Anyone completed Hungarian property purchase?

Hi

We bought an apartment in Szinyei Merse development late last year, paying 30% of full price to date. The development is due for completion around now, when we will pay balance due once snag list etc., completed.

Last week we received a letter from a company called Sigma, who they say are tax collection agents for the Hungarian Minister of Finance. They request we pay €2,013 within 30 days for tax & duties due from us as foreign investors living abroad in respect of a sale duty.

For anyone who has already completed purchase of property in Hungary, is this legitimate? The purchase price on the apartment is approx 100k.

Tnx

Valc

Yes, Sigma have a contract to collect this tax for the city. Not due until your name is entered on the land registry as far as I know. Your best way to deal with this is through your lawyer who is handling the sale for you, he is responsible for looking after your interests on this one.

As a general rule, any requests like this should be routed straight to your lawyer, in case he has already made arrangements to pay the stamp duty and may even already have collected it from you. Don't ever go it alone when you have a lawyer employed -- it creates too much confusion.

tnx for advice Auto320. Will fax it through to lawyer.

valc

the cut-off for stamp duty is €60k. it doesn't apply in your case, but just to be aware

I bought an apt in Budapest which closed in May. Stamp duty has not been requested yet & I was told that 6months was the expected time.

Mine is a classic apt. Perhaps it's different for new builds ?

About 6 months is normal, but I wouldn't panic if it runs a bit longer.

Sigma seem to sometimes jump the gun a bit on new developments -- I recall someone telling me that they get the full list from the City who in turn get it from the developer, or something like that. I know that they sometimes are a bit ahead of themselves anyway.

Thanks for that. My lawyer assures me she'll let me know in good time as she has asked the authorities to send her notification too, in case it just gets mailed to the apt & nobody hands it on.

It just seems unfair that they charge so far ahead for new apts. At least the 6 months gives you a bit of breathing space.