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Property tax to be based on transaction registry

The rate of a new tax on real estate assets is to be determined using transaction data for residential property, Hungarian Finance Minister Péter Oszkó said at a conference.

Experts said that the data could indeed prove a reliable basis in the case of apartments, but the situation is more complex for family homes. In this case, there are far fewer transactions that could be used to determine actual market value.

Furthermore, significant value discrepancies can emerge even for buildings in the same street taking into consideration the neighboring houses, accessibility or the available view.

For homes in the outer areas of the greater Budapest region, the situation is also troubling. In these parts, there were also few deals that could offer insight into actual market values, not to mention the fact that the crisis has shown many families started building houses in the suburbs beyond their means and are now having to accept losses if they are determined on making a sale. (Napi Gazdaság)