Frequently Asked Questions Buying in Budapest and
Hungary
For Sicily Frequently asked
questions select here
How long does the buying
process take?
We recommend a 5 day trip to view
properties, and purchase. The first 2 days are spent
looking at prospective apartments. After that, if
you decide to purchase, a bank account needs to be
opened, municipal permits applied for, legal documents
signed etc. 5 days allows enough time that you are
under no pressure, and you can make the choice that’s
best for you.
Is rental income taxable?
As a company, you pay 18% corporation
tax on profits.
As an individual, you pay 20% income tax on all of
the rent.
What are the costs
associated with the management of the apartment?
Management services cost one month rent and then 12%
of the rent per month for the duration of the tenancy.
Can foreigners purchase
property in Hungary?
There are two ways to purchase property
in Hungary.
As a company
As an individual
The most common way to purchase is with a Hungarian
company. The cost of setting up a company is €600
approximately. It offers the opportunity to offset
most of your costs against profits for tax purposes.
There are no time restrictions when purchasing property
using a company. It takes less than a day to set up
the company, and you can purchase immediately. Your
rental income is subject to 18% tax but only on profits.
Companies require the services of an accountant which
will cost approximately €400 per annum.
The second way to purchase is as an individual. Initially
this costs nothing. You must first find a property
that you like, and apply for a permit from the local
municipality. This can take up to 3 months, and many
sellers may not wait that long. All rental income
from a property bought as an individual will incur
20% income tax.
What is the anticipated
rental return?
Generally, one may expect 6-10% annual
return on investment. This however depends on the
area, and condition of the property.
Interested
in buying - Contact Us
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