The guide to Airbnb taxation in Hungary – all relevant taxes and tax rates (Update 2025)

Unfortunately, Airbnb taxation in Hungary (to be precise: “income from short-term rental”) is so confusing that even experienced Airbnb managers were unable to provide us with comprehensive information about what needs to be declared and paid, where, how much and by when. I found that so unsatisfactory that this overview was created from it. It applies exclusively for private individuals.

But be careful: we are not tax advisors and make no claim that this information is correct, complete or up-to-date. There may be regional differences. It is possible for information to become outdated, and there is always room for misinterpretation or translation errors. We cannot accept any liability for damage that could result from the unchecked adoption of this information and therefore ask that, if in doubt, have this guide checked by a specialist or contact the tax office or the city directly. 

I would also be grateful for any information about errors or additions to the following address:
office@budapest-invest.com

As of: November 2024

Requirements for being able to pay taxes as a private individual

Taxation as a private individual is significantly cheaper than with commercial landlords. By the way, also because you then get much more favorable conditions from the suppliers. Commercial businesses pay the unsubsidized electricity and gas prices and that can really wreak havoc on the balance sheet.

The good news: the limit for commercial activity is very generous:

• private individuals have A maximum of 3 apartments rented via Airbnb, whereby each apartment may have a maximum of 8 bedrooms or 16 beds. Anyone who operates more short-term rental apartments (i.e. guests stay for a maximum of 90 days) is subject to corporate taxation.

• In this guide we assume that Management of the apartment via an intermediary is running – usually this is a company that specializes in Airbnb management. This simplifies many processes significantly, including invoices are automatically sent to the guests, the tourist tax is calculated automatically and you don't have to worry about VAT. But more on that later.

• Tax identification number (Adóazonosító jel) for everyone who is not already a tax resident in Hungary. As a rule, you have already been assigned such a number when you bought an apartment in Hungary and have already used it to pay the property transfer tax. She can with that Form 23T34 be applied for.

• Tax number (Adószám) this tax number is required for the declaration of income from short-term rental. It is applied for at the tax office when acquiring an Airbnb license.

• NTAK number – The number for the National Tourism Authority. It is mandatory to get a license because it collects data about the occupancy/guests of the accommodation, which is the basis for calculating the tourism tax.

• Access to the state customer portal (Ügyfélkapu) – This access is required so that you can submit declarations digitally instead of using forms sent by post, and also receive the notices digitally. The portal is used to register for all other government offers (digital authentication). You can have such access only apply in person, either in a citizens' office (Kórmany Ablak) or in a consulate or embassy. You only need an ID card, you don't need a place of residence in Hungary.  
  

Overview of taxes for private operators
short-term rental in Hungary (with a focus on Budapest)

1. Income tax flat rate

In Hungary there is the possibility of paying a simple flat rate tax for short-term rental of 38,400 HUF / year per rented space. To do this, you must register in the first year using form 23T101 (in 2024 the form will be called 24T101) and then state this in an annual tax return.

This classification is usually applied for during the licensing process - so if a license is available, this point should be taken care of.

Attention: from 1.1.205 the following applies:

• Quadrupling the tax: From 2025, the annual flat rate tax for Airbnb apartments is expected to rise from the current 38,400 forints (approx. 95 euros) to 150,000 forints (approx. 370 euros) per room.
• Two-year moratorium: No new Airbnb apartments will be allowed to be registered in Budapest in 2025 and 2026.

The tax authority's documentation requires quarterly payment on the 12th of the following month, but it is much more practical to simply transfer the entire amount in one go. The main thing is that payment is made before December 31st. of the year to the tax office (“NAV”).

The income tax return for the year must then be submitted before May 20th of the following year, which can be done in paper form or via a Java application (ANYK). If the declaration matches the advance payment (assuming it does), there is nothing else to do.

