Unfortunately, Airbnb taxation in Hungary (to be precise: “income from short-term rentals”) is so confusing that even experienced Airbnb administrators were unable to provide us with comprehensive information on what needs to be declared and paid, where, in what amount and by when . I found this so unsatisfactory that I created this overview. It applies exclusively to private individuals.
But please note: we are not tax consultants 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 It is possible for information to become outdated, and there is always room for misinterpretation or translation errors.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 damages that may result from the unchecked adoption of this information and therefore ask you to have this guide checked by a specialist in case of doubt or to contact the tax office or the city directly.
I would also be grateful for any information on errors or additions to the following address:
office@budapest-invest.com
Status: February 2024
Airbnb taxation in Hungary - Table of contents
Requirements for being allowed to pay tax as a private individual
Taxation as a private individual is significantly more favorable than for commercial landlords. Incidentally, this is also because you then get much more favorable conditions from the suppliers. Commercial enterprises pay the non-subsidized electricity and gas price and that can really hurt the balance sheet.
The good news is that the commerciality limit is very generous:
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Private individuals have rented out a maximum of 3 apartments via Airbnb, whereby each apartment may have a maximum of 8 bedrooms or 16 beds. Anyone who operates more apartments as short-term rentals (i.e. guests stay for a maximum of 90 days) will be subject to business taxation.
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In this guide, we assume that the management of the apartment is handled by an intermediary – usually a company specializing in Airbnb management. This significantly simplifies many processes, including the automatic sending of invoices to guests, automatic calculation of visitor’s tax and no need to worry about VAT. But more on that later.
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Tax identification number (Adóazonosító jel) for all those who are not already resident in Hungary for tax purposes. As a rule, such a number has already been assigned to you when you buy an apartment in Hungary, and you have already used it to pay the real estate transfer tax. It can be applied for using form 23T34.
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Tax number (Adószám) This tax number is required for the declaration of income from short-term rentals. It is applied for at the tax office in the course of acquiring an Airbnb license.
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NTAK Number – The number for the National Tourist Authority. It is mandatory to obtain a license, because it collects the data around the occupancy / guests of the accommodation, which is the basis for the calculation of the tourism tax.
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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 notifications digitally. The portal is used to log in to all other government services (digital authentication). You can only apply for such access in person, either at a citizens’ office (Kórmany Ablak) or at a consulate or embassy. You only need a passport, you do not need to be resident in Hungary.
Overview of taxes for private operators
short-term rentals in Hungary (with a focus on Budapest)
1. flat-rate income tax allowance
In Hungary, there is the option of paying a simple flat-rate tax for short-term rentals of HUF 38,400 per year and rented room. To do this, you must register in the first year using form 23T101 (in 2024 the form will be called 24T101) and then declare this in an annual tax return.
This classification is usually applied for during the licensing process – so if a license has been issued, this point should be completed.
The tax is calculated at 38,400 HUF / year / bedroom – the equivalent of 100 euros per year.
The tax authority’s documentation stipulates quarterly payment on the 12th of the following month, but it is much more practical to simply transfer the entire sum in one go. The main thing is that payment is made before 31.12. of the year to the tax office (“NAV”).
The income tax return for the year must then be submitted before May 20 of the following year, which can be done in paper form or via a Java application (ANYK). If the declaration corresponds to the advance payment (which is to be assumed), there is nothing else to do.
To summarize:
a. Register when commissioning the accommodation
b. Advance payment by 31.12. of the year to the tax office (NAV)
c. Annual return (income tax) by May 20 of the following year
2. contribution to tourism development – 4% for the owner
4% is calculated on the total of all “gross income less VAT” based on the statements received from the Airbnb management company.
The deadline for annual tax returns is February 26 of the following year. The form is called 23TFEJLH and can be completed online at https://onya.nav.gov.hu .
Please have your Ügyfelkapu data ready to log in!
3. local tourist tax (“Kurtaxe”) – 4% for the guests
The tourist tax must be paid by non-residents staying in the municipality for at least one night. So it concerns the guests, not the landlord. This is a tax of 4% payable on the accommodation fee per total number of nights. This is calculated by the Airbnb administrator, but must be reported and paid by the landlord. There is an option for annual payment in the declaration, which we prefer.
Only self-managers must choose the monthly or quarterly declaration because they are liable for VAT and VAT declarations must be made at least quarterly. Both types of tax (tourist tax and VAT) are therefore declared and paid at the same time.
These steps are necessary:
a. Registration
The tax liability must first be registered with the municipal tax authority within 15 days of it arising, using the form provided for this purpose. This can be done using the ASP-ADÓ-BEJ form, which can be accessed via the municipal administration portal (OHP).
b. Tax declaration monthly / quarterly / annually
The tax return must be submitted by the 15th of the following month/quarter or year, also via the municipal administration’s portal (OHP) using the IFORM 035 Idegenforgalmi adó form.
4. municipal building tax
Many people are not even aware of its existence, but since 2019, the owner of an apartment in which accommodation services are provided must pay a building tax from the first day of the year following the registration of the apartment. The amount 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 rates have applied since 1.1.2023
- Apartments under 100 sqm: 566 HUF / sqm / year
- Apartments over 100 and under 500 sqm: 1,792 HUF / sqm / year
A 50 square meter apartment in the 8th district costs 28,300 HUF, which is the equivalent of 75 euros per year
The municipal building tax is payable in two equal installments, on March 15 and September 15.
Taxpayers can also fulfill their outstanding payment obligations to the municipal tax authority by making an electronic payment via the website https://ohp-20.asp.lgov.hu/nyitolap.
Submission form ASP-ADO-031 (Building Tax / Epitmenyado)
5. value added tax (5%)
This only applies to self-managers, as they receive the income from Airbnb or Booking directly (with VAT). If there is an intermediary (Airbnb manager), then this step is not necessary because the manager pays the net amount to the owner and pays the VAT beforehand. Self-managers must therefore first apply to the tax office for a VAT ID and then ensure that sales are declared on a monthly or quarterly basis and that VAT is paid.
The Hungarian VAT rate for the provision of vacation accommodation is 5%.
Payment is made monthly or quarterly and must be submitted on the 20th of the month following the VAT period. VAT must be paid on the same day as the VAT return is submitted.
Conclusion on Airbnb taxation in Hungary / Budapest:
What does the owner of an Airbnb accommodation actually pay?
Assumption: 50 sqm apartment in the 8th district with 10,000 euros income per year
- Flat-rate income tax allowance: 100 euros per year
- Contribution to tourism development: 400 euros per year
- Building tax: 75 euros per year
That’s 575 euros in taxes and duties on 10,000 euros
and this corresponds to a tax rate of 5.75 %
So you see, although it is complicated, it is unrivaled low and well worth the effort.
Bear in mind, however, that the manager takes a share of the income in order to communicate with guests, clean the apartment, provide a professional laundry service, and resolve faults and repairs quickly and independently. Depending on the provider, the rate is around 25% of income.
If you are interested in such an investment, please contact us and make an appointment!
