REALWorld Law

Taxes

Ongoing taxation

What taxes (if any) are payable by the owner of real estate on a recurring basis and can these be reduced or offset in any way?

Hungary

Hungary

Building tax is payable on the ownership of buildings. The taxpayer is the person who owns the building on 1 January of each tax year. Local authorities determine the level of taxation.

The maximum rate of building tax per annum is:

  • HUF1,1001 per square metre, or
  • 3.6% of the adjusted market value of the building

Vacant plots of land situated in inner-city areas may also be subject to tax, depending on the local authority.

The maximum rate of tax per annum is:

  • HUF2002 per square metre, or
  • 3% of the adjusted market value of the plot

The adjusted market value for buildings and vacant plots is 50% of the actual market value.

[1]  May be indexed by local authorities.

[2]  May be indexed by local authorities.