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Generic Tax Name Property transfer tax
Tax name in the national language Visszterhes vagyonátruházási illeték
Tax name in English Property transfer tax
Member State HU-Hungary
Tax in force since 1991/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Act 93 of 1990 on duties.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments
 
Geographical Scope

The Republic of Hungary.

 
Taxpayers

The person acquiring the property.

 
Tax object and basis of assessment

The obligation to pay duties shall apply to immovable properties and the following rights of pecuniary value and movable property:

  • acquisition of rights of pecuniary value related to real property, and acquisition of property through the termination of such rights;
  • cession of the exercise of usufruct enjoyed in respect of real property;
  • acquisition of movable property at an auction conducted by an authority;
  • acquisition of ownership or usufruct of automobiles and trailers;
  • acquisition of the ownership of, or rights of pecuniary value pertaining to, building structures not qualifying as real property and located on public areas;
  • acquisition of a license for an independent medical practice;
  • acquisition of securities under contract of inheritance;
  • acquisition of shares in companies holding inland real estates.

 

The basis of the property transfer tax is the market value of the acquired property reduced by the value of use or usufruct, while the usufructuary or user pays a tax on calculated value of usufruct or use, in case of acquisition of shares mentioned above the taxbase is the market value of the real estates owned by the company.

 
Deductions, Allowances, Credits, Exemptions

The following shall be exempt from the property transfer tax:

  • acquisition of ownership (ownership share) of a plot of land suitable for the construction of a residential house, and rights of pecuniary value created on such real property, if the party acquiring the property builds a residential house on such real property within 4 years of the date of submission of the contract for dutiable purposes. The party acquiring the property shall have until the order concerning payment of the duty becomes definitive to notify the Duties Office regarding his intention to build a residential house, if the living place of the flat(s) located in the built residential house hits at least 10% of the maximum area available for building;
  • acquisition of the management right of residential property;
  • acquisition of the management right of water facilities and its components serving public purposes; 
  • acquisition by the nature conservation administrator of the right of management of nature conservation areas owned by the State;
  • acquisition of the right to manage treasury assets;
  • when a new residential property or a share in such property (with a market value of HUF 15 million or less) is purchased, if it has been built or developed by a company for the purpose of resale, including if developed by the conversion of a building that was not registered in the real estate register, or by expansion (e.g. addition of a mansard), and was not used as a residential house or dwelling place. If the market value of the new dwelling place is less than HUF 30 million and the buyer is unable to provide proof of the sale of another property, of the duty established under Subsection (1) of Section 21 the sum that would be due if the market value of the dwelling place was HUF 15 million need not be paid. In the case of obtaining a share in such a dwelling place the buyer shall be able to claim the allowance based on the HUF 15 million in proportion of the share he has obtained in the dwelling place;
  • acquisition of property by preferred transformation;
  • acquisition of property by preferred barter of shares;
  • acquisition of real property received in exchange for expropriated real property, or real property affected by mine damage, or, up to the amount of indemnification due to the party, purchase of real property by the person so indemnified, also including the acquisition of identical rights from the amount of indemnification received for the termination of rights due to another person in respect of such real property;
  • purchase of real property from the purchase price of real property purchased for a public purpose that may serve as the basis of expropriation, also including the purchase of identical rights from the purchase price for the termination of rights due to another person in respect of such real property;
  • acquisition of the right of ownership in an automobile or trailer by an entrepreneur entitled to sell automobiles and trailers as its main business activity according to the statistical code number, or by an entrepreneur engaged in the leasing of automobiles as its main business activity;
  • acquisition of the right of ownership or usufruct rights in housing units owned by a local government or by the state by a person having the right to purchase pursuant to Subsection (1) of Section 45, furthermore, by a person having the right of first refusal pursuant to Subsections (1)-(2) of Section 49 of Act LXXVIII of 1993 on the Rules Applicable to the Tenement and Alienation of Housing Units and other Premises;
  • acquisition of ownership of arable land based on an agreement concluded in the framework of voluntary land exchange with the purpose of integration of lands;
  • when wealth is acquired by a law office through transformation (merger, demurrer), when the subsequent office (offices) is (are) construed as the successor(s) of the former one;
  • the purchase of arable land, as laid down in specific other legislation, by a private individual engaged in agricultural activities who is registered, as verified, by the Agricultural and Regional Development Board on condition that the private individual agrees not to alienate this arable land for a minimum period of five years nor to register any right on the land, and to use the arable land for agricultural purposes as a private entrepreneur or a small-scale agricultural producer. The buyer shall file a statement to declare his commitment to these requirements to the Duties Office before the operative date of the payment order. In the event the private individual alienates the arable land inside the five-year time limit, or registers any right on it, or uses it for purposes other than agricultural the duty otherwise due shall be charged and collected as doubled;
  • acquisition of real property and shares in companies holding inland real estates on the way of transferring a whole business branch - with conditions;
  • if the party acquiring a residential property was granted a home building allowance at the time of purchase, the amount of such allowance, with the exceptions set forth shall be deducted from the market value;
  • in the case of exchanging ownership of housing units, the basis of the duty shall be the difference of the full market value of the housing units exchanged, including encumbrances;
  • upon acquisition of ownership rights in real property by estate agency or an entrepreneur whose main business profile is leasing services of real properties, according to sell or make a contract to leasing within 2 years from the announcing the acquisition, the rate of duty, shall be 2% of the market value of real property without any encumbrances deducted;
  • the rate of the duty payable on real property acquired by a credit institution for a period of no longer than three years, in order to mitigate or eliminate a financial loss in the course of a loan barter transaction for real properties, or through a liquidation or execution proceeding against its debtor shall be 2% of the market value of the real property without any encumbrances deducted;
  • transfer of real estates and shares in companies holding inland real estates between related enterprises; (with conditions in case of transfer of real estates)
  • acquisition of arable land, other agricultural properties or tools used in agricultural labour on the way at transferring the whole farm with conditions;
  • in respect of the first acquisition of residential property, at the time of inception of the duty payment obligation, young adults under the age of 35 shall be entitled to an allowance of 50%, if the market value of the entire residential property does not exceed HUF 15 million, and irrespectively of the market value, they can ask 12 months interest free instalment for the duty.
  • acquisition of ownership of a plot of land suitable for the construction of a sport settlement and rights of pecuniary value created on such real property by organization which deals with sport, if the party acquiring the property builds a sport settlement on this real property within 4 years of the date of submission of the contract for dutiable purposes, and with other conditions.
  • acquisition of ownership of a sport settlement and rights of pecuniary value created on such real property with conditions
  • acquisition of ownership of a motor vehicle (and rights of pecuniary value) powered solely by electric motors
  • acquisition of property when an individual company transforms to a private limited liability company
  • the purchase of residential property by private individual if it’s a right of redemption from the National Asset Management Agency
  • in case of acquisition of ownership of real property and rights of pecuniary value created on real property and shares in companies by Regulated Real Estate Investment Companies, -pre-companies and acquisition of ownership rights in real property and rights of pecuniary value created on real property by the special purpose companies of real estate companies and pre-companies, the rate of duty, shall be 2% of the market value without any encumbrances deducted;
  • if the purchaser is the vendor's next of kin or spouse
  • acquisition of residential property by private individual, if this residential property is cheaper than the private individual’s another residential property, that the private individual sells in 1 year from the acquisition.
  • leasing transactions, if the lessee was the previous owner 
 
