Living in Hungary
What happens if I decide to live and / or work in Hungary?
As part of our service we can put you in touch with advisers about
work permits and licences and permits in connection with the opening
of new businesses. They can advise on the importation of cars, furniture
and pets into Hungary, obtaining payment of your pension in Hungary,
healthcare issues, planning your tax affairs, National Insurance and
other related matters.
Can my UK state pension be paid to me in Hungary ?
Are there any other things I should do at the same time as I
buy a property?
- We believe that it saves a great deal of time, effort and money later
on if you now review your English Will and make a separate Hungarian
Will. For most people the cost of this is fairly small.
- It is highly advisable for any person who has a property in Hungary
but does not live there all the time to nominate a 'fiscal representative'.
This is a person to whom the tax authorities can send all correspondence
relating to your affairs in Hungary, secure in the knowledge that it
- The fiscal representative must be resident in Hungary and is usually
a lawyer, or your tax adviser.
- GLM can help with property insurance and will arrange for electricity,
water and rubbish collection charges to be transferred to your name.
GLM will notify the Town Hall that you own the property and register
for local rates, open bank accounts and register with the Hungarian
authorities for tax and other purposes.
- Non-residents are only taxed in Hungary on their Hungarian-sourced
income and gains.
- Personal tax rates go up to 55%, business and corporation tax is
at a rate of 16%.
- The currency is the Hungarian Forint (HUF)
- The Hungarian tax year runs from January to December. Tax returns
must be filed by 20 April following the year-end.
Local tax in Hungary is similar to the UK Council – this is
levied on the sq m of the property and vary according to the municipal
authority. Typically £0.40 per sq m. So for a 100 sq m property
this amounts to £40 / annum.
Property designated “Ferien” ( summer or holiday homes
) local rates are double the normal rate.
- 25% fixed tax rate for personal gains, but some qualifying investments
- There is a 5% reduction in gains per year for each year of ownership
after five years. Also, gains can be relieved where there is reinvestment
of proceeds within four years.
- The documented costs of acquiring and developing the property may
be deducted against income from the sale e.g. travel, service fees.
Hungary has a long standing double taxation treaty with many countries
making this situation straight forward. Your tax advisor in the UK should
be able to help
- Capital gains of companies are taxable as normal income but with
more generous deductions.
- There is no wealth tax in Hungary apart from the local annual property
tax that can go up to 3%
- This is at a rate of 900 HUF/m or 3% on buildings, and 200 HUF/m or
3% on land.
- There are ceilings to the amount of taxation.
Property Transfer Tax
Building plot and left undeveloped > 4 yrs – 10% tax
Building plot developed within 4 yrs – no tax
Holiday Homes 10% - as a consequence many buyers do not indicate the
property is for use as a holiday home
Everything else - 2% up to 4 million HUF ( around £11,700 ) and
6% anything over that.
The money is only due between 6 and 12 months after the property has
So assuming you purchase a property at 10 million HUF ( £29,500
) the acquisition tax would amount to
2% at 4 million HUF = 80,000 HUF
6% at 6 million HUF = 360,000 HUF
Total 440,000 HUF = ( £1,300 ) – approx 4.4%
As in many European countries, the price of a property is often understated
in the sales contract.
Disclaimer: Some of this information may be time sensitive and therefore
may change so all legal and financial information should be checked
independently. We can accept no responsibility for errors or ommissions
and you are expected to exercise due diligence when making any purchase
based on information contained in this website or supplied by GLM or