In general, if you have any property, income or business share in Hungary, it is obligatory to have a HU tax id number. If you are the sole owner, you must have the necessary HU tax documents. If there are co-owners (family member, business partner, etc.) all other owner must have minimum HU tax id nr, that is the law. If you rent out the apartment, one of you must have a so called business tax number (it is different than the tax id) that gives only the right to issue invoices, etc.
Something about the taxation itself.
The accountant use the cost deduction method, so he takes into consideration all money from rent and deduct all possible (and legal) expenses. Cost may be: managing, cleaning, repairing, commission (of finding a tenant), or even travelling (if you come to check your apartment 1-2 times a year), accountant fee, hotel (but no drink and no food).
Accountant use the depreciation – 2% of the value of the buying price of the apartment (that is why purchase contract is needed).
The personal income tax system is annual and based on the calendar year, no loss or profit could be passed to another year.
All deductible costs must be based on proper invoice (not just a receipt).
– HU tax id nr: 50€/person (to be paid once)
– HU business tax number: 50€/person (to be paid once)
– Personal income tax return: 150€ (annual fee) /1 apartment, 250€/2 aptms, 350€/3 aptms.
– Invoicing: 10€/invoice
– Building tax return: 50€/person/apartment/year (in some district – e.g. in the 6. district) the property owner must pay property tax (it is called building tax) – that is annually.
For more information contact us anytime.