Budapest is in Europe.
Budapest ( [ ˈbudɒpɛʃt ] ) is the capital and most populous city of Hungary and one of the largest cities in the European Union . It is the highest ranked Central and Eastern European city on Innovation Cities Top 100 index . Budapest attracts 4.4 million international tourists per year , making it the 25th most popular city in the world and the 6th in Europe . Budapest is cited as one of the most beautiful cities in Europe , ranked as the most liveable Central and Eastern European city on EIU 's quality of life index , ranked as `` the world 's second best city '' by Condé Nast Traveler , and `` Europe 's 7th most idyllic place to live '' by Forbes . Hungary ( [ ˈhʌŋɡəri ] Magyarország [ ˈmɒɟɒrorsaːɡ ] ) is a unitary parliamentary republic in Central Europe .