Blog

Possible tax lift on long term rental income

A new proposal for the year 2018 would lift the 14% tax on rental income. 

According to portfolio.hu business portal, the government is planning to lift the social contribution tax EHO currently in law for rental incomes above 1 million HUF/year. In the current system, landlords must pay personal income tax (15%) on rental income, plus EHO, if their annual rental income from the home reaches or exceeds HUF 1 million. 

Such an abolishment of the EHO would be no doubt be welcomed by many homeowners, as an altogether 29% tax on rental income feels unfair to many, especially compared to some of the super low, annual taxes paid by airbnb or short term renting property owners in Budapest.