Tax on selling property in Hungary in 2026: what you pay and when

Tax after a sale is one of the questions sellers ask us most often. The good news is that you are not taxed on the full price, only on the gain, and on a shrinking share of that gain the longer you have owned the flat. From the fifth year after you acquired it, the sale is tax-free.

This article walks through the rules in force in 2026: how to calculate the gain, which costs you can deduct, how the taxable share falls year by year, and when to declare it. It is based on the Hungarian tax authority's guidance on property sales (nav.gov.hu/ado/ingatlan-adasvetel) and bank360's 2026 explainer (bank360.hu/ingatlan-eladas-adozas). If you are a foreign owner, there is a section for you further down.

Tax on selling property in Hungary: the basic rule

Income from selling a home in Hungary is subject to 15% personal income tax (SZJA). According to NAV, the tax authority, the taxable amount is not the sale price but the difference between the price and your documented acquisition and selling costs.

Only part of that gain is then taxed. How much depends on the calendar year in which you acquired the flat and the year in which you sell it. This taper is the most important feature of the Hungarian rules, and for many sellers it decides whether any tax is due at all.

When you sell a residential property, no social contribution tax is due on top of the 15% income tax.

How to calculate your gain

The formula is straightforward:

Gain = sale price − (purchase price + acquisition costs + value-adding works + selling costs)

What you can deduct

• The purchase price you paid for the flat.
• Acquisition costs: the property transfer tax you paid, your lawyer's fee on purchase and land registry fees. Our article on the full cost of buying in Budapest shows how large these items are.
• Value-adding works, backed by invoices: for example a full bathroom renovation, new windows, a new heating system or an attic conversion.
• Selling costs: the energy performance certificate, a valuation, the agency fee, advertising and your own lawyer's fee on the sale.

What you cannot deduct

Routine maintenance and repairs do not count as value-adding works. A fresh coat of paint, a new tap or fixing a broken boiler does not increase the flat's value, so NAV does not accept them as deductions. Nor can you deduct the value of your own labour, or any cost without an invoice in your name.

Selling within five years: the taper table

The year of acquisition counts as year zero. According to NAV's guidance and bank360's 2026 summary, the taxable share works like this:

Crucially, the count runs in calendar years, not months since the purchase date. If you bought in December 2021, a sale in January 2026 already falls in the fifth year after acquisition and is tax-free, even though only just over four years have passed.

What counts as the date of acquisition?

For a purchase, it is usually the day the sale contract was filed with the land registry, not the day you got the keys or paid the final instalment. If in doubt, the filing date noted on the title deed and your lawyer will help you pin it down.

Two worked examples in HUF

These examples are indicative and use rounded figures.

Example 1: selling in the 3rd year after acquisition

You bought a flat in 2023 for HUF 55 million, paying HUF 2.2 million in transfer tax and HUF 0.5 million in legal fees. In 2024 you replaced the windows and renovated the bathroom for HUF 4 million, with invoices. In 2026 you sell for HUF 72 million, with HUF 2.2 million of selling costs (certificate, agency fee, lawyer).

• Gain: 72 − 55 − 2.2 − 0.5 − 4 − 2.2 = HUF 8.1 million
• 2026 is the 3rd year after acquisition, so 60% is taxable: HUF 4.86 million
• Income tax due (15%): HUF 729,000
• If you sold in 2027 (30%): HUF 364,500. In 2028: HUF 0.

Example 2: a quick resale

You bought in 2025 for HUF 70 million (HUF 2.8 million transfer tax, HUF 0.5 million legal fees) and, after a job move, sell in 2026 for HUF 79 million. Selling costs are HUF 1.9 million and there was no renovation.

• Gain: 79 − 70 − 2.8 − 0.5 − 1.9 = HUF 3.8 million
• 2026 is the 1st year after acquisition, so 100% is taxable: HUF 3.8 million
• Income tax due (15%): HUF 570,000

If your deductible costs equal or exceed the sale price, there is no gain and so no tax. You can compare the likely tax and net proceeds for different sale years with our property calculators.

Filing and the deadline

You declare the gain in your Hungarian personal income tax return by 20 May of the year after the sale, and pay the tax by the same date. The draft return NAV prepares for you does not include property sales, so if you accept it unchanged, the sale goes undeclared.

Inherited and gifted property

With an inherited or gifted flat there is no purchase price, so the acquisition value and date follow different rules.

• Inheritance: the date of acquisition is generally the date of the deceased's death, and the acquisition value is typically the value established in the probate proceedings or for inheritance duty.
• Gift: the date of acquisition is generally the day the deed of gift was filed with the land registry, and the acquisition value is typically the value used to assess the gift duty.

The details vary from case to case: for example, whether a duty exemption applied, or when and for how much the donor acquired the flat. If you are selling an inherited or gifted flat, check your figures with a tax adviser or accountant before you rely on them.

Selling as a non-resident

If you are not tax resident in Hungary, a gain from selling a Hungarian property is still Hungarian-source income. Under most double tax treaties, gains from selling real estate can be taxed by the country where the property is located, which here means Hungary.

In practice you may need a Hungarian tax identification number and a Hungarian return, while your country of residence relieves the double taxation under the treaty, usually by exemption or a credit. Exactly how this works depends on where you live and on the wording of the relevant treaty. Our guide to buying in Budapest as a foreigner covers more of the background for overseas owners.

Common mistakes that cost money

1. Missing invoices. The renovation really happened, but without invoices it cannot be deducted.
2. The wrong acquisition date. Using the handover or payment date instead of the land registry filing, which can put you in the wrong band.
3. Maintenance treated as investment. Deducting repainting or small repairs, which can backfire in an audit.
4. A forgotten declaration. Accepting the draft return without adding the sale.
5. Forgotten selling costs. The agency fee, the certificate and your lawyer's fee all reduce the taxable gain, yet many sellers leave them out.

We cover the whole selling process, from pricing to handover, in our guide to selling your Budapest flat. If you would like us to coordinate the timing and the sale itself, see how we work with sellers, or tell us about your situation.

Frequently asked questions