An owner is allowed to rent maximum 3 flats through Airbnb according to the draft law by the Government that soon will be placed before the Assembly of the Hungarian Government. The proposal affecting the Airbnb market as well plans to put an annual flat tax of HUF 1,500 per square meter on homes rented via Airbnb.
Only 3 flats can be rented through Airbnb
An annual flat tax of HUF 1,500 per square meter would be levied on homes rented via Airbnb under a proposal submitted by the ruling Government to the cabinet. The proposal calls for capping the number of flats that any one person that can rent through Airbnb at three in Hungary.
Grey market avoidance is also a priority
Proponents of the new rules argue that letting out rooms is now a part of the grey market, but if taxed reasonably, the practice could still continue and still be profitable. Tax audits on the sector could be stricter, proponents said, and some in the government are reportedly pushing for a law that would make all rules that apply to hotels to be extended to private accommodation letting. The bill could be put before Parliament along with next year’s budget,
Lack of compliance can be a problem
Akos Niklai, President of the Hungarian Association of Hotels and Restaurants and Vice President of the HOTREC, the umbrella association of Hotels, Restaurants and Cafés in Europe recommended registration for online services. According to the organization, only services abiding by the law should be allowed to operate. The Hungarian Association of Hotels and Restaurants also support the registration of online sharer of short term flat rentals in the member countries of the European Union.
The Secretariat for Tourism of the Hungarian Ministry for National Economy said that they examined how the system worked in other European countries. According to their view in case of private vacation rentals and other service-based rentals, such as the Airbnb the problem is not the lack of regulation but the lack of compliance.
