Can a EU Citizen by more than one property in Hungary?

Hi All,

Can a EU (UK) Citizen buy more than one property in Hungary for private ownership? Not renting out, not holiday home, etc. Just purely for own family to resde in. Or must that EU (UK) Citizen be married to a Hungarian for example to be able to do this?

Thanks in advance.

Peter

Yes definately!

petercori wrote:

Can a EU (UK) Citizen buy more than one property in Hungary for private ownership?


Sure.

petercori wrote:

Not renting out, not holiday home, etc. Just purely for own family to resde in.


But only one can be declared your primary residence. Which makes the others essentially "secondary" or holiday homes by default for legal and tax reasons. So it is relevant what the tax man will call them. And under new laws, local governments can tax most anything they want in their jurisdiction. So non-primary homes might at anytime get a secondary home tax. Where I live, secondary homes are taxed higher than homes that are declared a primary residency.

petercori wrote:

....Can a EU (UK) Citizen buy more than one property in Hungary for private ownership? Not renting out, not holiday home, etc. Just purely for own family to resde in. Or must that EU (UK) Citizen be married to a Hungarian for example to be able to do th....


EU citizens are treated the same as Hungarian citizens as far as property is concerned.  You can own as many places as you want. 

It's very common for individuals to own more than one house, apartment, piece of land or parts of each of those.  People put their homes in the names of their kids and people inherit property which is often divided amongst other family members or even complete strangers.   It can get a bit ridiculous - 1/3 here, 1/2 there, 1/9 here, 1/4 there etc.  It's better to be absolutely clear on property ownership. Splitting it between too many people can end up with mega trouble if the owners fall out with each other (Hungarians fight with each other a lot).  Best to be clear on your objectives if things could possibly (however remotely) go wrong.

Thanks for the advice, much appreciated. So are we talking about Stamp Duty tax (i.e. a one-off tax) only or are there more taxes on those properties to come (i.e. additional yearly taxes) beause the taxman would believe/class them as 'holiday homes' and therefore think you are renting them out?.....even though you wouldn't be.

Peter

Theres a tax on the purchase. 4%  Then You have a Council tax & small village tax to pay. Not even a quarter of the amount you woulf pay in the U.K.

petercori wrote:

So are we talking about Stamp Duty tax (i.e. a one-off tax) only or are there more taxes on those properties to come (i.e. additional yearly taxes) beause the taxman would believe/class them as 'holiday homes' and therefore think you are renting them out?.....even though you wouldn't be.

Peter


Yes, that's correct.  The property taxes are really low.  There's no large community charges like there are in the UK as such. Services like rubbish collection and water/sewerage are all paid directly to the companies for those services and not paid to a local government in the same way.   By UK standards, it's incredibly cheap.  The stamp duty is only paid 2 x year in the first year after purchase, so you could get a bill six months after you completed the transaction.  Some people get  caught out by that surprise. 

If it's a holiday home rented out, I believe you have to pay a person charge for each overnight but it's hit and miss if they would find out.  They do carry out random inspections.  It's not really worth avoiding or evading as it's really low amounts, like 1 EUR/person/night or something like that and the holidaymakers have to pay it anyway. The owner just collects and remits it to the local government. 

If you had an apartment in a large block of flats, I doubt anyone would notice except the people who live there all the time (neighbours, cleaners, management etc). People are really nosey in Hungary so they will gossip about you and it behind your back.  It's something one has to get used to.

petercori wrote:

(i.e. additional yearly taxes)


Yes.

petercori wrote:

beause the taxman would believe/class them as 'holiday homes' and therefore think you are renting them out?.....even though you wouldn't be.


The yearly property tax is required even if the house sits empty all year.

Mercurien wrote:

Then You have a Council tax & small village tax to pay. Not even a quarter of the amount you woulf pay in the U.K.


Yes, property taxes are relatively low in Hungary. At the moment.

But, as I mentioned above, the local governments have new powers to tax. They were given this expanded tax authority when the central government took away a lot of their previously centrally supplied funding.

So I would expect local governments to start passing more local taxes. And secondary home owners are an attractive target for more taxes, as they do not vote in local elections so the local city council has little to fear about losing their jobs by raising taxes on secondary home owners. Just thinking long term here.