Last Updated on August 21, 2026
Owning a rental property abroad comes with a different set of rules than you’re used to at home, and Hungary is no exception. Whether you’re renting out an apartment in Budapest or a holiday home by Lake Balaton, the Hungarian tax authority expects you to register, report, and pay tax on that income, regardless of where you live.
The good news is that once you understand the basics, the system is fairly straightforward. Below, we answer the most common questions foreign property owners have about tax numbers, rental income, and capital gains in Hungary.
Does a Foreigner Have to Pay Property Tax in Hungary?
Hungary has a refreshingly simple tax system when compared to the sometimes bamboozling laws in other EU countries. It is a single, 15% flat rate with no brackets to figure out.
Of course, simple doesn’t mean no complications at all. How you calculate your net taxable income, who is responsible for withholding, and how you register your rental income all affect your bottom line.
On top of this, many important forms are referred to by their Hungarian name, which can also prove to be an obstacle to overcome.
This guide will help you understand the broad strokes of the system and let you know exactly what you need to do to maximise your credits and exemptions.
PTI Returns can help you navigate the Hungarian tax system with our team of tax experts who can work through your application in its native language, allowing you to rest easy knowing you’re getting the best possible value out of your tax bill.
Key Takeaways
- You need a Adóazonosító Jel (tax ID) before you can earn any income.
- Rental income is taxed at a flat 15%, but you can get deductions based on your expenses.
- There is an option for a flat 10% tax rate if you want to keep things simpler and more consistent.
- Who pays the tax can change depending on your tenant. It is your responsibility if you’re renting residentially, but if you rent to a business, it is their responsibility to withhold tax from the rent they pay you.
- Capital gains are taxed at the same flat 15% as all income, but tapering relief shrinks the taxable amount down to 0 by year 5.
Does a foreigner have to pay income tax?
If your income is Hungary-sourced, you have to pay tax on it, regardless of your tax residency. However, double taxation is unlikely.
This is because Hungary has tax treaties with over 80 other territories; this will prevent double taxation through foreign tax credits.
The deadline for tax returns in Hungary is 20 May, regardless of whether you are a resident or nonresident.
Is a tax identification number required?
Before you earn any Hungary-based income, including rental income, it is mandatory that you get a tax identification number. Without a tax identification number, you won’t be able to legally file a return or receive rental payments through compliant channels.
This applies whether you have EU citizenship or you are a non-EU alien. Though it is worth noting that EU citizens will be able to secure a tax ID more quickly, provided you have a registered address within the EU and valid identification documents.
What is an Adóazonosító Jel?
The Adóazonosító Jel (pronounced AH-doh AH-zoh-noh-shee-toh yell), is Hungary’s 10-digit personal tax identification number. It is issued by the central tax authority, NAV (Nemzeti Adó- és Vámhivatal).
It is used to identify individuals, both Hungarian and foreign, for tax purposes. It is distinct and separate from your passport and residence permit, it is found on its own document.
How to get a tax number in Hungary?
Foreign nationals apply for the Adóazonosító Jel using form T34. This must be done before you receive any taxable income. The T34 must be submitted to the NAV in person, by post, or electronically via Ügyfélkapu Client Gateway account
If you’re applying for a tax number before you secure your Hungarian address, you can go through the NAV’s Large Taxpayers Directorate. When you do this the first thing you’ll get is a temporary certificate which is issued immediately, then later, you’ll get the physical card by post.
What tax do I pay on my rental?
Hungary calls its income tax SZJA, it’s a flat 15% on your net rental income, this means your income after expenses, not the full rent. To work out what your net income is you have two options:
Actual costs method: You gather and keep receipts for your expenses, including repairs, agency, fees and insurance. Then you subtract those from the rent you collected.
Flat allowance method: Rather than tracking expenses throtugh receipts, you can just take 10% off your gross figure and then pay 15% tax on the remaining 90%.
What if my property is leased to a business, or is a short-term rental?
If your tenant is a business the company will be required to withhold 15% of the rent they pay you and transfer it directly to NAV. This covers your tax obligation and leaves you with the net amount.
If you’re renting to tourists short-term there is a separate taxation system from any income you generate. It is called “magánszálláshely-szolgáltatás” which means private accommodation service. If you register under this category, rather than paying the 15% on your actual profit, you can opt to pay a flat fee per room, per year.
How much tax do you pay on your capital gains?
Hungary doesn’t distinguish between capital gains and other forms of income, so you will be expected to pay the 15% flat income tax on any profit you make on sale of your property.
There is relief on this tax, a tapering system that reduces the taxable amount of your capital gains the longer you have owned the property. By year 5 this reaches 0.
What is the best tax strategy for rental properties?
The best way to minimise the taxes you pay on your rental income is to track your expenses. While the flat rate is more consistent, it could lead to you paying more on your income, especially if your overheads amount to more than 10% of your income.
On top of this, consider your occupancy patterns. Is it better to maintain the property as a short-term letting accommodation, or for longer, more consistent rental property.
If you want to know what the best method for you is, reach out to PTI Returns and we’ll look at your situation. You can be sure that we’ll find the method that works best for you.