Recently, Tibor Navracsics, Minister for Administration and Regional Development, presented an extraordinary bill aimed at Protection of Small Towns. The bill seeks to preserve the identity, community, and economic stability of rural settlements against real estate speculation.
Key Measures of the Bill for Protection of Small Towns
The bill includes numerous, unexpectedly far-reaching measures, including:
Ban on Buying and Selling Real Estate
According to the bill, the purchase and sale of real estate in certain small towns will be restricted to prevent the erosion of local communities and the increasing dominance of foreign investors.
Expansion of Pre-Emptive Rights
Local municipalities will be granted pre-emptive rights to protect towns from unwanted sales and to have the opportunity to reclaim valuable areas.
Conditions for Real Estate Purchases
The purchase of real estate in small towns will be subject to stricter regulations to safeguard the interests of local residents and the community.
Establishment of Local Tax Obligations
The bill also includes the determination of local tax obligations, which could help ensure the financial stability of municipalities.
Opinions and Further Developments
Some consider the proposed measures essential for protecting rural communities, while others view them as excessive state intervention. Nevertheless, the bill for the protection of small towns remains on the agenda.
The bill is still in its early stages, and further consultations are required. The measures could have far-reaching effects on our clients’ real estate investments, which is why we are closely monitoring developments.
We will keep you continuously informed about new developments.
Further Information and Contact
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Dr. Géza Katona, LL.M., Attorney at Law
Katona és Társai Ügyvédi Társulás
(Katona & Partner Rechtsanwaltssozietät / Attorneys’ Association)
H-106 Budapest, Tündérfürt utca 4.
Tel.: +36 1 225 25 30
Mobile: +36 70 344 0388
Fax: +36 1 700 27 57
g.katona@katonalaw.com