Unfortunately many foreign property owners are not really aware of the regulations concerning income tax in Hungary.
The main problem is that they are not really aware of the consequences either.
5 years
Your tax liability can be claimed by the Hungarian Tax Office retrospectively for 5 years.They can start international collection processes as well and use the tax office in the homeland of the landlord to collect the outstanding if necessary.
Double taxation?
Even if the tax is paid after the rental income in your country, you can have problems.According to double taxation treaties, in most cases tax must be paid according to the Hungarian regulations in Hungary.The income tax rate is 16% in Hungary. If the rate is higher in your country than you might have to pay tax there as well after the different.
Attention
Not all of the property management companies are arranging your tax issues by default.Some of them are not even have an inhouse accountant to help.
Deadline of the 2014 tax return submission is 20th of May, 2015.If you have unsettled tax liabilities for year back, of course it is better to submit it late than to get an unexpected penalty.
If you have specific questions please contact our tax expert.
