Taxation in Hungary is divided between the central and the local levels. While central taxes constitute revenues of the state budget, local taxes are payable to the municipalities. Subject to certain limitations, the introduction and the setting of the rate of local taxes is the competence of individual municipalities.
Types of local taxes municipalities may impose:
A) taxes on property
- building tax
- land tax
B) communal taxes
- communal tax;
- tourism tax.
C) local business tax
Local taxes may be imposed on:
- the ownership of real estate located within the administrative area of the municipality or property rights relating to such real estate
- staying in the administrative area of the municipality as a non-permanent resident and
- regular or temporary business activities specified in the relevant act performed in the administrative area of the municipality.