Our tax services team provides a wide range of expertise within the Real Estate sector
Whether you are an investor, builder or developer, surveyor, or architect, RSM Hungary can help you to be prepared for whatever the future brings in the real estate sector. From our Real Estate Tax Guide, you can gain a detailed analysis of tax issues affecting the property sector.
Overview of Hungarian Real Estate Tax
The major tax types applicable in the Hungarian real estate sector
| Tax type | Taxpayer | Applicable on | General tax rates* (2025) |
|---|---|---|---|
| Personal income tax(PIT) | Individuals | Rental and/or sale of real estate | up to 15% on varying tax basis (could be tax exempt) |
| Corporate income tax (CIT) | Companies | Rental and/or sale of real estate, (operational profit), sale of shares in domestic real estate holding company | 9% (or in case of share deal participation exemption if applicable) |
| Value added tax (VAT) | Companies (individuals in limited cases) | Rental and/or sale of real estate | 0% / 5% / 27% depending on the RE type and the applicability of R/C mechanism |
| Transfer tax (RETT) | Individuals/companies | Acquisition (and in limited cases the sale) of real estate | generally 4% up to HUF 1 billion, 2% for the market value above HUF 1 billion, max. HUF 200 million per real estate or RETT exemption |
| Land tax | Individuals/companies | In the case of owning plots | up to 3% of the fair market value or HUF 536.3/sqm (for FY2025) |
| Building tax | Individuals/companies | In the case of owning buildings | up to 3.6% of the fair market value or HUF 2,950/sqm (for FY2025) |
| Local business tax (LBT) | Individuals/companies | Rental (in limited cases also the sale) of real estate within business activity (operational revenue) | up to 2% |
* It is important that the exact tax rules and effective tax rates and tax payables are reviewed in each case separately as several further aspects might need to be considered when determining the tax bases and tax liabilities.
