Expenses when selling real property in Hungary - Tax & Fees
Capital gains tax on property sold by an individual is 25 %.
Capital gains tax on property sold by an individual is 25 %.
Agreements on double taxation between Hungary and most western countries prevent
from having to pay the tax again in one's own country.
There are currently no other obligatory costs when selling.
Your real estate agent’s fee shall be 3-5 per cent of the selling price + 20 % VAT = 3,6
% to 6 %), or advertisement expenses if you wish to sell yourself. (My fee is 3 %, which
is the lowest acceptable realtor's fee in Budapest when you are a member of real
estate agency associations).
As a seller, you only pay a legal fee if you wish to employ your own lawyer to monitor
the transaction. The lawyer counter-signing the Purchase Contract is customarily paid
by the buyer.
from having to pay the tax again in one's own country.
There are currently no other obligatory costs when selling.
Your real estate agent’s fee shall be 3-5 per cent of the selling price + 20 % VAT = 3,6
% to 6 %), or advertisement expenses if you wish to sell yourself. (My fee is 3 %, which
is the lowest acceptable realtor's fee in Budapest when you are a member of real
estate agency associations).
As a seller, you only pay a legal fee if you wish to employ your own lawyer to monitor
the transaction. The lawyer counter-signing the Purchase Contract is customarily paid
by the buyer.
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| - - - - - - - - - - - - - - - - - - - - - - - - - - Buying or Renting a Home in Hungary - - - - - - - - - - - - - - - - - - - - - - - - - - |
| Expenses when Selling Real Estate in Budapest, Hungary |
| © 2008 Budapest-Propertyfinder.com | About us | Contact us |
| Disclaimer: the article serves merely information purposes. Due to its extent, it is neither an all round information nor shall it be qualified as legal advice. |
| Capital gains tax, capital gains tax on property sold, expenses of developing, expenses of remodeling, profit when selling property, profit reinvested, taxable income, agreement on double taxation, double taxation agreement, Hungary, obligatory cost when selling, real estate agent's fee, legal fee, capital gains tax in Hungary |
From January 2008, rules on personal income tax and value added tax have changed with respect to real estate sales. |
One of the biggest changes to income tax is that the taxable period is cut from 15
years to five. This means that proceeds from the sale of a flat will be fully taxable in the
first year, while the seller will have to pay tax on 90 per cent of the revenues in the
second, 30 per cent in the third and fourth years, and will have no tax to pay in the fifth
year. read more >>>
years to five. This means that proceeds from the sale of a flat will be fully taxable in the
first year, while the seller will have to pay tax on 90 per cent of the revenues in the
second, 30 per cent in the third and fourth years, and will have no tax to pay in the fifth
year. read more >>>
New income tax and VAT rules:
The payable personal income tax after the revenue when selling your residential
property in Hungary is 25% , payable with your next year's taxes.
This tax amount can be lowered with some precentages, if the real estate you sold are
named on the title deed (tulajdoni lap) as residential house/dwelling (lakóház) or flat
(lakás).
If you sell your home or flat in the same year that you purchased it, you must pay the full
25% VAT.
If you sell in the 2nd year, you may pay 10 % less.
3rd year: 40 % less.
4th year: 70% less
5fth year and after: 100% less
so no VAT is to be paid if you sell your home or flat in the 5th year or after.
You can further lower your tax with invoices you kept from renovating the property. The
invoices should have your (the owner's) name on them.
The other side of the coin is that property acquisition discounts came to an end in
January, 2008. This means that using the money to purchase another house or flat
does not take away your tax paying obligations from now on. There is only one
exception: buying living quarters for yourself or for a near relative in a nursing home
home.
Source: www.parlament.hu
The payable personal income tax after the revenue when selling your residential
property in Hungary is 25% , payable with your next year's taxes.
This tax amount can be lowered with some precentages, if the real estate you sold are
named on the title deed (tulajdoni lap) as residential house/dwelling (lakóház) or flat
(lakás).
If you sell your home or flat in the same year that you purchased it, you must pay the full
25% VAT.
If you sell in the 2nd year, you may pay 10 % less.
3rd year: 40 % less.
4th year: 70% less
5fth year and after: 100% less
so no VAT is to be paid if you sell your home or flat in the 5th year or after.
You can further lower your tax with invoices you kept from renovating the property. The
invoices should have your (the owner's) name on them.
The other side of the coin is that property acquisition discounts came to an end in
January, 2008. This means that using the money to purchase another house or flat
does not take away your tax paying obligations from now on. There is only one
exception: buying living quarters for yourself or for a near relative in a nursing home
home.
Source: www.parlament.hu
