A BRIEF OVERVIEW OF LOCAL GOVERNMENT REGULATIONS AND PROCEDURES:
EVERYTHING YOU NEED TO KNOW
READY TO GET STARTED? ARE YOU READY? DO YOU HAVE EVERYTHING YOU NEED TO REGISTER YOUR PRIVATE ACCOMMODATION WITH THE NOTARY AND OBTAIN A LICENCE FOR IT? LET'S GET STARTED. ☺
BROWSE THROUGH THIS GUIDE, AND BY THE END, YOU WILL KNOW WHAT ARE THE MOST IMPORTANT PRIVATE ACCOMMODATION QUALIFICATION CRITERIA, AND WHAT YOU NEED TO DO, WHERE YOU NEED TO GO, AND HOW TO GET THINGS DONE SO THAT YOU CAN ACTUALLY RECEIVE GUESTS IN YOUR APARTMENT.
Important:
In this guide, we have collected all general information about the inevitable initial steps of private accommodation qualification which is worth knowing before starting the location-specific accommodation licencing process for the establishment of a private accommodation. You have to follow these steps in any case.
Now, as a second step, we have collected the details of the additional licencing process in accordance with the specific local regulations on renting out accommodations in Budapest’s District 1, taking into account the local government rules and procedures.
LET’S GO THROUGH THE STEPS ONE BY ONE ☺
I have completed all the initial steps, and I have the accommodation qualification documents. What should I do next?
1. Where should I go, who should I look for, what are their contact detalis?
At the Local Government of Budapest’s District 1, all official matters must be handled in one place, at the Administration Department.
Its address: 1014 Budapest, Kapisztrán tér 1.
Its customer reception address: 1014 Budapest, Kapisztrán tér 1. III. em. 304. szoba
Its email address: igazgatas@budavar.hu
Its telephone number: 06 1 458 3075; 06 1 458 3087
KRID: IKERPMH
The online appointment booking system can be found of the page.
Opening hours:
Monday: 14:00-18:30
Wednesday: 8:00-16:30
Friday: 8:00-12:00
Lunch break: 12:00-12:30
The contact information of the administrators can be found of the page.
2. What do I have to submit, which interface do I have to use, and where can I find it?
The legally regulated procedure varies according to whether you act as a natural person or a firm.
If you act as a firm, keep this in mind:
‘Act CCXXII of 2015 on the General Rules of Electronic Administration and Trust Services for Business Organisations and Government Decree 451/2016 (XII. 19.) on the Detailed Rules of Electronic Administration makes electronic administration mandatory, therefore, companies and sole proprietors can only initiate procedures electronically.’
As a natural person, you can act electronically, by post, or in person. In case of electronic submission, the Local Government will also stay in contact with you electronically during the procedure.
You have to submit the document titled Registering the continuation of the provision of accommodation services, which is available at:
- Local-Government Portal, selecting ‘industry and commerce’ sector, then selecting ‘accommodation’ case type;
- via e-paper;
- as a paper-based form to be submitted by post or in person.
It is important to clarify the following:
1. If you intend to apply for a private accommodation licence for a residential property without altering its intended use (e.g. renting it out for short-term stays), you may not be required to undergo the townscape-related procedure or fulfil your obligation to provide parking spaces by monetary payment.
2. In addition, for example, if you create two smaller residential units with separate entrances from a larger apartment, or you connect two smaller apartments into one apartment with a single entrance, then in these cases, the number of stand-alone building units will also change, and a townscape-related procedure must be carried out as well.
You can find the Local Government Regulation here, you can contact the staff of the Department of the Chief Architect here, and you can download the forms here.
If you create two separate apartments from a single larger apartment, the establishment of the new apartment carries an obligation to provide parking spaces; however, it is permissible to fulfil this obligation by providing payment instead. According to a decree issued in 2023, the amount required is HUF 2 million per apartment. You can view the regulation here, and you can contact them if you have any further questions.
You must attach the following documents to your application, from which we have highlighted the mandatory ones:
- in case of accommodation not owned by the applicant, a document confirming the right to use the accommodation or a copy thereof, with the exception of the title deed;
- in case of usufruct – if the accommodation provider is not the owner or the usufructuary – a document certifying the consent of the usufructuary;
- in case of jointly owned accommodation, if not all joint owners are accommodation providers, a document certifying the consent of the joint owners;
- floor layout plan (map copy issued by the Land Office or the Chief Architect’s Office of the Mayor’s Office);
- a document certifying the existence of the accommodation management software;
- the qualification document issued by the accommodation qualifying organisation;
- in case of a company, the specimen signature of the company’s representative; specimen signature (in case of housing co-operatives and associations or foundations with no tax registration number);
- the original of the authorisation.
NOTE:
YOU SHOULD SUBMIT THE APPLICATION TO THE LOCAL GOVERNMENT ONLY IF YOU ALREADY HAVE A VALID TAX NUMBER AND STATISTICAL CODE (IF YOU ARE A SOLE PROPRIETOR).
3. Fees, deadlines
Pursuant to the legal regulations, the certificate is issued within 8 days of the submission, and the registration takes place within 15 days in case of submitting a complete application. After this has been done, your accommodation will be included in the public register.
Important: In Budapest’s District 1, applications are not rectifiable. You will be notified of the missing information, but your application will be considered incomplete and must be resubmitted.
The procedure is free of charge.
NOTE:
ACCOMMODATION SERVICES CAN ONLY BE PROVIDED IN ACCOMMODATIONS THAT MEET THE QUALITY, TECHNICAL, AND SERVICE REQUIREMENTS OF THE ACCOMMODATION TYPE TO WHICH THE GIVEN ACCOMODATION BELONGS.
4. Reporting obligations
Remember that you have an obligation to report guest traffic to the local government. By 31 January of the year following the current year, you must provide aggregated data in writing on the number of guests received and the number of nights spent by the guests at the accommodation, broken down by guests residing in Hungary and those not residing in Hungary.
This can be submitted here:
5. Additional information
We would like to draw your attention to the fact that if there are changes to your data or if your accommodation ceases to exist, you must notify the local government within 8 days.
You can find more information about this here.
In the event of an unfavourable decision, you are entitled to seek legal remedy.
6. Applicable legislation
➤ Government Decree No. 239/2009 (X. 20.) on the Detailed Conditions for the Provision of Accommodation Services and the Procedure for the Issuance of Accommodation Operation Licenses
➤ Government Decree No. 173/2003 (X. 28.) on Non-Commercial, Community Recreational Accommodation Services
➤ Act CLXIV of 2005 on Trade
➤ Act LXXVI of 2009 on the General Rules for Starting and Pursuing Service Activities
➤ Act CL of 2016 on General Public Administration Procedures
➤ Act CCXXII of 2015 on the General Rules of Electronic Administration and Trust Services
➤ Government Decree No 451/2016 (XII. 19.) on the Detailed Rules of Electronic Administration
➤ Act CLVI of 2016 on the State’s Responsibilities Regarding the Development of Tourism Regions
➤ Government Decree 235/2019 (X. 15.) on the Implementation of the Act on the State’s Responsibilities Regarding the Development of Tourism Regions
➤ Act CXXV of 2018 on Government Administration
➤ Act I of 2017 on the Code of Administrative Court Procedure
➤ Act XCIII of 1990 on Duties
➤ Government Decree No. 469/2017 (XII. 28.) on the Costs of Proceedings, the Reimbursement of Costs Related to the Inspection of Files, the Payment of Costs, and Legal Aid
➤ Act CLXXXIX of 2011 on Local Governments in Hungary
