Hungarian Property Tax Services for Non-Residents

Tax services
Tax Information
FAQs
Tax Rates

Tax services

Hungarian Tax Services & Fees

FILING SERVICES ARE OFFERED TO NON-RESIDENTS IN HUNGARY.

If you are a non-resident landlord with rental income in Hungary, it is mandatory to file income tax returns in both Hungary and your home country.

Let our experienced tax advisors handle this responsibility for you, ensuring compliance with all filing deadlines and preventing penalties or interest charges.

We can also assist you in navigating double taxation agreements, ensuring you are not subject to taxation twice.

Property Tax International (PTI Returns) serves investors and rental property owners globally.

Our knowledgeable tax advisors specialize in local tax laws to minimize your tax liability by ensuring you benefit from all entitled reliefs.

Simplify your non-resident landlord tax return with Property Tax International —saving you time and reducing stress.

Request a no-obligation consultation with a tax advisor and conveniently file your Hungarian property tax return online.

Initial documents review – €150

Tax number service fees or Tax registration – €100 per person

Hungarian personal income tax returns – real expenses regime – €260

Hungarian personal income tax filing – simplified regime – €200

Additional property – €75

Additional owner – €75

Tax clearance certificate – €50

Documents retrieval fee – €50

Assistance with tax audit – starts at €99

Administrative fee – €30

Assistance with tax payments – €30

Multiple years discount – 10%
Available where returns for 2 or more tax years are required. This discount is applicable to the annual fees excluding any once-off fees and administrative fees and does not apply where other discounts/reductions have been granted.

Notes:

All fees are inclusive of VAT.
Prices are based on the provision of information in pre-agreed format – a surcharge of 20% may be applied for disorganized files.
Prices are based on the provision of necessary backup documentation only – the inclusion of unnecessary documentation may result in the application of an additional charge.

Request a free callback from a tax advisor

+353 1 635 3722

Claim Your Hungarian Rental Income Tax Now

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Tax Information

Rental Income Tax in Hungary

Rental income from residential property in Hungary is subject to tax, regardless of whether the owner is a resident of Hungary or not.

If you own a rental property in Hungary, you have an obligation to declare this income by submitting a tax return to the Hungarian tax office each year. Foreigners must submit a rental income tax return in Hungary and their home country.

Our experienced property tax advisors can help you navigate double taxation agreements, ensuring you don’t get taxed twice.

An individual is considered a non-resident in Hungary if s/he does not spend 183 days or more in any tax year in Hungary or does not have their primary residence there.

Individuals who own rental properties have the option to calculate their rental income tax in one of two ways:

1. Flat tax:

This option involves paying income tax on 90% of the gross rental income.

This can be a simpler option for taxpayers who do not have detailed records of their rental expenses.

The flat tax rate for rental income in Hungary is 15%. This is the same rate that applies to other types of income, such as wages, salaries, and business profits.

The option of using a flat tax rate for rental income is available to both Hungarian residents and non-residents.

2. Actual expenses:

This option involves subtracting the actual expenses incurred in connection with the rental property from the gross rental income.

This can be a more favorable option for taxpayers who have significant expenses, such as property taxes, maintenance costs, and utilities.

Nonresidents are only subject to taxation on their income earned in Hungary. Couples who are married pay taxes separately.

It is important to consult with a tax advisor to determine which option is most advantageous for your specific situation.

Submit Your Hungarian Property Tax Return Online

Property Tax in Hungary

Property owners in Hungary pay a local tax on real estate, called property tax (“ingatlanadó”). There are two types of property tax: local land tax and local building tax.

The maximum rate of the local land tax is 3%, and the maximum rate of the local building tax is 3.6% of the market value of the real estate.

Municipalities set their own tax rates, but they cannot exceed the maximum rates. The average cost of property tax in Hungary is €3 per square meter per year.

There are exemptions for certain property owners and property types. Property tax is payable to the municipality where the property is located. Non-resident property owners may also be liable for property tax, but there may be tax treaties that provide some relief from tax.

Capital Gains Tax in Hungary for Non-residents

Non-resident individuals who sell real estate pay a 15% tax on the profit they make. You can subtract costs like property purchase expenses, improvements, and transfer fees from your earnings to figure out your net profit. If you don’t have proof of these expenses, the 15% tax is applied to a quarter of your total earnings.

Your taxable gain decreases by 10% each year starting from the sixth year after you buy the property. So, in the fifteenth year, you won’t have any taxable gain left. For example, you get a 10% deduction in the 6th year, 20% in the 7th year, 30% in the 8th year, and so on.

Hungary Income Tax for Foreigners

Residents are required to pay taxes on all their income, regardless of its source. Non-residents, on the other hand, are only taxed on income earned within Hungary. The top income tax rate stands at 15%.

Income generated from renting property is subject to a fixed 15% tax rate. To determine the taxable income, you have two options: subtract the documented and actual expenses involved in renting, like lighting, maintenance, and administrative costs, or deduct a flat 10% of the gross income as a notional deduction (representing a 10% expense ratio).

FAQs

Who should file a landlord tax return in Hungary?

What is the rental income tax rate in Hungary?

What is the Hungarian property tax rate?

What sort of tax number is used in Hungary?

Am I obliged to apply for a tax number even if I am a non-resident?

What are the required documents for filing a landlord tax return in Hungary?

Are capital gains derived from the disposition of real property taxable in Hungary?

Request a free callback from a tax professional

+353 1 635 3722

FILE YOUR NON-RESIDENT PROPERTY TAX RETURN ONLINE

Tax Rates

Got questions? Request a free callback now

+353 1 635 3722

Tax Year	1st January – 31st December
Income Tax Rate	15% over net gain.
Income Tax Deadline	20th May 2024 The deadline for filing a Hungarian tax return is 20 May of the year following the tax year (i.e. for 2023 the deadline will be 20 May 2024). There is an extended deadline to 20 November for individuals who file a declaration to the Hungarian tax office stating a reasonable excuse why a return cannot be filed.
Capital Gains Tax Rate	15%
Dual Tax Agreement with Ireland	Yes
Dual Tax Agreement with the UK	Yes

Tax Return Services For Non-Resident Landlords

Property Tax in Hungary

Hungarian Tax Services & Fees

Initial documents review – €150

Tax number service fees or Tax registration – €100 per person

Hungarian personal income tax returns – real expenses regime – €260

Hungarian personal income tax filing – simplified regime – €200

Additional property – €75

Additional owner – €75

Tax clearance certificate – €50

Documents retrieval fee – €50

Assistance with tax audit – starts at €99

Administrative fee – €30

Assistance with tax payments – €30

Request a free callback from a tax advisor

Rental Income Tax in Hungary

Property Tax in Hungary

Capital Gains Tax in Hungary for Non-residents

Hungary Income Tax for Foreigners

FAQs

Who should file a landlord tax return in Hungary?

What is the rental income tax rate in Hungary?

What is the Hungarian property tax rate?

What sort of tax number is used in Hungary?

Am I obliged to apply for a tax number even if I am a non-resident?

What are the required documents for filing a landlord tax return in Hungary?

Are capital gains derived from the disposition of real property taxable in Hungary?

Request a free callback from a tax professional

Tax Rates and Deadlines

Request a callback from our team