1.  Due diligence costs for the purchase of real estate
    1. Municipal search
    2. Cost
    3. VAT
    4. Utility search (each service)
    5. Cost
    6. VAT
    7. Land registry search (per search)
    8. VAT
    9.  Company search, per company
    10. VAT
    11.  Survey/Valuation fee, approx
    12. VAT
    13.  Phase 1 Environmental survey
    14. VAT
  2. Costs associated with a contract for purchase of real estate and registering title
    1.  VAT on price
    2. Cost
    3. VAT
    4.  Transfer duty
  3. Tax or duty on the acquisition of shares in a company owning real estate
  4.  Capital gain taxation on future disposal of real estate or shares in a company owning real estate
    1.  Tax on capital gains on the disposal of the real estate itself
    2.  Tax on capital gains on the disposal of shares in a company owning real estate

jurisdiction

Hungary

1. Due diligence costs for the purchase of real estate

Cost

Time-based cost plus out-of pocket expenses (e.g. administrative fees, copies).

VAT

27%

1.2 Utility search (each service)

Cost

Negotiable

VAT

27%

VAT

27%

1.4 Company search, per company

VAT

Nil

1.5 Survey/Valuation fee, approx

VAT

27%

1.6 Phase 1 Environmental survey

VAT

27%

2. Costs associated with a contract for purchase of real estate and registering title

2.1 VAT on price

Cost
  1. 4% up to a market value of HUF 1bn, and 2% for the excess, with an overall cap of HUF 200m.
  2. Residential property (Apartments): 4% of the market value of the property which is not reduced by the liabilities.
VAT

27%
5% for “new buildings” up to 150 square meters in case of flats, and up to 300 square meters in case of houses.

2.2 Transfer duty

3. Tax or duty on the acquisition of shares in a company owning real estate

The direct or indirect acquisition of at least 75% of the shares in a company owning real estate located in Hungary is also subject to transfer duty (see Section 2 (transfer Duty) for details).

4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate

4.1 Tax on capital gains on the disposal of the real estate itself

Sale by a company: subject to general corporate tax of 9%.
Sale by an individual: 15% personal income tax (subject to exemptions). Further rules will apply for the sale of properties reclassified from agricultural land within five years of the reclassification.

4.2 Tax on capital gains on the disposal of shares in a company owning real estate

Foreign companies deriving capital gains from a “real estate company” are also subject to Hungarian corporate income tax at 9%, provided that they are resident in a country in respect of which the relevant double tax treaty allows Hungary to tax the capital gains (or with which Hungary has no treaty).
Sale of shares by a Hungarian resident private individual: 15% personal income tax.
Foreign resident private individuals deriving capital gains from a “real estate company” are also subject to tax at 15%.