Airbnb in Budapest: the shrinking space for short-term rentals

A regulatory minefield from the Golden Age

Short-term rentals in Budapest's city centre were an excellent investment opportunity a few years ago: all you needed was an attractively furnished apartment, a professional photographer and a guaranteed return. Today, however, the situation has changed radically. In 2025, anyone wishing to use a property in Budapest as a short-term rental property will not only have to consider aesthetic and market considerations, but also adapt to an increasingly complex, multi-level legal and regulatory framework.

Municipal permits, condominium contributions, fire regulations, NTAK registration - and the increasingly common quota systems introduced by districts - are all factors that can be major obstacles to starting or running a business. Districts V and VII already limit the number of dwellings that can be licensed, and the trend is clear: regulations may become stricter at the national level.

Hungarian law is binding for everyone - regardless of the nationality of the investor

For a foreign investor, this is a particularly important message: Hungarian law does not distinguish between whether someone is a resident or not. Anyone who buys or uses property in Hungary is subject to the law, and anyone who ignores the Hungarian rules not only faces administrative fines, but can easily lose the source of income from the property. A new regulation, a district decision or a condominium decision can change a previously well-calculated business model overnight.

Real estate investment is not just a matter of calculation

Real estate purchases based on short-term spending are often driven by yield-centric thinking: 'I buy a flat for X million HUF, rent it out for Y euros a month - it will pay for itself in a few years.' The problem is that reality is not the same as the world of Excel spreadsheets. A district quota, a council decision or a new government decree can dash expectations in a flash.

It is not enough to have a legally sound sales contract or a neatly structured lease. The long-term profitability of an investment is determined by the stability (or lack of it) of the regulatory environment - and in this area, in recent years, unpredictability has become the norm. And the tax authorities' interest is ultimately not in the design of the dwelling but in the accuracy of the documentation.

Short-term renting - no longer an area for 'quick money'

Under the current regulatory framework, short-term renting is more of a complex licensing and administrative area than a quick-return investment opportunity. Differences at district level make it even harder to navigate: some have a 120-day annual limit, while others have strict condominium rules restricting Airbnb-type activity.

Meanwhile, NTAK registration is compulsory, guests' details have to be forwarded to the authorities, and political will is playing an increasingly important role in central regulation: fewer apartments for tourists, more permanent residents. In this environment, the discerning investor is no longer just looking at the price and location, but also whether it is still worth entering the market in a given district - or whether it is time to retire.

Risks not included in the ad

The world of short-term letting in Budapest is currently a moving target: the rules are becoming denser, changing and differentiated. If you don't act in time, or don't inform yourself with the right legal background, you can easily find yourself in a situation where licences are not only difficult to obtain - but can be revoked. The regulatory environment no longer favours ad-hoc investors; the future belongs to those who enter the market with legal expertise, strategic thinking and local knowledge.