The rules on short-term letting in Budapest changed fundamentally in 2026. According to a May 2026 round-up by the Hungarian financial site Pénzcentrum, Airbnb-style accommodation in flats has been banned in District VI (Terézváros) since 1 January 2026, and a citywide moratorium runs until the end of the year: no new short-term accommodation can be registered anywhere in Budapest. If you are about to buy a flat to let, or already own one in the centre, it is worth rethinking your strategy.
In this article we cover what changed, what it means for existing owners and for new investors, how letting income is taxed in Hungary, and when a long-term or mid-term let is the sensible alternative.
What changed in Budapest's Airbnb rules in 2026?
Under current Hungarian rules, each district can set by decree how many days a year a flat may be used as short-term accommodation, and that number can be zero. Terézváros did exactly that. Hungary's Supreme Court (Kúria) found the district decree lawful in November 2025, so the ban took effect at the start of 2026.
The citywide moratorium is separate and covers all of Budapest: until 31 December 2026, no new private or other short-term accommodation can be registered. Units that were already registered and operating lawfully outside District VI may continue, as long as their district's rules allow it.
In practice, a flat you buy in Budapest in 2026 cannot get a new short-term accommodation registration, and in District VI even an existing one can no longer be used.
Which districts restrict short-term rentals?
District VI is the first with a full ban, but it is not the only district where the issue is live. We set out the autumn 2026 picture in detail in our article on Budapest rental yields and letting rules. In short:
| District | Position in autumn 2026 |
|---|---|
| VI (Terézváros) | Full ban from 1 January 2026 |
| VII (Erzsébetváros) | No new operating permits in residential buildings since autumn 2025 |
| VIII (Józsefváros) | Tiered restriction in preparation |
| I (Castle District) | Draft decree expected after a public consultation |
| XIII | Held an online consultation |
| Budapest as a whole | Moratorium on new registrations until end-2026 |
Sources: Pénzcentrum, May 2026, for District VI and the moratorium; district announcements and 2026 press reports for the other rows. Indicative only.
District decrees can be amended, and some decisions may face legal challenges that are pending or yet to be filed. The citywide moratorium ends in 2027, but several districts may have their own rules in place by then. Before you buy, always check the specific district's current decree and the building's deed of foundation, not the promise in the listing.
What it means if you already let a flat
If your flat is in District VI and you have been letting it short-term, you have three realistic options: a long-term let, a mid-term let under a genuine tenancy agreement, or a sale. Since the ban, the number of long-term rentals on offer in the district has risen, so tenants have more choice. A well-furnished, well-kept flat still lets quickly, but your pricing has to reflect the new supply.
If your registered unit is in another district, you can keep operating for now. It is still wise to prepare a plan B in case your district tightens its rules from 2027: know what the flat would earn on a long let, which furniture would stay, and how quickly you could switch.
If you decide to sell, our property sales service explains how we price and prepare a flat for today's more balanced market.
What it means if you are buying to let now
For a new investor the key rule is simple: do not buy on Airbnb numbers. If a listing argues its case with short-term rental income, under the 2026 rules that figure is very likely out of reach.
According to Global Property Guide data for Q1 2026, gross rental yields in Budapest typically sit between 4.5% and 5.5%, and net yields after costs and tax at roughly 3–3.5%. Those figures reflect long-term letting, and that is the basis to work from. Our own conservative worked example, with every cost priced in, came out lower still, so always recalculate for the specific flat. Our property investment calculators let you vary price, rent and costs yourself.
Short-term vs long-term letting compared
| Factor | Short-term letting | Long-term letting |
|---|---|---|
| Income stability | Seasonal, varies month to month | Predictable monthly rent |
| Effort | Constant: cleaning, guests, pricing | Low: tenant selection, a few tasks a year |
| Rules | Vary by district; banned in District VI; no new registrations until end-2026 | Standard residential tenancy, unaffected by district limits |
| Tax for private individuals | More complex: income tax, social contribution, tourist tax, NTAK reporting | 15% income tax, no social contribution tax |
| Furnishing and wear | High, frequent replacement | Moderate |
| Regulatory risk | High | Low |
The table shows general features; your exact tax position depends on your circumstances and, for non-residents, on the tax treaty with your home country.
