Real estate transaction costs and taxes in Hungary

Cost

Time-based cost plus out-of pocket expenses (e.g. administrative fees, copies).

VAT

27%

Cost

Time-based cost plus out-of-pocket expenses (e.g. administrative fees, copies).

VAT

27%

Cost

Time-based cost plus out-of-pocket expenses (e.g. administrative fees, copies). Administrative fee is approximately EUR 3-10 per land registry extract, and approx. EUR 10 per topographical map.

VAT

27%

Cost

EUR 10–EUR 50

VAT

Nil

Cost

Negotiable

VAT

27%

Cost

Negotiable

VAT

27%

Cost

The sale of building plots and so-called “new buildings” which is subject to VAT. The sale of any other property is VAT exempt with the right to opt for taxation.

VAT

27%
5% for “new buildings” up to 150 square meters in case of flats, and up to 300 square meters in case of houses.

Cost

1. 4% up to a market value of HUF 1bn, and 2% for the excess, with an overall cap of HUF 200m.
2. Residential property (Apartments): 4% of the market value of the property which is not reduced by the liabilities.

The direct or indirect acquisition of at least 75% of the shares in a company owning real estate located in Hungary is also subject to transfer duty (see Section 2 (transfer Duty) for details).

Sale by a company: subject to general corporate tax of 9%.
Sale by an individual: 15% personal income tax (subject to exemptions). Further rules will apply for the sale of properties reclassified from agricultural land within five years of the reclassification.

Foreign companies deriving capital gains from a “real estate company” are also subject to Hungarian corporate income tax at 9%, provided that they are resident in a country in respect of which the relevant double tax treaty allows Hungary to tax the capital gains (or with which Hungary has no treaty).
Sale of shares by a Hungarian resident private individual: 15% personal income tax.
Foreign resident private individuals deriving capital gains from a “real estate company” are also subject to tax at 15%.