Airbnb in Budapest: Government plans drastic tax increase

Last week, Hungary's Economics Minister Márton Nagy indicated at the portfolio conference that Airbnb landlords in Budapest would soon have to dig deeper into their pockets. The reason: The government wants to combat the housing crisis in the capital with a drastic tax increase and a two-year ban on Airbnb approval.

What is planned?

• 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.
• No impact on rural areas: The new rules only apply to Budapest.

Why these measures?

The government argues that Airbnb is distorting the housing market in Budapest. Apartments that would actually be needed for students, young families and employees are rented out as holiday apartments. This drives up rental prices and makes it impossible for many people to find affordable housing. The government says that 19% of the capital's residents rent and that younger people in the city center in particular spend up to 60% of their income on rent.

Criticism of Airbnb

Airbnb has long been criticized for exacerbating the housing shortage in many cities. It remains to be seen whether the planned measures in Budapest will actually lead to an easing of tensions on the housing market.

Source: 444.hu