Possible tax lift on long term rental income

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

Possible tax lift on long term rental income

According to 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. 


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