How much tax do you pay when selling a property?

Enter the figures and the calculator works out the personal income tax payable under the Hungarian rules in force (Personal Income Tax Act, Section 62).

Your figures

Year of acquisition

Year of sale

The year of sale cannot be earlier than the year of acquisition.

The year of acquisition counts as year 0. From the fifth year of ownership the sale is tax-free.

Sale price HUF

Purchase price (acquisition value) HUF

Value-enhancing works, renovation (with invoices) HUF

Agent’s fee HUF

Other costs (legal fee, advertising, duty) HUF

Only costs evidenced by an invoice can be deducted. Cash payments without an invoice cannot be claimed.

Result

Calculated amount (gain) 0 HUF

Years of ownership –

Taxable proportion –

Taxable income 0 HUF

Tax payable (15%)

0 HUF

15% of the calculated income

Left from the sale price after tax: 0 HUF

Next step

Once you know the tax, the next question is what your property is actually worth. Ask for a free consultation or valuation.

Clicking the button opens your email client with the message ready to send to Petra. The calculator result is attached automatically.

How the tax changes with the years

The same figures, shown by length of ownership. You can see clearly from when the sale becomes entirely tax-free.

Time since acquisition	Taxable proportion	Taxable income	Tax payable

When is tax payable after selling a property in Hungary?

Many people sell believing the whole purchase price is theirs. In fact, if the sale price is higher than what you originally paid, the difference counts as income and is subject to 15% personal income tax.

The good news: the tax base decreases over the years. For residential property, from the fifth year after the year of acquisition there is no tax to pay at all, however large the gain.

How does the calculator work?

The basis of the calculation is the income: from the sale price we deduct the amount spent on acquiring the property and the related costs evidenced by invoices. These can include value-enhancing works, the transfer duty paid at acquisition, the legal fee and the costs of the sale itself.

On top of that comes the relief for elapsed time under Section 62 of the Personal Income Tax Act: for residential property, in the year of acquisition and the following year 100% of the income is taxable, in the second year 90%, in the third 60%, in the fourth 30%, and from the fifth year 0%. The tax payable is 15% of whatever tax base remains.

What should you know about the result?

The calculator is indicative and does not constitute tax advice. There are a few common situations the formula cannot handle, even though they significantly affect the outcome:

with inheritance or a gift, the acquisition value is not a purchase price but the probate value or the value established for duty purposes
for non-residential property (land, retail units, garages) the elapsed-time rule runs for fifteen years, not five
value-enhancing work can only be claimed with an invoice, and not every renovation qualifies as such

If any of these applies to you, do get confirmation from an accountant or tax advisor – I help from the property side, I don’t replace a tax expert’s opinion.

Frequently asked questions

After how many years is selling a property tax-free?

For residential property there is no tax liability from the fifth year after the year of acquisition. For non-residential property the period is fifteen years.

What can be deducted from the sale price?

The amount spent on acquiring the property, the transfer duty paid at acquisition, value-enhancing improvements evidenced by invoices, and the costs of the sale.

Do I pay tax if I sell at a loss?

No. If the sale price does not exceed the acquisition value plus the deductible costs, there is no taxable income.

When must it be declared?

In the personal income tax return for the year of the sale, by 20 May of the following year.

Important notes

The calculator is indicative and does not replace the opinion of an accountant or tax advisor.
The date of acquisition is the day the sale contract was filed with the land registry (not the day of payment or of registration).
With inheritance or a gift, the acquisition value may be determined differently (often 75% of the sale price).
Where property is sold as a business activity on a regular basis, social contribution tax and in some cases VAT may also arise.
The deadline for declaring and paying is 20 May of the year following the sale.