Hungary's Tax Authority Issues Rental Contract Guidelines

The National Tax and Customs Administration (NAV) has reminded renters and landlords in Hungary to always maintain a valid written lease and to record monthly rent payments. It recommends using bank transfers that include the payment period and the label “bérleti díj” in the transaction note, especially as a surge of university and college students is expected to seek accommodation.

NAV clarified that private individuals renting out property generally do not need a tax identification number unless they choose a business model that requires it. Rentals that are not for tourist purposes are normally VAT‑exempt. Rental income can be reported either by itemising deductible expenses (utilities, renovation costs, depreciation) or by applying a flat 10 % cost allowance. Taxpayers must pay quarterly advance tax and declare the net rental income in the annual personal income tax return at a 15 % rate. Additionally, landlords may deduct the rent of another dwelling they occupy for over 90 days from their rental earnings.