Hungary Property Tax Guide 2026

Overview — Property Taxation in Hungary

Hungary's property tax system is characterised by the absence of a recurring national property tax (like the UK's Council Tax or US property taxes). Instead, property-related taxes are limited to acquisition duties (stamp duty), a low municipal building tax, and capital gains tax on sales. This makes Hungary a relatively low-tax jurisdiction for property ownership, particularly for long-term holders.

Stamp Duty on Acquisition (Visszterhes Ingatlanátruházási Illeték)

The transfer of real estate in Hungary is subject to stamp duty (illeték), a one-time tax paid by the buyer. The rates are progressive:

• 4% on the market value of the property up to HUF 1 billion
• 2% on the portion of the market value exceeding HUF 1 billion

The stamp duty is payable within 30 days of the sale contract. Failure to pay on time incurs late payment interest. The duty is calculated on the higher of the purchase price and the official market value assessed by the tax authority.

First-Time Home Buyer Exemption

Young first-time home buyers (under 40) are eligible for a stamp duty exemption on the first HUF 15 million of the property purchase price for a residential property. This exemption applies to one purchase per person, and the property must be used as the buyer's primary residence. For properties valued above HUF 15 million, stamp duty is payable only on the excess amount.

Additionally, first-time buyers may be eligible for a partial VAT refund on newly built homes (up to HUF 5 million) under certain conditions.

Municipal Building Tax (Építményadó)

Hungary does not have a national property tax, but local municipalities may levy a building tax (építményadó) on buildings within their jurisdiction. Key features:

• The tax is levied at the discretion of each municipality — not all municipalities impose it
• The maximum rate is HUF 1,100 per square metre of usable floor area per year
• In Budapest, the rate varies by district but is typically HUF 900-1,100 per sqm per year
• The tax is based on the usable floor area, not the market value of the property
• Exemptions apply for residential properties in many municipalities, or reduced rates for primary residences
• Commercial properties are more commonly subject to the building tax

The annual building tax burden is very low compared to property taxes in other countries. For a typical 50 sqm apartment in Budapest, the annual tax could be approximately HUF 45,000-55,000 (€115-140).

Capital Gains Tax on Property (15%)

Gains from the sale of real estate are subject to personal income tax (SZJA) at the flat 15% rate. Key rules:

• Taxable gain: Sale price minus acquisition cost and documented improvement expenses
• Holding period taper: The taxable gain is reduced by a percentage based on the holding period:
  • 0-5 years: 100% of gain taxable
  • 5-10 years: 60% of gain taxable
  • 10-15 years: 30% of gain taxable
  • 15+ years: 0% of gain taxable (exempt)
• Primary residence exemption: Gains from the sale of a primary residence may be exempt if the proceeds are reinvested in a new primary residence within 12 months (subject to conditions)
• Non-residents selling Hungarian property are also subject to the 15% CGT

Land Tax (Földadó)

Land outside built-up areas may be subject to land tax (földadó) levied by municipalities. The maximum rate is HUF 200 per square metre per year for arable land and HUF 50 per square metre for other land. This tax is rarely imposed and typically applies only to large agricultural landholdings.

Rental Income Taxation

Rental income from property is taxed at 15% SZJA. Landlords can deduct costs (maintenance, management fees, insurance, depreciation) on an itemised basis or claim a standard 10% cost allowance (10% of gross rental income). Social contribution tax (szocho) at 13% applies to rental income up to the cap of 24 times the minimum wage.

FAQs

Is there really no annual property tax in Hungary?

There is no national annual property tax. Municipalities may levy a building tax (építményadó) at low rates based on floor area, but many do not apply it to residential properties, making ongoing ownership very tax-efficient.

How is the stamp duty calculated for a property worth HUF 1.5 billion?

Stamp duty = 4% × HUF 1B (HUF 40M) + 2% × HUF 500M (HUF 10M) = HUF 50 million total.

Can a foreigner buy property in Hungary?

Yes, EU/EEA citizens can buy property freely. Non-EU citizens need a permit from the local government office, which is generally granted for residential property. Agricultural land has restrictions for all non-residents.

Disclaimer

This guide provides general information about Hungarian property taxes for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Hungarian tax advisor (adótanácsadó) or NAV directly for advice specific to your situation. InvestmentKit does not provide tax advice.