restricted apartment block construction and increased minimum lot sizes to slow population density.
For now, Vác is using zoning to do what Alsóörs may soon do under the new law. But as public services strain, especially in growing suburban belts, we may see many more municipalities quietly join Alsóörs in the coming year.
Why this matters for property buyers
If you’re a foreigner or even a Hungarian buyer considering property in Hungary’s most desirable locations, the Identity Protection Law adds a new layer of uncertainty.
At present:
- No national restrictions exist on foreign buyers for most residential properties.
- Non-EU citizens still require purchase permits, as they always have.
- EU citizens remain free to purchase without additional bureaucracy.
But if more towns adopt Identity Protection Law powers, we could see specific local restrictions that:
- Limit who can purchase.
- Require municipal approval before certain sales proceed.
- Create de facto barriers for seasonal, investment, or non-resident buyers.
In short: buying property in Hungary may soon involve not just national regulations, but municipal politics as well.
Could this face legal challenges?
Undoubtedly. Critics of the law – both inside Hungary and at EU level – have already raised concerns that these types of local controls may conflict with principles of free movement and non-discrimination enshrined in EU law.
So far, the Hungarian government maintains that the law is “identity protection,” not discrimination. But if towns like Alsóörs adopt aggressive rules that clearly disadvantage certain categories of buyers (especially foreign buyers or younger residents priced out of local markets), legal challenges may follow.
For now, the law’s careful wording leaves room for local interpretation. How Alsóörs handles this first test case will likely inform both future town-level decisions and any future legal reviews.
Hungary’s balancing act: identity vs open markets
Hungary’s government faces a delicate balancing act. On one hand, there’s legitimate pressure from voters in smaller communities to protect local life, avoid overdevelopment, and keep young families from being priced out. On the other, Hungary remains keen to attract foreign capital, investment, and tourism — much of which flows into these same resort towns.
The Identity Protection Law is Hungary’s attempt to split the difference, letting municipalities manage local growth without triggering a full-scale ban on foreign ownership (which would be far more problematic legally).
Whether that balance holds will depend largely on how municipalities like Alsóörs implement — or don’t implement — their new powers.
For a full background on the Településvédelmi törvény and how we got here, read my full series.
- Part 1:
Hungary Property Law 2025 - Part 2:
Hungary Property Law: Identity Protection - Part 3:
Hungary Identity Protection Property Law - Part 4:
Hungary Property Law Impact - Part 5:
Hungary New Property Law Is Here
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Anikó Woods is a Canadian-Hungarian writer, technology specialist, and digital strategist who swapped Toronto traffic for Hungarian bureaucracy. She’s the creator of HOW TO HUNGARY: Budapest & Beyond. Since moving to Hungary in 2017, she’s been deep in the paperwork trenches—fact-checking, interviewing experts, and helping others make sense of the madness. Her writing turns chaos into clarity, with a few laughs (and wine recommendations) along the way.