Selling, buying, gifting or inheriting property in Hungary: what tax and duty is payable?

This article covers the main rules for non-commercial transactions by private individuals. For commercial sales, company transactions or, for example, agricultural land, further rules must also be considered.

1. Personal income tax after a sale

The seller owes personal income tax if the sale gives rise to income. The rate is 15%, but it is not payable on the full purchase price.

How is it calculated?

From the sale price, deduct the original acquisition value (for example, the purchase price), the costs related to the acquisition (duty, attorney's fees), documented value-adding investments and the costs of the sale (for example, an agent's commission). Costs must be supported by invoices or documents. The resulting amount is then reduced according to the time elapsed since acquisition:

In other words, if you sell the property in the fifth year after the year of acquisition or later, no personal income tax is payable.

Example: a flat bought in 2024 for HUF 50 million is sold in 2026 for HUF 65 million, with HUF 2 million of documented costs. The calculated amount is HUF 13 million; 90% of it, HUF 11.7 million, is taxable, and the tax is HUF 1,755,000.

For inherited property, the date of acquisition is the date of the deceased's death, and the acquisition value is, as a rule, the value used in assessing the duty or, failing that, the value in the probate proceedings. Separate cost rules apply to property received as a gift: if no duty was assessed, as a rule 75% of the sale proceeds may be deducted as the acquisition value, with no other costs deductible.

The tax must be declared and paid by 20 May of the year following the sale. The draft tax return prepared by the tax authority (NAV) does not usually include this income, so it has to be added separately.

2. Transfer duty (purchase)

When buying property, the buyer pays transfer duty. The rate is 4% of the market value. Above HUF 1 billion, the excess is subject to 2%, and the duty is capped at HUF 200 million per property. The duty is assessed by NAV by way of a payment notice in the duty assessment procedure. When an ownership share is acquired, the proportionate part of the HUF 1 billion threshold and the HUF 200 million cap applies.

Reliefs and exemptions

• Home exchange and replacement purchase: for private individuals, the duty base is, as a rule, the difference in value. For a purchase, the other home must be sold within five years before or one year after the purchase. However, the separate exemption linked to acquiring a cheaper home currently works with a three-year look-back period and a one-year deadline for the subsequent sale, and there are separate rules for linking several transactions. If the sale takes place only later, the intention and the request for the relief must be notified to NAV by the time the purchase is reported for duty assessment.
• Young first-time buyers: a buyer under 35 may receive a 50% reduction in duty if they do not own and have never owned a whole home or a share of at least 50% in a home, and the market value of the whole home is no more than HUF 15 million. For first-time buyer status, any previously registered property rights must also be examined, and the law contains exceptions.
• Family support schemes: where CSOK Plusz or the rural CSOK subsidy is used, the purchase may be exempt from duty.
• Purchases within the family: sales between direct-line relatives (parent, child, grandparent, grandchild) and spouses are exempt from duty.

3. Gift duty

In the case of a gift, the recipient pays the duty. The general rate is 18% of the net value of the gift calculated under the law, but 9% for the gift of a residential property.

No duty is payable for gifts between direct-line relatives, spouses or siblings. A gift of real estate must be made in writing. Registration at the land registry requires a document meeting further formal requirements, typically a private document countersigned by an attorney, or a notarial deed.

4. Inheritance duty

As a rule, an heir pays duty on the net value of the inheritance calculated under the law. The general rate is 18%, or 9% for inheriting a residential property.

Inheritance is exempt from duty for direct-line relatives (for example, children, grandchildren, parents), the surviving spouse and siblings. The probate proceedings are conducted by a notary, and the duty is assessed by NAV based on the data sent by the notary.

Summary table

What to watch out for

• Keep records of your costs carefully from the time of purchase, as years later they can reduce your tax.
• Timing matters: if the sale takes place a year later, the tax may be significantly lower, or even zero.
• The statements required for reliefs must be made in time. Form B400E must be submitted directly to NAV; the acquisition is reported for duty assessment at the land registry.
• The exemption for gifts and inheritance applies only to the relatives listed in the law. An unregistered cohabiting partner, for example, is not exempt on this basis. Registered partners are, as a rule, subject to the same rules as spouses.

This article is based on the rules in force in 2026. In individual cases, it is worth asking an attorney or tax adviser for an exact calculation.

This article is for general information only and does not constitute legal advice. For advice on your specific situation, please get in touch.