Prostitution in Hungary has been legalized and regulated by the government since 1999. Under the law, prostitutes are classed as professionals who engage in sexual activities in exchange for money and are required to pay taxes and keep legal documents and submit themselves for regular health checks.
According to the regulations, local authorities are obliged to mark zones for legal prostitution if there is profound local need, but most local authorities refuse to acknowledge the need for such zones. There are strict conditions under which prostitutes are to operate, keeping distance away from schools or churches. It is illegal to run brothels.
Sex (like Taxi’s) should never be ordered on the street in Budapest. Street prostitutes operate in a number of areas around Budapest (we’ll focus on the tourist areas for now), for example around the Duna Embankment and streets around popular tourist venues and pubs.
If you approached on the street by a prostitute, do not let them touch you. In most cases they are not been playful, they are trying to steal your possessions.
There are a number of unofficial zones where prostitution is tolerated in Budapest, these are the area between Soroksari and Gubacsi Road. Also Dunakeszi Road and Gyogyszergyari Road in Kobanya have a lot of prostitutes during daytime hours.
Our advice would be to avoid street prostitutes as the health (and safety) risks are not worth it.
Some pics and videos of street prostitution in Budapest