Taxes in Hungary

Taxes in Hungary are relatively low in comparison to other European countries.

Transaction and registration taxes

Stamp duty on pre-owned property is 2% for the first HUF 4M (Hungarian Forint), about €13,000, of the purchase value. The remaining value is charged 4%. For new property, the first HUF 15M, about €48,000, is exempt and 4% is due on the remaining amount under HUF 30M, about €96,000.

Cadastral registration of purchase is HUF 6,000 (€19.20).

Stamp duty payment is delayed if a land buyer intends to build a house within four years of the purchase. If the buyer has a construction permit, they don’t have to pay stamp duty at all. However, if the house is not built and the permit is not issued within four years, the buyer must pay stamp duty and a fine for that period.

Ownership and income taxes

Real estate tax is annual and varies from 0% to 3.6%, depending on municipality. Generally, apartments are not taxed.

Income tax, including rental income from property, is 16%.

Capital gains, inheritance and corporate taxes

Capital gains tax is 25%. Depending on the period of ownership, there may be tax allowances from 10% to 70% of the difference between purchase price and sale price.

Inheritance and gift tax is 0–40%. Property transferred to direct descendants is exempt.

Corporate tax is 10% for revenue under HUF 500M (€1.55M) or 19% for revenue over this threshold.

Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property in Hungary.