Duties payable when purchasing immovable property

When buying immovable property in Hungary, tax on the transfer of property for consideration is payable.

Kulcsszavak: purchase of immovable property, land register, document, B400, market value, duty

When purchasing immovable property

the duty imposed by the National Tax and Customs Administration of Hungary (NTCA) has to be paid.

In the event of a failure to comply with, or the incomplete or late compliance with the obligation to report the acquisition of assets, a penalty shall be payable, the amount of which may not exceed HUF 200 000 for private persons and HUF 500 000 for non-natural persons.

A late penalty is payable in case of a default on the payment of the duty, the rate of which is one 356th part of the base rate of interest as defined by the central bank, plus 5 percentage points, after each calendar day of default.

As a general rule, the acquisition of the immovable property has to be reported to the district land register within 30 days of the sale contract. After completing the land registration procedure, the land register shall forward the documents to the NTCA.

Within 60 days thereof, the NTCA shall determine the amount of duty to be paid, which is payable within 15 days of the decision becoming final.

The document on the acquisition of the immovable property (e.g. sales contract) and the form used by the NTCA for reporting duties (form B400).

4 % of the market value of the acquired immovable property, including encumbrances, if the market value does not exceed HUF 1 bn, and 2 % for the part of the market value that exceeds such amount, but no more than a total of HUF 200 million.

The district land register with competence at the location of the immovable property, NTCA

An appeal may be submitted to the NTCA Appellate Directorate against the NTCA’s decision of first instance, and a supervisory measure may be requested on one occasion within one year of the decision becoming final, with a reference to an infringement. Duties are payable for the appeal and the application for a supervisory measure.

 The taxpayer may contest the legality of the appellate decision passed by the NTCA Appellate Directorate in an administrative lawsuit.

https://en.nav.gov.hu/data/cms561364/05___4_AMOUNTS_AND_RATES_OF_DUTIES_(2021).pdf

 

https://en.nav.gov.hu/data/cms527696/20___AMOUNTS_AND_RATES_OF_DUTIES_30062020.pdf

 

https://en.nav.gov.hu/data/cms527695/19___DUTY_ON_QUID_PRO_QUO_TRANSFER_OF_PROPERTY_30062020.pdf

 

A number of tax advantages/exemptions may be enforced when purchasing immovable property, information on which is contained in the above information.

 

 

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Act XCIII of 1990 on Duties

Act CL of 2017 on the Rules of Taxation

Act CLI of 2017 on the Code of General Administrative Procedure

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