Please find below the main taxes and fees associated with real estate transactions in Hungary.

Stamp duty

• - When the buyer is a company: 2% of the contract value when the buyer declares that his business is the trade of real estate properties and he intends to sell the apartment within two years from the purchase date.
• - When buying as a private person one will pay 2% for the first HUF  4,000,000 of the apartment purchase price, and 6% for the rest of the apartment price.
• - When buying a commercial property the stamp duty is 10% of the property price.
• - When buying a plot with commitment to build residential property on it: 0% (if the residential property is built within 4 years).

Income taxes

• - When the buyer is a company, the company shall pay 16% of the annual profit. A company owner which is a EU member is exempt from dividend tax. A company can claim all the expenses related to the property - renovation, property management costs, lawyer fees etc'.
• - A private person shall  pay 20% of the profit, if he/she buys another residential property within 4 years, he/she is entitled to reclaim the paid tax, in proportion to the difference between the buying and selling price of the residential property.

Value Added Tax (VAT)

• - The VAT is 20%. Individuals do not have to charge VAT when they sell their property.
• - The Vat rate for letting an apartment is 0%