Budapest tax questions

[PAB]

I own a commercial unit in Budapest.
I have recently been advised by my management company that I am liable for a “non-resident” tax. Apparently this is a realtively new tax that has come into effect in 2005 and applies to all property owners who are not resident in their property.
The amount seems relatively small (approx €200 in total for 2006 and 2007). Before I pay this tax, I would be grateful if anyone could advise if this is a legitimate tax for the owner.

I also have another question about tax on rental income in Budapest.
I have paid my 25% rental income tax to the Hungarian revenue authorities. My net rental income is still held in my bank account in Budapest. My understanding of the double taxation agreement between Ireland and Hungary is that I am not liable for additional tax in Ireland whether I hold my income in Budapest or transfer it to Ireland. Is this correct?

Apologies if these questions have already been covered in other posts.

 

[ClubMan]

Do you not have an accountant advising you about your tax liabilities in Hungary and Ireland?!

 

[budapest]

PAB, can you ask your management company what the Hungarian name for this tax is?

In relation to your second query, where you hold your Hungarian net rental income is not of primary importance. You can send it to Ireland if you'd prefer.

There is a double taxation treaty between Hungary and Ireland, which means that you can deduct the tax paid in Hungary from your Irish liability. Your Irish liability is not obvious from your post - e.g. you may be in the 41% tax bracket and would therefore be possibly liable to pay additional tax in Ireland. Your accountant will be able to advise on your specific situation, as deductions, etc. may be made on your Irish liability.