cost of living in Hungary

Hungary is not super cheap in every way, but the destination is a good value for people who want to live a good life for less in Europe. Anyone moving to Budapest from a similarly sized city in Europe, North America, or Australia can easily cut their expenses in half. And the rest of the country costs less.

Estimates of how many expatriates live here range from 30,000 to 50,000 and there are enough in Budapest to support a business newspaper in English. So you won’t be all alone if you choose to move here.

Gary Lukatch was earning around $60,000 gross in New Mexico working in the financial industry, after having lived in a lot of other states before that. “When I moved to Budapest and began teaching English, my monthly net earnings after one year were around $600 per month, increasing to around $1,500 per month after, say, five years,” he says. “In short, I took a huge pay cut, but was 1000% happier.”

After teaching English in Budapest for eight years, he is retired, living a much better life than he could elsewhere on what he has to spend. “The cost of monthly house payments or rental, plus car costs alone, would be more than my monthly income, which is around $2,100 net,” he explains. “Here in Budapest, my monthly flat rental, plus utilities, averages around $400, right in the middle of town.” He says public transportation is excellent, so he doesn’t need a car. “I eat out several times a week and I still have enough money to travel wherever and whenever I want; I have now been to 53 countries, with at least five more trips scheduled this year.”

Australians Karen and Neil D. came to Budapest because her husband got a job offer in his industry and they thought it would be a great adventure. They had already lived in Poland and the Czech Republic though, so they and the four kids didn’t have to make a huge adjustment going to Hungary. “Hungary has been the cheapest of the three,” Karen says. They’ve watched the city get easier and easier as the years have gone by, partly through them adjusting but also because the level of English fluency locally has gotten steadily better.

Hungary joined the EU in 2004, but the country still uses the forint, which is a volatile currency. Prices quoted here are based on 220 to the dollar, but I’ve seen it as low as 198 and as high as 250. So check the current rate before cursing my name when you read this because prices have changed.

Eger

Eger, Hungary

The countryside of Hungary is very cheap, but few expats live in the rural areas unless they’re in the wine industry. Most choose to live in Budapest, around Lake Balaton, or in one of the smaller cities like Eger or Pecs.

Hungary got hit hard in the European economic crisis like many other nations on the continent, but has recovered faster. The official unemployment rate was 8% in mid-2014, which looks downright glorious compared to Italy, Spain, Greece, or Portugal. In many ways, this feels like a nation on the rise and the young are displaying something not seen much in the past couple hundred years of Hungary’s history: optimism.

Housing Costs in Hungary

housing costs BudapestThe residents of Hungary give their rent costs in hundreds, not thousands, and you won’t find many single people or couples paying more than $500 a month, even in the capital. When you get into smaller towns, you can get a large house for that. When I was last in Budapest, I asked several locals I talked to what they were paying per month for an apartment and the answers came in between $150 and $300. In the southern wine region I visited on my first trip a few years earlier, there were houses with a nice garden going for the same. I met an expat from New Zealand working for a winery by Lake Balaton. He was paying $210 a month for his two-bedroom apartment with a lake-view balcony.

The site Numbeo.com uses New York City for a price basis and compares costs of living around the world to that, using 100 as the NYC average. For rent prices, Hungary comes up a 10 and Budapest is 12. This will vary greatly by location, of course, but on average you can expect to pay 1/8 to 1/10 of what you would in your current situation if you’re living in New York.

Gary pays a shade under $300 for his apartment in District 5, one of the most desirable and central areas of the city. (If you’ve come to Hungary as a tourist, you’ve been there to see the sites.)

If you decide to buy something eventually, which you can do freely as a foreigner, “a typical apartment in Budapest will cost between 90,000 and 130,000 euros for 100 square meters.” Karen says. It’s a buyers market right now for a very bad reason: a lot of Hungarians took out loans to buy property in the pre-EU days and did it in Swiss Francs because that was a stable currency. Now they owe far more than what the property is worth because of the Swiss Franc’s rise. “So there’s a mass selling of properties because of exchange rate changes,” Karen says. Combined with the high unemployment so prevalent in much of Europe now, there are far more sellers than buyers.

Health Care Costs

In this country the medical care is good, the dental care is great. With the rise of cross-border medical treatment happening in many places in the world, Hungary has jumped on the trend with both feet. Many Europeans come here to have dental work done or to receive good medical care at a discount. I was actually having some dental problems while in this part of the world two years ago and started asking around for prices to get a new crown. I ended up not getting it done because of timing, but prices I was quoted ranged from $250 to $350 all-in. (In the United States, this can easily top $1,000.)

Getting a cleaning and check-up at the dentist is around $30, getting a set of x-rays about that much again.

The one time Gary had to have serious medical work done, the total bill was about 1/10 the price of what it would have been in the USA.

Budapest market

Food & Drink

you can normally have a very fine cloth-napkin dinner with wine for $15. If you eat at more humble places, a soup will be a dollar or two and main dishes range from $3 to $7.

When you shop in the market, prices are at the low end for Europe. You can get rolls for 10-25 cents each or a huge baguette for a dollar or less. Get 100 grams (around 1/5 of a pound) of good cheese for a dollar, 100 grams of good local sausage for $2, and a jar of pickled veggies for another dollar or so.

