According to Act XCIII of 1990 on Fees, an acquisition duty is payable in the case of a transfer of property in rem, including the sale of real estate.
The basis of the levy is the market value of the property acquired, net of any encumbrances, which in the case of real estate is usually the purchase price specified in the contract. The rate of the duty is 4% of the taxable amount, payable by the buyer(s). For example, the amount of duty payable on a detached house worth HUF 100 million is HUF 4 million. However, the parties have the possibility to indicate separately in the contract the value of the movable property not belonging to the real estate, thus reducing the tax base.
It is important to know that the tax office has the right to check the market value. If it finds that the contractually agreed purchase price is too low compared to the market value, it is entitled to determine the market value differently. However, a solution may be to prove that the purchase price stated in the contract represents the real value of the property.
Reduction of and exemption from duty
In each case, it is necessary to check whether there are circumstances that may justify entitlement to a reduction or exemption from the levy. These may be exemptions or reductions relating to residential property, land, agricultural land, agriculture. For example, a common case of duty relief is the first acquisition of a dwelling by a person under 35 years of age, in which case 50% (i.e. not 4% but only 2%) of the duty payable is payable if the value of the property does not exceed HUF 15 million. The acquisition of a plot of land suitable for the construction of a dwelling house is exempted from the levy if the buyer declares that he will build a dwelling house on it within 4 years and the legal conditions are met.
