Find your property!

Lease of arable land in Hungary

By bencel
October 1st at 2:54pm

Pursuant to Section 3, point 53 of Act CXVII of 1995 on Personal Income Tax (hereinafter: PIT Act), leasing arable land means lease of land by a private individual owner or beneficial user of arable land for agricultural, forestry or fishing purposes, based on a written agreement for one or more years for which the owner or beneficial user is paid a fee. Income from the leasing of arable land - if not tax exempt - is recognized as income taxable separately on the whole at the tax rate of 16 per cent. Such income is tax exempt if the term of the lease, as stipulated in the relevant contract (agreement), is five years or more. If the above-specified contract is terminated for any reason (not including reasons beyond the parties’ control or the summary termination of the lease contract) within five years the tax that was not paid under the exemption must be declared and paid with a default penalty. The private individual must assess and pay the tax, increased by default penalty, as a liability for the year of termination of the contract.4



http://en.nav.gov.hu/
back to the guidance
Get in touch!
Error boy
Your message was sent, thank you!