The draft legislation would raise the annual flat tax on short-term rentals in Budapest from HUF 38,400 to HUF 150,000 per room from 2025, while suspending the issue of new short-term rental licences in 2025 and 2026.
The new rules would only apply to short-term rentals in the capital. The ministry noted that rents in Budapest, where 140,000 of the 800,000 households are tenants, could reach as high as 50-60% of renters’ monthly income.
At the same time, the number of rooms at Airbnb-type accommodations has risen close to 26,000, raising property prices as well as rents, it added. Since the pandemic, rents and home prices in Budapest have climbed over 40%, pricing some homebuyers out of the market, the ministry said.
Additionally, short-term rentals have restricted permanent residents’ right to an “undisturbed” home life, it added.
The ministry said local governments’ lack of action in the matter had only made things worse, justifying intervention by the central government.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
