Lawyer's addressLövőház utca 20/A.
1024 Budapest Hungary

Attorney's phone number Tel.: +36 1 316 9233
Law office's fax number Fax.: +36 1 336 0107
Attorney's office e-mail

Residential property market report, 12.05.2017 – According to a recent residential property market report published by MNB, the National Bank of Hungary, prices in Hungary grew by 15.4 per cent on average last year. This increase can continue at a more subdued rate in 2017. Budapest witnessed the highest increase with 22.5 per cent, which is, however, still lower than the 25-30 per cent seen in previous years. Domestic residential property market is still shaped by rising prices and a growing turnover, and the supply side responded to increased demand with a significant boost of construction activity. The report, which was published for the third time this year, says the increase in demand was supported by favourable household income and labour market trends and low interest rates. MNB experts say neither the increasing volume of residential loans nor the growing average apartment prices are a sign of overheating.

How to calculate profit before tax from a long-term apartment lease?, 13.09.2016 – There are two ways to calculate profit before tax from a long-term apartment lease. First, the landlord can deduct every verifiable cost item (cost of utilities, renewal expenses etc.) and depreciation from the revenue earned.

Second, the landlord can deduct a flat-rate 10 per cent cost ratio from the revenue earned. A tax advance shall be paid on a quarterly basis and the revenues shall be entered into the tax return under “revenue earned from non-employment activities”. The tax rate is 15 per cent. If in any tax year a private person’s revenue earned from property rental exceeds HUF 1 million, then 14 per cent social security contribution must also be paid.