For a buck or less, you can generally buy 100 grams of any of these things in the market: raisins, peanuts, sunflower seeds, banana chips, or dried apricots. Or you can get a kilo of seasonal fruit or peppers, cabbage, potatoes, radishes, or carrots. I saw a big bunch of white asparagus for about a dollar when I was there. How much do you pay for that in your local Whole Foods?

“We probably spend $80-$100 a week on groceries, not including wine,” says Karen. “In Australia we could spend $300 or $400 a week easily.”

Hungarian wineHungarian wine should be known around the world, but the Soviet occupation days seriously hurt its reputation and the recovery will be a long one. So for now it’s one of the best quality-to-price values in the world. In many countries, expats complain about the difficulty of getting decent wine for a decent price, so if that’s a big priority, put Hungary on your list. (Along with Argentina and tropical duty-free Panama). You can find a decent table wine bottle in a store for $2, something quite good for $4 to $8. If you spend over $10 you might end up with something from a “winemaker of the year” who has adorned Hungarian magazine covers.

This once being part of the Austro-Hungarian Empire, you can get a killer coffee and pastry here just as you can in Vienna—but for literally 1/4 the price. After you do a double-take at your low bill in a wine bar, finish with a coffee and dessert for another nice surprise.

Transportation Costs

Getting around Hungary is relatively cheap by bus or train when you want to get out of town. Figure on $10-$12 for a trip of two hours, or $30 to go as far as you can possibly go within Hungary. Seniors and young children travel free. The longest ride on the suburban railway out of Budapest (30 kms) is just $2.50.

Hungary travel by train

Budapest has a metro and while it’s no real bargain on a ride-by-ride basis (around $1.55), a monthly pass that also works for the trams and buses is a good value at less than $50. If you’re of retirement age, you might squeak by for free.

Apart from the ride from the airport, taxis in Hungary are a bargain. In general you can get around the center of Budapest in a cab for $3 to $7. It’s around $2 to start and $1.25 for each kilometer, so it’s hard to spend $10 anywhere unless it’s a long haul. Like much of Europe, this country is set up well for those on a bicycle and some expatriates use a bike as their main means of transport. In Budapest there are lots of dedicated bike lanes and in the countryside there’s not nearly such an abundance of cars as you see in the capital.

Frequent promotions on the train system and Eurolines bus make international travel from here a bargain. If you plan ahead you can get to Vietnna for less than $20 or to beach locations of Greece, Bulgaria, or Croatia for around $60.

Other Costs

If you pay your own utilities they can vary greatly by the season. His utilities vary widely, from $30 to $200 a month. “My place is not the best insulated in town, so I pay more in the winter for heat. In the summer, it’s very low.” Internet is $15 to $30 depending on speed and if you want a great connection, you can usually get it in the cities. The lowest-priced speed is generally 5 mbps, which is fine for a lot of people.

The land of Liszt and Bartok has an abundance of cultural performances going on at all times, from high-brow opera in the capital to an annual festival of wine songs in the south each year. Performances that aren’t free are very cheap by European standards. “The theater is amazing here,” says Karen. “The cost of going to a ballet or opera can nearly bankrupt you in Australia. Here it’s for everyone. Tickets usually start at $5. If you buy really great seats on a weekend for a popular show it might cost you all of $25.”

Budapest coffee pastry

Visas in Hungary

Hungary is part of the Schengen Agreement covering much of the European Union, which means you can’t just stick around here on a tourist visa. You get three months upon entering the zone, but after that you have to leave the whole Schengen area for three months before returning. No problem if you’re only coming for the summer. Terrible if you want to settle down for longer.

To get residency without being tied to a specific employer, you generally have to show you’re doing work a local can’t do, like teaching English, or you have to show that you’re self-supported by income from abroad. You can see a sample of costs and documents needed at this site, which also warns you that requirements may change at any time: http://washington.kormany.hu/entry-for-long-stay

A work visa is good for a year and renewable. Expect to endure a lot of bureaucracy and if you don’t have a college diploma, it’s going to be even tougher. You will have to apply in your own country and will then have 30 days after entering Hungary to get the local paperwork sorted out.

Most people who want to stick around either get a work permit connected to a specific job and company, or a residence permit that’s not tied to one employer. “Americans can only get residency for two years,” says Gary, “then they have to renew.” He’s now looking into permanent residency though, which you can apply for after being in the country for three years. This costs money for a lawyer and requires a lot of additional paperwork. Most of the items need to be translated into Hungarian as well, plus you have to show proof of health insurance or buy into the Hungarian health care plan..

Do you have Hungarian blood? If so, you could be on the fast track to residency. If you have ancestral roots in the country, you can get real citizenship without giving up your original one, making you one of those enviable people with two passports. You have to speak Hungarian, but you can take intensive language courses while you’re living there and collecting paperwork. This is a back door into the EU, which would give you the ability to live elsewhere too.

Hungarian

I wouldn’t count on it…

Downsides

The political winds are blowing strongly to the right as I put this book together, with overt racism, anti-Semitism, and discrimination against minorities all rearing their ugly heads on a regular basis.

Hungarian is an especially tough language to crack, but you’ll often need at least some basics when you get outside the capital.

This is an excerpt from the upcoming book A Better Life for Half the Price, about cutting your expenses in half by moving abroad. Sign up here for updates on cheap living abroad.