Question about tax return in Budapest

[PeterLynch]

Hi,

How do you write off rental property expenses in Budapest? What can or can you not write off(for exmaple management fees, apartment common costs such as heating etc). I got a book keeper to prepare my income tax but I don't think they have included expenses.

Thanks
Peter

 

[budapest]

There are two ways of submitting a tax return. One allows for expenses and the other doesn't. I assume that your accountant has chosen the latter for you. Both have their advantages and disadvantages.

 

[seánieboy]

im going the route that you are going peter not claiming any expences in Hungary i think this is the best way seeing as you are going to be paying 25% flat tax in Hungary. Now when you submit youre tax return at home in Ireland you can submit youre expences to the irish revenue look up leaflet it 70 on www.revenue.ie . these expences are treated the same as if you had a house here at home in Ireland.

for example saying you're getting a tax credit of 25% from Hungary and submitting that to the irish revenue and if you're on the high rate of tax in ireland at 41% and because theres a double tax agreement between the 2 countries you have to pay the remaining 16% tax in Ireland but if you submit you're expences to the irish revenue i.e. fixtures and fittings and all you're expences can be wrote off against it you possibly will only pay a minimal fee to the revenue in Ireland.
Where as if you went the other route of tax i don't think that would be a good way to go thats in my opinion only and please correct me if i am wrong as i have gone down this 25% flat tax rate also