In recent years, real estate transactions in Hungary have accelerated greatly as the housing market steadily continues to rise, especially in the country’s capital, says DLA Piper Hungary.
Financial investors also continue to venture into the Hungarian real estate market, and it is important for them to consider the various circumstances under which paying value-added tax might be an unforeseen requirement.
Although investors who purchase real estate properties are not generally required to pay VAT, there are specific exceptions to this rule. For example, any real estate property may be subject to VAT if it is still within two years of first receiving its certification confirming the premise as an officially completed property.
More information on the VAT implications of Hungarian real estate properties is featured in in the latest edition of Advocatus, the legal blog of DLA Piper Hungary.