In summary: 

a. Register when the accommodation is put into operation
b. Advance payment by December 31st. of the year to the tax office (NAV)
c. Annual declaration (income tax) by May 20th of the following year

2. Contribution to tourism development – ​​4% for the owner

4% is calculated on the sum of all “gross receipts less VAT” based on the statements received from the Airbnb management company.

For annual tax returns, the deadline is February 26 of the following year. The form is called 23TFEJLH and can be accessed online via https://onya.nav.gov.hu be filled out.

To log in, please have your Ügyfelkapu details ready!

3. Local tourist tax (“tourist tax”) – 4% for guests

The tourist tax is payable by people who stay in the community for at least one night as non-residents. So it concerns the guests, not the landlord. This is a 4% levy payable on the accommodation fee per total number of nights. This is calculated by the Airbnb manager, but must be reported and paid by the landlord. There is an option for in the declaration annual paymentwhich we prefer.

Only Self-manager must choose the monthly or quarterly declaration, because they are subject to VAT and VAT returns must be submitted at least quarterly. Both types of taxes (tourist tax and VAT) are declared and paid at the same time.

These steps are required:

a. registration

The tax liability must first be registered with the city tax authority within 15 days of it arising - using the form provided. And do so via the form ASP-ADÓ-BEJ, that about that Municipal Administration Portal (OHP) can be retrieved.

b. Tax filing monthly / quarterly / annually

Tax registration must be completed by the 15th of the following month/quarter or year, also via the Municipal Administration Portal (OHP)  with the form IFORM 035 Idegenforgalmi adó.

4. Municipal building tax

Many people don't even know about their existence, but since 2019 the owner of an apartment in which Accommodation services be provided, pay building tax from the first day of the year after registration of the apartment. The height varies depending on the district and is based on the area of ​​the apartment. It is paid once a year.

Here is an example for the 8th district
Source: https://jozsefvaros.hu/ugyintezes/ugy/epitmenyado-telekado/

The following sentences have applied here since January 1, 2023

• Apartments under 100 sqm: 566 HUF / sqm / year
• Apartments over 100 and under 500 sqm: 1,792 HUF / sqm / year

One 50sqm apartment in the 8th district So costs 28,300 HUF, that is the equivalent of 75 euros per year

The municipal building tax is payable in two equal installments, on March 15th and September 15th.

The taxpayer can also fulfill his outstanding payment obligation to the local tax authority by making an electronic payment via the website https://ohp-20.asp.lgov.hu/nyitolap fulfill.

Submission form ASP-ADO-031 (Building Tax / Epitmenyado)

5. VAT (5%)

This only applies to self-managers, because they receive the income from Airbnb or Booking directly (with VAT). If there is an intermediary (Airbnb administrator), then this step is not necessary because the administrator pays the net amount to the owner and pays the VAT beforehand. Self-managers must first apply for a VAT ID from the tax office and then ensure that the sales are declared monthly or quarterly and that the sales tax is paid.

The Hungarian VAT rate for the provision of holiday accommodation is 5%.

Payment is made monthly or quarterly and must be submitted on the 20th of the month following the VAT period. Payment of VAT must be made on the same day that the VAT return is submitted.

Conclusion on Airbnb taxation in Hungary / Budapest:
What does the owner of an Airbnb accommodation pay specifically:

Assumption: 50sqm apartment in the 8th district with income of 10,000 euros per year

1. Income tax flat rate: 370 euros per year (from January 1st, 2025)
2. Contribution to tourism development: 400 euros per year
3. Building tax: 75 euros per year 

That's 845 euros in taxes and duties on 10,000 euros
and that corresponds to one Tax rate of 8.45%

So you can see that it is complicated, but incredibly low and definitely worth the effort.

However, keep in mind that the Administrator a share of the income takes place so that communication with the guests, the cleaning of the apartment, the professional laundry service, and the quick, independent solving of faults and repairs. Depending on the provider, the rate is around 25% of income.

If you are interested in such an investment, please contact us book a consultation!