Rate(s) Structure

The general rate of the property transfer tax shall be 4 % of the market value of the property acquired, including encumbrances, unless otherwise provided for by this Act. In case of real estates above HUF 1 billion of the market value the rate of the tax is 2 %, but maximum HUF 200 million forints/real estates.

Unless otherwise provided for by this Act, the basis of the property transfer tax for the acquisition of residential property shall be the market value of the residential property.

In case of the acquisition of ownership of a motor vehicle, the tax rate depends on the performance of the vehicle expressed in KW and the year of manufacturing of the vehicle.

the performance of the vehicle

 the year of manufacturing of the vehicle

(kW)

 0-3 years

 4-8 years

over 8 years

 0-40

 550 Ft/kW

 450 Ft/kW

 300 Ft/kW

 41-80

 650 Ft/kW

 550 Ft/kW

 450 Ft/kW

 81-120

 750 Ft/kW

 650 Ft/kW

 550 Ft/kW

over 120

 850 Ft/kW

 750 Ft/kW

 650 Ft/kW

In case of lorries, buses, tractors, when the performance of the motor exceeds 120 kW, the tax rate is calculated as for a vehicle with 120 kW performance.

For the acquisition of title to a trailer, if the permissible maximum gross weight of the trailer is less than 2,500 kg, the tax payable shall be HUF 9,000; in all other cases, the tax shall be HUF 22,000.

 
Tax due date

On the 15th day from that day when the decision of tax authority about the obligation on pay the tax come into force.

 
Tax collector

The tax is collected by the Tax and Financial Control Administration.

 
Special features

In respect of the acquisition of ownership of a motor vehicle, the tax is payable not on the market value of the acquired vehicle, but the performance of the vehicle expressed in KW and the year of manufacturing of the vehicle.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d214ca

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 79,869.00 HUF 0.28
2011 68,905.00 HUF 0.24
2010 77,618.00 HUF 0.29
2009 118,481.00 HUF 0.45
2008 137,940.00 HUF 0.51
2007 117,466.00 HUF 0.46
2006 118,881.00 HUF 0.49
2005 112,491.00 HUF 0.50
2004 111,328.00 HUF 0.53
2003 98,526.00 HUF 0.52
2002 71,415.00 HUF 0.41
2001 63,902.00 HUF 0.42
2000 52,754.00 HUF 0.40

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