Getting your deposit back in Budapest: a calm, step-by-step guide

What the deposit is, and what it covers

The rental deposit is called the kaució. It is your money, held by the landlord as security, usually 2 to 3 months' rent (3 if you have pets). It is not a fee and it is not the landlord's to spend. Under the contract it can be used only to cover unpaid rent, unpaid utility bills, or damage beyond normal wear and tear. Ordinary wear, a faded wall, a worn floor, is not chargeable. If none of those reasons apply, the full amount comes back, typically within a short, agreed period after you hand over the keys.

It helps to know the difference between the kaució and a foglaló. A foglaló is an earnest-money down payment used mostly in property purchases, and it works very differently: if the payer backs out they lose it, and if the receiver backs out they owe double. A rental deposit is refundable security, not a forfeit. If a rental deposit is ever described to you as a non-refundable foglaló, that is worth a second look and a question, as it is not the norm.

Before you pay: keeping your deposit safe from day one

Smooth deposit returns almost always start with good records. The best moment to set this up is before you hand over a single forint, and it takes very little effort. Get these right and the return at move-out is usually simple for everyone.

• Sign a written contract, ideally before two witnesses. A written lease gives both sides clear terms; a verbal deal is very hard to rely on later. Signing in front of two witnesses (or having a lawyer countersign, or a notary certify it) gives the contract what Hungarian law calls full evidential force (teljes bizonyító erejű magánokirat), which makes it far clearer for both sides later. Reputable landlords do it this way as a matter of course.
• Put the deposit terms in writing. The amount, exactly what it can be withheld for, and how and by when it is returned after move-out. Clear terms are what make the return straightforward.
• Photograph everything at move-in. Dated photos and a short video of every room, including existing marks and wear. Make a written inventory (leltár) of the furniture and appliances and their condition, and have both sides sign it. This shared record means nobody is asked at move-out to pay for something that was already there.
• Read and record the meters. Electricity, gas and water readings on the handover day (birtokbaadás), photographed. Do the same when you leave.
• Pay rent and deposit by bank transfer. It creates a permanent record of what you paid and when. Cash leaves no record, so it is best to avoid it.
• Check who owns the flat. Before paying anything, confirm the person renting to you is the registered owner. You check this on the Land Registry (Földhivatal) title deed (tulajdoni lap), now pulled from the electronic land registry (e-ingatlan-nyilvántartás, E-ING) via magyarorszag.hu with Ügyfélkapu+ identification. An authenticated copy of a property you do not own costs about 4,800 HUF (around 13 EUR), a small price for peace of mind.

The step-by-step route if part of your deposit is held back

If move-out comes and some or all of your kaució is held back without a valid reason, there is a calm, well-worn route to getting it back. Take these steps in order. Each one is free or inexpensive until the last, and most cases are resolved well before the top.

Step 1: Ask, in writing, in a friendly way

Start with a short, friendly message. Reference the contract clause on the deposit, mention that you documented the flat's condition at move-in and move-out, and ask for the full amount by bank transfer by a specific date. Keep it polite and factual. A surprising share of landlords pay at this stage: often the delay was simply an oversight, and a clear, documented request is all it takes.

Step 2: The formal written demand, and the tax position

If there is no reply, or the answer does not match the contract, send a formal written demand, a fizetési felszólítás. This is a clear, dated letter that states the amount owed, sets a deadline (usually 8 to 15 days), and says that you will take the next formal step if it is not met. Send it so you can prove delivery, and keep a copy. Our bilingual template below is built for exactly this.

It is also worth stating, calmly, that your tenancy is fully documented. Rental income is subject to 15 percent personal income tax, and some small landlords who took rent in cash with no proper contract have not declared it. When a tenancy is fully documented, that income is visible to the tax authority (NAV), and a landlord in that position very often prefers to settle the deposit promptly. Keep it to the plain facts in the letter, without threats. It supports the formal steps rather than replacing them.

Step 3: The payment order (fizetési meghagyás)

If the deposit is still not returned, the standard legal route for a money claim in Hungary is the fizetési meghagyás, a payment order. It is issued not by a court but by a civil-law notary (közjegyző) through the national notarial chamber, MOKK, and you can file it online at fmh.mokk.hu for claims up to 30 million HUF, which covers any deposit. The fee is 3 percent of the claim, with a minimum of 8,000 HUF plus 1,600 HUF for each party, capped at 300,000 HUF. Once issued, the landlord has 15 days to object. If they do not object, the order becomes enforceable much like a court judgment, and you can move to enforcement. If they do object, the case converts automatically into an ordinary civil lawsuit. Many people find professional help worthwhile from this step on, though the online filing is designed to be usable without a lawyer.

Step 4: Court, and what it involves

A contested claim goes to the civil court. This is the slowest and most expensive step: it can take months and sometimes well over a year, you will usually want a lawyer (ügyvéd), and the losing side may be ordered to pay the other's costs. For a deposit of two to three months' rent, weigh the fees and time against the amount at stake. The good news is that few cases get this far: the records you keep at the start and an early written request are what settle most of them.

Checking a listing is genuine, and keeping the tenancy smooth

Most deposit questions are ordinary misunderstandings between two parties. Occasionally a listing is not genuine, or a tenancy hits a rough patch, and both follow a small set of recognisable patterns. If you notice any of these, slow down and check before any money moves; each one has a simple next step.

