Popular investment vehicles in Hungary

Updated on May 2022

Investment vehicle

  • Private real estate investment fund (in Hungarian "zártkörű ingatlan alap")

1. Form

  • Contractual

2. Tax Treatment

  • Exempt at fund level
  • Tax at investor level
  • Gains from sale/disposal of fund units taxable at investor level

3. Transfer Tax

  • Preferential real estate transfer tax of 2% (general rate 4% up to 1 billion HUF and 2% for the balance) (calculated on the market value of the real estate, e.g. usually the purchase price is accepted as market value)

4. Listable

  • No

5. Open- or closed-ended

  • Open- or closed-ended depending on type of the fund

6. Regulatory Supervision

  • Both the fund and the fund manager are regulated and licensed by the National Bank of Hungary

7. Investor Restrictions

  • No

8. Best Feature

  • Preferential stamp duty, no corporate income tax, no local business tax, list of the investors are not available publicly

9. Worst Feature

  • Statutory investment restrictions
  • Fund rules are subject to regulatory approval

10. Best Used For

  • Real estate

Disclaimer: “Information in this guide for any particular country or topic may have been subject to change since the date to which it was prepared”

Portrait ofGábor Czike
Gábor Czike
Partner
Budapest