VAT up to 25% in Hungary from July 1
As part of the conditions for the latest IMF package to Hungary, the new Hungarian government introduced tax modifications, the current 20% VAT will be increased to 25%. The increased VAT will apply to every invoice issued after the 1st of July, 2009. (VAT remains 19% in Slovakia.)
The VAT increase will affect buyers of newly built property, as contracts signed before the tax modification will not be exempt. This means that developers must apply the VAT valid at the time of the transfer of the purchase price installment. So practically there is a 5% price increase on the remaining installments of the purchase price. If you fall into this category, in order to avoid the +5% increase, the remaining installment(s) must be transferred before 30th of June 2009.
There is no VAT on resale property or rental income.
Foreclosed BMV apartments for sale in Budapest
Amazing, you can find an apartment in central Budapest for 20,000 euros!
Here are a number of interesting offers from the banks, significantly below market value, which are worth considering as an investment. Remember you make your money when you BUY real estate, you just realize it when you are selling. Most of these studios and apartments must be renovated and furnished before they can be let, but the yield is significant.
Property Management
CE Invest is proud to announce that we have doubled our property management portfolio in Budapest in the last 6 months. We have waiting lists of tenants in most locations, taking on apartments to rent from other property management companies just to meet the demand. Our furnishing and apartment-renovating teams are busy creating visually appealing and highly functional rental apartments in the city for corporate tenants, foreign students, and local young professionals.
