The Hungarian government is expected to submit a proposal that would levy a flat-rate tax on the rental market – an annual HUF 1,500 per square meter – in order to make the market more transparent, Hungarian daily Magyar Idők reported today.

Ministerial commissioner for commercial policy Kristóf Szatmáry told the paper that under the proposal, which is expected to be submitted to the Hungarian Parliament by the end of April, Hungarians would be eligible to register up to three rental properties apiece with the National Tax and Customs Authority (NAV). 

According to information posted by NAV on its website last week, Hungarians who offer properties for rent using “online platforms (such as Airbnb or similar systems)” are required by law to have a tax number and choose an applicable option for paying taxes on revenue from such activities, Hungarian news agency MTI reported.

It was reported at the end of March that an annual flat tax of HUF 1,500 per square meter would be levied on homes rented through sharing economy website Airbnb. The number of listings posted by Hungarians on Airbnb rose by approximately 70% over the last year as compared to the previous year, according to a report at the beginning of April.

Resource: Budapest Business Journal