At the beginning of 2016, new rules took effect in Hungary. The applicable VAT rate to residental property sales was reduced from 27 percent to 5 percent. This Tax cut will valid until 2019.
Concerning the building you have to take the following rules into consideration:
- It must be new
- It must be residential according to the law.
- The useful floor space must be within a limit.
- It must be selling product and not providing a service.
I would like to draw your attention to a very important thing.
The VAT law has its own conception what is considered as residential. It declares that the following places are not included, even if they are integrated parts of the house:
- Shop / Store
The invoice must contain the garage separately and invoice it by 27 percent.