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What are the additional costs when buying a flat?

 

Q: What are A1 's charges when buying a flat?

A: 3% commission plus 20% VAT (since January 1st 2006)

 

Q: What is the solicitor's (lawyer's) fee for preparing a contract of sale?

A:

  • 2% plus 20% VAT of the sales price for properties valued 15 million forints and below.
  • 1.5% plus 20% VAT of the sales price for properties valued 15 to 40 million forints.
  • 1% plus 20% VAT for properties valued above 40 million forints.  

 

Q: What is the solicitor's (lawyer's) fee for establishing the "Bt." type company?

A: The legal firm charges 720 euros plus 20% VAT (900 euros) to establish the Bt. type company for the client. The legal firm charges 1400 euros plus 20% VAT (1750 euros) to establish the Kft. (Ltd.) type company for the client.

Most of our clients purchase property thru their newly established Hungarian company.

 

Q: How much is Stamp Duty (Purchase Tax)?

A: When buying as a company, the company will pay 2% tax if it intends to sell the flat within 2 years or 6% if sold later. When buying as a private individual you will pay 2% for the first 4,000,000 HUF (approx. 15 380 euros) of the purchase price, and 6% for the outstanding amount.

 

Q: How much does it cost to renovate a property?

A: It depends on how much work needs to be done but the average price per sq/m is 200 - 450 euros plus 20% VAT.

 

Q: What is the commission when renting a flat through an agency?

A: The letting commission is one months rent plus 20% VAT paid upon signing the contract. (click here for more information)

 

Q: What's the management fee for a rented flat?

A: The management fee is 8% of the monthly rental fee plus VAT. (click here for more information)

 

Q: What is the tax on rent?

A: If the flat is owned privately (not by a company), then it is 20% (since January 2005)of the rental income when renting a residential property to an individual or a business. Foreign nationals must apply for a tax ID and issue an invoice to the tenant. Companies only pay the 16% (down from 18% in previous years) corporate tax on profits. (click here for more information)

 
 
2003 A1 Real Estate