Personal income tax (SZJA) modification in Budapest, Hungary, ruling the income, generated by the property sales ...  Perosnal income tax (SZJA) modification in Hungary, ruling the income generated by the property sales ... | Personal income tax (SZJA) modification in Hungary, ruling the income generated by the property sales ...
Until the 1st of January, 2008
Two important factor:
1. after 15 year of posession payable tax is 0.
2. the income generated by the property sales could be endorsed into a new property sales with 0 tax to pay (free of tax).
From 1st of January, 2008
1. 5 years time after the property purchase, the income generated by the sales is not taxable anymore
2. to obtain a new property from the real estate sales income does not mean anymore that it would untaxable.
Summerized: if one purchases a property in Hungary it is beneficial to keep it in posession for 5 years time.
Naturally posessing a property as a company holds the same corporate tax law. Here the tax base is the profit of the company: 16%.
Deductable from the Tax base:
all costs, spent on the enlargement of the property size
solicitor's fee, agent's fee
stamp duty
conservation and modernization costs
For further personalised advice please, contact us. We are at your disposal.
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