2019 Real Estate Tax Changes

The law has changed and taxation will be more favorable on the income from the leased real estate. Many people have bought homes for rent so far, probably due to the beneficial changes, more will be made in the future.

This is of greater financial benefit to those who are renting out more real estate, that is, doing business on a commercial basis. Here you will save tens of thousands of forints a year with this change. If you continue reading our article, you will find out what the 2019 property tax changes are.

2019 Changes in Real Estate Taxation

2019 Changes in Real Estate Taxation

Overhead settlement

Under the old rule, overheads are calculated as rental income on real estate. Typically in a lease contract, the owner leases his apartment with the payment of rent + overhead. The meters remain in the name of the homeowner.

Not only the rent but also the overhead had to be taken into account in the rental income. This also applies if the overhead is actually paid or transferred by the tenant. It is eligible for utility bills paid to utility companies based on invoices.

Under the new rule, effective January 1, 2019, there is no overhead for rental income. (Section 17 (3a) of the PIT Act, Act CXVII of 1995)

Rules on deduction of tax advances

Rules on deduction of tax advances

This change applies only to those who lease their property to a company. The leased property can be an apartment, office, retail space, workshop, anything, as follows. Under the old rule, if you rented your property to a company, you didn’t have to pay a quarterly tax advance, but the tenant withheld the tax every month from the rent and he transferred your tax to the state. By 31 January of the following year, you were issued a certificate of your personal income tax deduction, which allowed you to enter this amount in your tax return as tax paid. The deduction of the tax advance required a statement at the beginning of the year of its estimated costs, on the basis of which the tax was deducted. Costs of up to 50% of the revenue could be declared.

The old rule is retained, but there is a small addition that applies only to housing rentals. If the landlord rents an apartment in another settlement, the rent may be deducted from the rental income. This option is also available for rented apartments abroad. This has been the case so far.

The change is that if you report this, the 50% rule will be overwritten and the tenant will not deduct any tax advances unnecessarily.



The value threshold for the acquisition of increased tangible assets has increased from the previous 100 thousand HUF to 200 thousand HUF . In the case of leasing of real estate, this category includes furniture, furnishings and household appliances. For items over $ 200,000, flat rate depreciation will continue to apply.

Use the Good Finance home loan calculator to buy a property with a loan. When applying online, you can find out more quickly whether you are eligible for a loan or not. There is no obligation to complete the calculator.

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