Two habits cover almost all of these: pay only after you have viewed the flat and checked ownership on the tulajdoni lap, and always pay by bank transfer. A listing that is not genuine depends on money moving fast and leaving no trace, so these two habits are usually all it takes.

When to get a professional

Most deposit questions can be handled by a calm, well-documented tenant without paying anyone. The written request and the formal demand are things you can do yourself, and they resolve the majority of cases. Professional help is genuinely worth it in a few situations: when the amount is large, when the contract terms themselves are in dispute, when the landlord has their own lawyer, or when you would like support with the Hungarian paperwork. A lawyer (ügyvéd) will often send a paid demand letter for a modest fee, and that letter alone frequently settles the matter.

We are slowly building a small, vetted circle of lawyers and agents our community trusts, with open reviews, so expats have a clear place to start. It is not live yet, and we would rather point you to the community than overpromise. If you have a deposit question now, other expats who have been through it are the quickest help.

Frequently asked questions

Do you get your deposit back in Budapest?

Yes. You may hear that deposits are rarely returned here, but that is not how the rules work. The deposit (kaució) is your money, held only to cover unpaid rent, unpaid bills, or real damage beyond normal wear. If none of those apply, the landlord returns it. A documented move-in is the best way to make sure yours comes back in full. If part of it is held back without a reason in the contract, there are clear steps, taken one at a time: a polite written request, a formal written demand with a deadline, a payment order (fizetési meghagyás) issued by a notary, and finally the civil court. Most cases are settled at the first or second step, once both sides look at the same records.

What can I do if my landlord has not returned my deposit?

Take it one step at a time. First send a friendly written request by email or message, referencing the contract and the move-in record and asking for a bank transfer by a set date. If there is no reply, send a formal written demand (fizetési felszólítás) with a clear deadline, usually eight to fifteen days, and keep proof of delivery. If it is still unresolved, you can start a payment order (fizetési meghagyás) through a Hungarian notary, which is the standard legal route for money claims. If the landlord formally objects to that, it turns into an ordinary civil lawsuit, where a lawyer (ügyvéd) is worth it. Keep every message, the contract, the move-in and move-out records, and proof of what you paid.

What is a fizetési meghagyás and how does it work?

A fizetési meghagyás is a payment order, the standard Hungarian procedure for pursuing a money claim such as a withheld deposit. It is issued not by a court but by a civil-law notary through the national notarial chamber (MOKK), and can be filed online at fmh.mokk.hu for claims up to 30 million HUF. The fee is 3 percent of the claim, with a minimum of 8,000 HUF plus 1,600 HUF per party, capped at 300,000 HUF. The landlord has fifteen days to object. If they do not object, the order becomes enforceable much like a court judgment. If they do object, the matter converts into a normal civil lawsuit.

Does the landlord's tax position matter in a deposit dispute?

It can. Rental income is subject to 15 percent personal income tax, and some small landlords who take rent in cash with no written contract have not declared it. When a tenancy is fully documented, that income is visible to the tax authority (NAV), and a landlord in that position often prefers to settle the deposit promptly. If it is relevant, state the facts plainly and calmly in your written demand, without threats. It supports the formal steps rather than replacing them.

How much does it cost to pursue a withheld deposit in Hungary?

The first two steps, a written request and a formal written demand, cost nothing to send yourself. A payment order (fizetési meghagyás) costs 3 percent of the claim, minimum 8,000 HUF plus 1,600 HUF per party, capped at 300,000 HUF. A lawyer to draft a demand letter typically runs a few tens of thousands of forints, and full representation in a lawsuit costs more. Because the sums involved are usually two to three months of rent, most tenants resolve things with the written request or demand, or at most the payment order, which is why documenting the tenancy up front is so worthwhile.

How do I check a rental listing is genuine (and avoid deposit scams)?

A few checks cover almost everything: view the flat before paying anything, confirm the owner on the title deed (tulajdoni lap), sign a written contract, and pay by bank transfer rather than cash. Signs to pause and ask are a request to pay before a viewing, a listing priced well below market with photos copied from another advert, an owner who is abroad and cannot meet, and a request for cash with no written contract. During a tenancy, read and photograph the meters on day one (including any prepaid meters, so you start with the right balance), and if water, power or heating is ever cut off, for example to encourage an early move-out, document it in writing straight away so it cannot later be treated as a reason to keep the deposit.

When should I hire a lawyer for a deposit dispute?

For a straightforward deposit of two to three months' rent, most tenants handle the written request and the formal demand themselves and only bring in a lawyer (ügyvéd) if it reaches a payment order that the landlord contests, or a full lawsuit. A lawyer is clearly worth it when the amount is large, the contract terms are disputed, the landlord has a lawyer, or you cannot follow the Hungarian paperwork. Many lawyers will send a paid demand letter for a modest fee, which alone often resolves the matter. General guidance, not legal advice; confirm your position with a qualified Hungarian lawyer.

Sources used for the deposit rules, the two-witness full-evidential-force contract, the land registry check, and the rental-income tax: Wagner Law, Tenancy law in Hungary, NAV booklet on taxation of letting property, and e-ingatlanugyvedek.hu on the tulajdoni lap. For the payment order (fizetési meghagyás) procedure and fees: MOKK, the national chamber of notaries, and the official filing portal fmh.mokk.hu. General guidance, not legal advice; confirm current rules and figures with a qualified Hungarian lawyer.