Property taxes in Hungary

Purchase taxes When buying real estate in Hungary, you must pay the acquisition tax, the amount of which varies from 2% to 4%, depending on the value of the property, its purpose, as well as whether it is new or secondary. This tax is the responsibility of the buyer. When purchasing an apartment in a new building worth up to 55,000 euros, no transfer tax is paid. If the value of the object is between 55,000 and 110,000 euros, then part of the amount over 55,000 euros is taxed at a rate of 4%. If the purchase amount is more than 110,000 euros, then a 2% tax is taken for the amount of 55,000 euros and 4% for the amount over 55,000 euros. VAT on the purchase of real estate in the amount of 27% is always included in the purchase price. The tax on the transfer of ownership of secondary housing is 2% on the first 4 million forints (about 14,000 euros) and 4% on the rest. When buying non-residential (garage, storage room) or commercial real estate, the tax will be 4% of the cadastral value. When purchasing land for construction in Hungary, the buyer is exempt from purchase tax. Also, third-country nationals, including Russians, must obtain permission to purchase real estate, the cost of which will be 250 euros. Regular taxes and expenses In Hungary there are no regular taxes on ordinary real estate, and there is an annual municipal tax on prestigious housing, as well as on property in resorts. The amount of these taxes depends on the municipality in which the property is located and is determined by the local authorities. For example, in the popular resort of Heviz, the highest municipal tax is between 100 and 150 euros per year, which can be paid in installments every six months. And further away from Heviz, the rate of this tax will already be lower. Utility bills are paid depending on the consumption of electricity, water or gas. You also need to pay for garbage collection monthly or every three months, regardless of whether the owner lives in the house permanently or not. In Heviz, for example, the cost of this service is 20 euros for three months. Also in Heviz, 1 cubic meter of water costs 4 euros, gas - 0.18 euros, electricity - 0.20 euros per kWh. Monthly utility bills for a house in Heviz with an area of approximately 200 sq. m will be from 150 to 250 euros for permanent residence. Community expenses for an apartment in Budapest with one room will be around 60-80 euros per month. Invoices for payment according to the meter data are received by mail on a monthly basis. Rental tax Non-Hungarian property owners who rent out their property in the country must obtain a tax number. Rental income tax is 16%. Sale and inheritance tax Income tax on the sale of real estate in Hungary is 25% of the difference between the purchase and sale of the property. If the house has been owned for more than five years, then the tax is not paid. In the case of property ownership for 4-5 years, 50% of the income received will be taxed, for 3-4 years - 70%, for 2-3 years - 90%, if less than two years, then the tax will be levied on the entire amount of income. Inheritance tax is not levied on real estate transferred to children or parents. However, upon the transfer of inheritance between spouses, only the spouse pays the tax. HomesOverseas.ru