In the case of buying a residential property, the general rate of the property acquisition duty is 4%, which must be paid based on the market value of the acquired property. Up to HUF 1 billion, the rate is 4%, and above that amount it is 2%, with a maximum of HUF 200 million per property.
Who pays the duty?
The buyer always pays the duty. A common misunderstanding is that the seller pays it — however, the seller pays personal income tax (PIT) instead.
The basis of the duty: market value, not purchase price
The property acquisition duty is not automatically calculated based on the purchase price stated in the contract, but on the market value determined by the tax authority (NAV). In most cases, this corresponds to the purchase price, but NAV may adjust it if there is a discrepancy.
This is important because:
- if the purchase price is significantly below market value, NAV may conduct an on-site inspection
- if the price is above market value, it usually does not trigger additional issues
Duty rate – in detail
For residential property acquisition:
- 0 – HUF 1 billion: 4%
- Above HUF 1 billion: 2%
- Maximum duty per property: HUF 200 million
When must it be paid?
The obligation to pay the duty arises on the date of signing the contract, but payment is not immediate.
In practice:
- the transaction is reported (e.g. via form B400e)
- the tax authority issues a payment notice
- the deadline is usually 30 days
