Changes to 2010 Property Tax Laws favorable to Real Estate Acquisition

Changes to 2010 Property Tax Laws to Real Estate Acquisition

Effective 2010, real estate acquisition taxes (i.e. taxes on purchased, received or inherited property) are as follows:

1./ Relative to commercial value (purchase price) of all real estate (e.g. apartment - flat, garages, parking spaces, vacation or weekend houses) buyer now pays 4% tax on prices up to and including,-HUF. However on prices exceeding this amount buyer will now pay 2% tax.

2./ Inherited and received property, regardless of value, is now tax-free provided that recipient is directly related to donor or to decedent. In this case directly related is defined as relationship between parent/child, grandparent/grandchild and so forth, including adoptive parents and adopted children. Directly related does not include siblings, step-relatives etc.

Please note that all aforementioned tax exemptions must be registered with tax autorities.