New Real Estate Tax in Hungary in 2010

Hi all,

Just wondering does anyone know about this? Have just received an email from my management company about this..looks like an annual property tax with different tax rates depending on value of property. Management company say 0.25% of value is likely rate for me but they dont have detail as yet as to who values and what is taken into account and whether it can be used against income tax etc...


Any takers???Is this just introduced?

Did not hear of this tax. Would this be on top of the local tax (there is a local tax in some districts but not all)

Yes, this is separate from the local tax. Most of the important information is known about this value-related property tax, which is applicable already this year.

This online calculator will let you figure out how much you should pay, based on if it's your first, second, third property in Budapest, what size it is, what district it's located in, market value (you can apparently argue that APEH use this value instead of the general district value - this still seems to be somewhat of a grey area as APEH have stated they will value based on 'market value' but seem to be applying a district value for now).

[broken link removed]

Things to enter before clicking 'SZAMOL':
1. Ingatlan fajtája: Enter 'Egylakasos'
2. Hányadik ingatlan?/First, second or third property: For this, choose 'Elso Ingatlan (nem lakott), assuming you just have one property in Hungary and that you don't live here.
3. Ingatlan Helye: Choose the district it's in.
4. Hasznos alapterület/Size
5. Forgalmi érték/Market Value: Enter this if you know it. Alternatively the average district value will be used.

(To come closer to the APEH 'market value' if they use this, first fill in the lower section 'Korrekciós értékek' before copying this amount from the
'Korrigált számított érték' into the 'Forgalmi érték' section and clicking 'SZAMOL').

BUDAPEST... your a gent and a scholar... KARMA IN ABUNDANCE, Rgds from Cork

Hi all,

How would one actually pay this tax? Will the tax office send out a bill to each address or do you have to go to the tax office yourself? I don't have a management agency looking after my property, by the way.

Any help greatly appreciated

Many thanks Mr. Budapest as always

For the valuation of the property, is this just for the apartment itself or would you also need to include any separate parking spaces/storage etc? Thanks

Today the Hungarian Constitutional Court suggested that a Hungarian property tax is illegal, so it looks like (for now at least) there won't be one:
http://www.portfolio.hu/en/cikkek.tdp?k=2&i=19373

Picked this up on the wire this morning as well, very interesting. It seems they don't have a problem with the concept of a property tax, more an issue with the self-assessment aspect and how you could be fined for misrepresenting the market value (which of course is very subjective).

Has a national self-assessment property tax been successfully introduced anywhere in the world? When it was announced that the Hungarian and Irish governments were looking at this, I was finding it difficult to understand how they would roll it out.