Your partner as legal real estate agency, for all your investments and vacations in southern Transdanubia, the sunny thermal and holiday region of Hungary
close window  

What are the taxes I will have to pay?

Real Estate Purchase Tax

For family homes and all other estates you have to pay today 4% taxes. Attention: all this is not based on the purchase price of a real estate, but the fiscal value. Often purchase price and fiscal value are the same, but not always. The tax office may come to see the property for valuing it. There is no limitation for use of a family home as vacation house or living in a vacation home. When a house is registered as vacation house you find it in the exposés. Construction plots are also taxed with 4%. No rule without exception: if you build a family house hereon within four years you pay no Real Estate Purchase Tax (further limitations ally). Normally you are not obeyed to build a house on your property, but in some communities you have to. We inform you in the exposés if you have to.

Property Tax

This tax is in Hungary a community tax. So we can not tell you the exact amount of this tax. There are communities that handle a falt rate Property Tax, others have a complex tariff system, that also can be in advantage and disadvantage of the foreigner. Properties with a house are taxed according to the surface of the house, empty properties according to the surface of the property. The tax can be increased, if residential properties are not used permanently and thus the community for this house doesn't receive any tax allocation from Budapest, which is bound to the number of permanent residents. There is another taxing alternative: based on the value of the property, but seen the complicated calculation it is not often used in daily life. Maximum annual tax on family houses is about 45 Euro or 35 Pound a year. The tax is collected in two terms a year. 

Tourists Tax

Just as the Property Tax the Tourists Tax is a community tax. Many communities do not charge it. Owners of the properties and their family needn't to pay. Other users of the house have to pay, it doesn't matter whether the user has to pay rent or not. The amount may be depending on the lifetime of the taxed person.

Hungarian Income Tax

Here we look at the taxes for private persons only. We have to look onto different situations.

Selling real estate

We have two different regulations. Cheap is the tax on family houses (the registration in the deed determines this state). Hereon the tax has to be paid completely during the first two years. After two years 10% are taken off the money you earn, after three years already 40% of the income and after four years even 70%. After five and more years there is no tax on the income out of sales of family houses. Different is the situation on all other real estates, which are according to the deed no family houses. The first five years this entire amount is taxed. Between six and 15 years this amount is lowered with 10% every year. That means 90% in the 6th year and 20% during the 13th year. From this income you have to pay the income tax rate of 15%. After respectively 5 and 15 years there won't be any income tax. Warning: it is not possible to get taxable income tax-free by reinvestment. When the scheme of faster depreciation on family homes was introduced, this possibility has been abolished. But it is still often seen as the latest information in relevant pages. 

Rented house

When you let your house you have to pay a tax of 15% of the income. Of course all costs can be used to lower the income.

Regularly income 

Income as employee or an enterprise of your own will be taxed the same way. The income is taxed with 15%. For all income of retirement, regardless of what state this income is paid from, the tax rate is always 0%! This is an explicitly set special rate! This makes it especially for retired persons even more interesting to move to Hungary, as long as their home country do not already tax (depending on the tax treaty).

If you have larger plans for investments, we will regard your plans in all details.

Foreign income tax 

Hungary and all European and a large amount of other countries have a double taxation agreement. The content will differ from contract to contract. But we can tell you the general lines. Income from real estate will be taxed exclusively in the state, wherein the property is located. Others are regularly taxed according to your residency, which means primarily by the state in which you spend 183 days a year or more. 

Inheritance tax 

The inheritance tax on Hungarian real estate is quite low. Decendets (f.e. children) and spouse don't pay at all. Others for houses 9% and 18% for other estates.

This overview does not claim to be a complete picture of the Hungarian taxes, but is an introductory. Despite diligent search, we can not guarantee for the accuracy of this information.

close window


No menu visible?
Just click here:
open main page with menu

Magyar Kúria Real Estate Limited with office in Várong, nearby the thermal bath of Igal in Hungary, looks at herself not as real estate agent only, but mostly as service enterprise around the subject real estate, it doesn't matter whether used or for construction of your house or vacation-home, on your own or a by us purchased property, as a vacation-house, or for living there. On behalf a house in the tourist centres, as for example Siófok at Lake Balaton we can offer you your own farmhouse in a for village tourism interesting settlements, or just a townhouse in Kaposvár, Pécs or other towns. We will help you with your cure or vacation and also if you plan to invest between Balaton and Drava, we work for you in the komitats Somogy, Tolna and Baranya. For all questions you can contact our customers service.