​6 Things You Need to Know if You Rent Out Your Apartment


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In August and September the market of apartments for rent always gets busier, since university and college freshmen begin their rush for a place to live during their school years. Thus if you have an apartment to sublet near a university or college, you can sublet it now almost for sure. But it’s worth to pay attention to the following things.


1.You need to sign a contract with the tenant, which contains the conditions of the sublet. The tenant needs to get a tenancy contract and a receipt after paying the rent.

2.If you don’t sublet your apartment for tourists, you don’t need to pay VAT, thus you don’t have to have a tax number, but giving a receipt to the tenants after they paid the rent is necessary.

3.You have to make a documentation of the tenancy, which includes the incomes and the costs.

4.Your income from subletting can be determined using 2 methods: taking into account your actual costs like utilities, reconstruction costs and value decrease or calculating with 10 percent off.

5.You have to pay a 16 percent tax after your income from subletting quarterly in advance, and you also have to mention your income in your tax return.

6.If the income from subletting exceeds an annual HUF 1 million, you have to pay a 16 percent tax and a 14 percent – but at most HUF 450 thousand – health care contribution as well.

Source:www.penzcentrum.hu

 

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