Hungary: Serial-sellers to pay VAT on real estate
The Finance Ministry made a correction in the draft version of the next tax package.
The 20% VAT levied on the sale of properties having a permit of use no older than two years will have to be paid only in two cases: if the sale price exceeds Ft 15 million or if there is a ’series’ of sales, i.e. there are over three properties sold within two calendar years. Also, any further sale in the following three years is subject to VAT payment. From the 6th year, however, sale of the property will have no restrictions. The Ft 15 million is three times the upper limit of tax exemption. VAT is to be paid only when the combined price of the properties sold in the first two years reaches Ft 15 million. But in the case of 3+ year old real estate, every sale of the property will be VAT-chargeable. (Napi Gazdaság)
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