Real Estate Transfer Tax in Hungary

                                                                                         

In general, real estate transfers are subject to a 10% transfer tax levied on the transfer price or the market value of the property. The transfer tax base also includes the VAT amount. The transferee (the buyer) pays the tax.
 
The rate is 2% for apartments and houses up to HUF 4 million (EUR 15.000) and 6% on anything in excess of the sum. Companies purchasing, selling or leasing real estate in the course of their ordinary business are liable for paying only a 2% preferential transfer tax when purchasing the property, provided that the sale is completed within two years from the date of purchase, or the real estate is leased under such terms where the lessee automatically assumes the real estate title once the period expires. The sale of the shares of the entity holding the real estate is not subject to transfer tax.
 

About the author:
Rony Grynholc is the CEO of ITP group - a private investment company.

Article Source: http://www.Free-Articles-Zone.com