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Luxury tax goes 50-120% higher in Budapest, Hungary

Owners of valuable real estates have to pay 50% to 120% higher luxury tax in Budapest, according to information from daily Napi Gazdaság.

Luxury tax has to be paid for real estate over Ft 100 million ($560000), and it can be 0.5% of the part over the threshold. It can be paid in two installments. These details are specified in a law dating from 2005, and its instructions add, that the amount of the tax can be modified after two years. Nevertheless, tax subjects are shocked as the modified tax amount came as a surprise. The revenue coming from this tax would increase anyway as this is the first year when not only households, but also enterprises have to pay luxury tax. According to the estimate, this extended the scope of the tax by 1,000 real estates. Last year luxury tax totaled at Ft 114 million in Budapest, made payable through 579 declarations. Other tax revenues of the city include tourist tax (Ft 1.2 billion in 2008), and business tax (Ft 160 billion in 2008). (Napi Gazdaság)