Are international owners of Hungarian property required to pay tax?
If you earn rental income from property in Hungary, you’re required to declare that income and file an annual tax return — regardless of whether you’re a resident of Hungary or not.
At PTI Returns, we specialise in helping international property investors meet their Hungarian tax obligations with ease.
Our experienced tax advisors will:
- Prepare and file your Hungarian property tax return accurately and on time
- Guarantee full compliance with Hungarian tax regulations
- Ensure you never pay more tax than you need to
- Help you navigate double taxation agreements to avoid being taxed twice on the same income
Our Hungarian tax services & fees
Tax number service fees or tax registration
This is a lower fee option which is available instead of the Personal Income tax return option above. If you choose this option a notional % deduction will be taken instead of actual expenses incurred. This option is usually beneficial for individuals if the level of expenses is low, or if no valid supporting documents are available (single or married – one property).
This fee is due for the second and each subsequent property if applicable.
This charge is relevant where an additional owner must be added to the tax return.
The Hungarian tax office does not release automatic assessment notices. We can assist with tax clearance certificate applications if required.
This fee will apply if you require Property Tax International to obtain some documents on your behalf, excluding bank and mortgage statements.
Tax audit assistance pricing is determined by case complexity. For more details, reach out to a member of our international tax team.
This fee is obligatory and due for each year of submission. It covers postage, phone calls, photocopying etc.
PTI Returns can support you in transferring your tax payments to the Hungarian authorities. The fee for this service is €30.
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.
Discounts
Multiple years discount – 10%
Available where returns for two 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.
Important tax information for Hungarian property owners
Rates of tax withholding
Individuals who own rental properties have the option to calculate their rental income tax in one of two ways:
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.
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 favourable option for taxpayers who have significant expenses, such as property taxes, maintenance costs, and utilities.
Non-residents 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.
Rental income tax deadlines in Hungary
- Tax year – The Hungarian tax year runs from 1 January to 31 December.
- Tax deadline – The income tax deadline in Hungary is 20 May of the year following the relevant tax year. 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.
Hungarian rental income tax FAQs
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).