"From 1 January 2009, the method for calculating the base and rate of building tax and land tax will change in Hungary, PricewaterhouseCoopers said in a Tax and Legal Alert on Monday.According to the current rules, the tax base is calculated on the basis of either the usable floor-space or the adjusted fair market value of a building or plot of land. The tax rate is HUF 900/sq metre (HU 1084/sq metre corrected for inflation in 2008) or 3% for buildings, and HUF 200/sq metre (HUF 241/sq metre corrected for inflation in 2008) or 3% for land, depending on the calculation method used.
From 1 January 2009, the tax base will be the assessed value of the building or land, and the tax rate will be capped at 0.5% for residential property and attached land or portion of land, and 1.5% for other buildings and attached land or portion of land. The assessed value will be determined by taxpayers, on the basis of the local average values set by the local authorities for model properties.
While introducing building or land tax will remain optional for local authorities, the new regulations may result in an increase in existing building and land taxes. The local average values for one square metre of usable floor-space for model properties, which serve as the basis for calculating the assessed value of a building or plot of land, will be set by the local authorities for each property category and value zone."
Source: Portfolio Online Financial Journal
19.02.2008