How letting income is taxed in Hungary
As a private individual, income from long-term residential letting is taxed at 15% personal income tax. There are two ways to work out the taxable amount, and according to the Hungarian tax portal Adózóna you cannot combine them:
- 10% flat cost allowance: 90% of the rent is taxable and you do not need to prove any costs. Simple, and often better if your costs are low.
- Itemised costs: you deduct the actual costs of letting, backed by invoices. This can pay off in a year with a major repair, refurbishment or new furniture.
If your tenant is a private person, you pay tax advances quarterly. Short-term letting falls under different rules as an accommodation service, so always run those numbers with an accountant.
If you receive HUF 3 million in rent a year and choose the 10% flat allowance, the taxable amount is HUF 2.7 million and the tax HUF 405,000. If that year you also had HUF 500,000 of invoiced repairs, itemising would bring the taxable amount down to HUF 2.5 million. It is worth checking which works better each year.
Making a long-term let work
Tenant screening. Ask for an introduction, an employer's letter or proof of income, and a previous landlord's reference where possible. A good tenant who stays for years is worth more than a slightly higher rent with frequent turnover.
A written contract. Set out the rent, annual indexation, who pays utilities and the service charge, maintenance duties, notice periods and the flat's condition. In Hungary, a notarised move-out declaration speeds up recovering the flat considerably if there is a dispute.
Deposit. A deposit of several months' rent is established practice. Settling it stays dispute-free if you make a handover record with photos, an inventory and meter readings.
Management. If you would rather not handle the flat day to day, our sister company Rentify specialises in long- and mid-term letting.
When a mid-term let (1–6 months) makes sense
Mid-term letting serves people moving to Budapest for a few months: relocating professionals, project staff, visiting academics, or families looking for a temporary home while their own is being renovated. They usually want a furnished flat they can move into straight away, and will often pay somewhat more than a long-term tenant.
The distinction matters. A mid-term let is a residential tenancy when there is a genuine written lease with a tenant who actually lives in the flat. If the arrangement is really a hotel-style service, with short stays and nightly rates, it can fall under the accommodation rules. Have a lawyer review the set-up for your case, because getting round the moratorium or a district ban carries penalties.
The mid-term model suits central districts close to corporate offices, universities and hospitals. In return, expect more void periods and more frequent tenant changes than with an annual lease.
Budapest and the Costa del Sol: two markets, same direction
Budapest is not alone. On the Costa del Sol, holiday letting rules have tightened too: Málaga suspended new licences for three years, and since April 2025 a new tourist let needs the approval of three-fifths of the owners in the building. If you are weighing both markets, our article on holiday letting on the Costa del Sol helps with the comparison. The lesson is the same in both places: base your numbers on a model that works legally over the long run.
If you are looking for an investment flat, or want to switch an existing one to long-term letting, our investment advisory works through the numbers with you. Our Budapest market page covers the differences between districts, and for a specific question you can contact our team.
Frequently asked questions
Can I rent out my flat on Airbnb in Budapest in 2026?
If your flat already has a registered, lawfully operating short-term accommodation unit and is not in District VI, it can continue under its district's rules. No new short-term accommodation can be registered in Budapest until 31 December 2026, and short-term letting has been banned in District VI since 1 January 2026.
What happens in 2027 when the moratorium ends?
District decrees will decide, which is exactly why several districts are preparing their own restrictions. Always check the current rules of the specific district before buying.
How is long-term rental income taxed in Hungary?
Private individuals pay 15% income tax. You can choose either the 10% flat cost allowance, so 90% of the rent is taxed, or itemised costs backed by invoices, but not both. Non-residents should also check the tax treaty with their home country.
Is a mid-term let of a few months legal in Budapest?
Yes, if there is a genuine residential lease with a tenant who lives in the flat. If the arrangement is really a hotel-style service, it may fall under the accommodation rules, so have a lawyer review the contract.
Is it still worth buying an investment flat in District VI?
For long-term letting, yes, if the price reflects that yield. Numbers built on short-term letting are not realistic in the district today.
This article is general information, not legal, tax or investment advice.
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Dr. Gősi Georgina is Monvero's legal advisor. She looks after contracts, legal due diligence and the legal side of tax questions. This article is for general information; for advice on your own situation, get in touch.
