Changes in the taxation of apartment letting

napi.hu, 09.05.2017 – According to a new analysis published by one of the largest property trading websites of Hungary next year’s tax legislation will rearrange the HUF 110-130 billion apartment rental market. Rental prices in Budapest are not expected to grow anymore, but in other towns there is still room for expansion, especially on the demand side. This is not expected to cause any rise in prices because next year’s revised tax legislation will basically halve current taxes and duties levied on apartment letting revenues.

According to plans the 14 per cent health care contribution would be abolished on revenues exceeding HUF 1 million per year. Revenues will only be subject to 15 per cent personal income tax, which may mean that the current average rental fee of HUF 130-135 thousand will not increase – not least because clients cannot afford to pay more. The average rental fee already equals two thirds of the average salary in Hungary.

Lodger tax to be introduced? – The Ministry responds

napi.hu, 12.09.2016 – Rumours of a new “lodger tax” have been spreading lately, so the Ministry of National Economy issued a bulletin to set the situation straight. The letting of apartments has been subject to income tax since more than 25 years, so there is no news here. The rules are clear: offering your apartment for lease through an online accommodation marketplace qualifies as a taxable accommodation operation and the landlord must have a tax number and register with the local notary public. Letting an apartment or part of it for the long term, e.g. to a lodger, is also subject to tax, but the landlord does not need to have a tax number.

According to the Ministry the online accommodation marketplaces undoubtedly created new opportunities for Hungarian landlords. The National Tax and Customs Authority started a systematic analysis of the situation back in the spring of 2016. Based on the data collected from just a single online marketplace they found that in May there were 8299 properties offered by 5206 landlords.

Demand for housing was weak for most of 2023, but by the end of the year interest had increased, and from the beginning of 2024 the Csok Plus programme boosted the market

hvg.hu 16.04 In the first quarter of this year, home buyers took advantage of the new subsidy option in almost exactly one sixth of the loans, 16.7 percent. Of course, it was not only the Csok Plus programme that helped, but also the fact that interest rates have started to fall and inflation has also […]

Second highest house price increase in the EU since 2010 in Hungary

hvg.hu, 04 04 – In the last quarter of 2023, the average price of housing in the EU was 48 percent more expensive than in 2010 – Eurostat said. House prices in Hungary rose by 185 percent between 2010 and 2023. This is the second highest increase in the EU, with only Estonia 217 percent […]

Heirs left in the lurch at the probate hearing

napi.hu, 20.01 – Cryptocurrencies, social media profiles or documents stored in the cloud are increasingly common in probate proceedings. However, few people know that in lack of proper regulation and provisions, access to crypto currencies can be questionable for heirs, or that tech giants only allow access to deceased people’s data to those entitled to […]

Property and mortgage market data

napi.hu, 18.01 – More than a third of Budapest clients signed contracts for over HUF 20 million last year. Between September and December, for example, their share was 42%, which reflects an increase of 10 percentage points in 2021. The number of applications in this value range has increased steadily from quarter to quarter, to […]

Real estate prices have increased on the back of CSOK

napi.hu, 5 October – A study shows that the family home allowance (CSOK) has not improved the birth rate, but its amount has been incorporated into the price of homes. Three quarters of the subsidy was bunt up by the price rise, and the number of people having three children has not increased even in […]