Parliament on Monday approved amendments to Hungary’s tax laws, the daily newspaper Nepszabadsag reported on Tuesday.
The amendments adopted on Monday stipulate a 0.25pc tax bracket on property up to a value of HUF 30m, 0.35pc from a value of HUF 30m to HUF 50m and 0.5pc from a value of more than HUF 50m. Property under a value of HUF 30m would be tax-exempt. The government’s original proposals stipulated a 0.35pc tax on property up to a value of HUF 30m, the newspaper noted.
The amendments also specified a lower threshold of HUF 5m for the 17pc personal income-tax bracket in 2010 and a HUF 15m lower threshold in 2011.
As opposed to the 32pc original proposal of the government, the amendments stipulated a 25pc tax on extra-wage benefits, including hot-meal vouchers up to a value of HUF 18,000, and 54pc tax on cold-meal vouchers up to that same value. Hot-meal vouchers were previously tax-exempt up to a value of HUF 12,000, while cold-meal vouchers were previously tax-exempt up to a value of HUF 6,000.
The amendments specify that companies will be able to write off all research-and-development expenses from their local business tax, while leasing companies will be exempted from paying stamp duty on residential and vehicle transactions. Both of these amendments will reduce the tax revenue of local councils.
The amendments stipulate that the VAT rate on sales of new residences will be only 20pc if the sale is reported to the property office before July 1, while the VAT rate on tourism services will be 18pc.
Hungary’s general VAT rate will rise to 25pc from 20pc on July 1.
way to go slaves…nothing is under 30m unless your in a village –
and your next. Welcome to the west my friends…
[well, more opportunities in the west, you just get it up where the
sun doesnt shine]
Ive also seen where the taxes already paid are [NOT] going
to…the public school systems. The places are rotten old
buildings, with only the private religious sector getting ahead.
So tax dollars not in the education system.
The health system is a joke, I know people who rather die [and
did so] than go to the public hospital.
So where oh where sweet government are you taking this new
found money…sure you will tell us, but will we really see?
Is it that Budapest eats up the villagers money? probably…and
most of its probably in the politicians pockets.
You have been scammed and not said a thing as the “rich are
taxed” – blahooy, wool your eyes people. Oh well… your loss
folks, dont say I didnt tell you so.
How profoundly stupid. Does anyone have any idea how much it will cost to set up the bureaucracy for property tax? Every municipality would have to invest into an Assessment Office, hire people to determine the value of each property, than handle the paperwork, try to collect, handle the millions of expected complaints, pocket bribes, and so on. Hungary is just not ready for this type of tax yet. Not to mention that FIDESZ swears to wipe it out next year. Is this yet another scheme to waste more of the taxpayers money to extort more bribes from them?
@godot, dude, its like you can read their mind! lol
Scarily I’m going to agree with Godot. This is just
odd – anything that isn’t about lowering government
spending is surely going to abolished by any non-
MSZP government that takes power in 2010. So
immediately after all that set up, the thing will be
dismantled. Brilliant really!
When will Hungary get a sensible tax system?
Can I just seek clarification
“a 0.25pc tax bracket on property up to a value of HUF 30m ……. Property under a value of HUF 30m would be tax-exempt.”
This seems contradictory.
As for the tax threshold of 15m HUF in 2011 this would be extremely welcome, however, that is so far away suspicion tells me that this will not be implemented for one reason or another. I hope I’m wrong.
More taxes More Fun! Marxism, the greatest criminal of all time alive and well in magyarorszag! Free markets for Free Men. Real estate tax? For what? This is a convenient way to remove people from their homes. Many will not be able to afford it and thus move out. Understand this: it effectively means you cannot even own your own home! Even when it is completely paid for, you still pay rent (tax)! Modern day enslavement. This whole magyar”orszag” needs one Burgermeister (not thousands of beurocrats). One Sales tax 5% and Income tax 5% and thats it.
I just love how in ALL Western countries, their governments assess real estate property taxes on residential and business property.
Now, some of the freeloader Westerner arrive as expats in Hungary, buy up property quasi-illegally on the cheap – and immediately, they start crying, bitching, and moaning about how “unfair” real estate taxes will be to them.
Here is my advice: if you cannot afford to pay the real estate tax, rent instead. Maybe then you don’t have to. And if that doesn’t work, just leave to country.
Incidentally, in the Cayman Islands there are NO PROPERT TAXES. No income taxes, either. I suggest all bitching and moaning expats temporarily staying in Hunghary to leave and buy property on Grand Cayman or Little Cayman. Duuuh, no property taxes, hello!! It’s a no brainer – even for those with no functioning brain cells left.
dear me karman, are we a bit bitter about all these freeloading foreigners trying to help this magnificent, self-sufficient country out of it’s hole? wakey wakey man, without us who would actually pay tax in this country? who create any valuein any building in Budapest? locals, forget it man.
namoc, if you are indeed one of those freeloading, blood-sucking leaches that are suffocating our beloved country, you know where YOU should go, right?
HINT: You don’t even have to take a bottle of suntan lotion with you, since the Sun never shines wheee you’re going. And hopefully, really, really soon.
Now, git ‘yer arse moving, and take your taxes with you, okay? ;~))