Inheritance tax in Hungary: what are the tax implications?

Have you purchased a property in Hungary or are you considering investing there soon? Property taxation is a crucial factor when choosing a real estate investment. This includes, of course, taxes directly related to the purchase of the property, such as taxes on rental income. But it also encompasses the important issue of inheritance tax. From an estate planning perspective, our clients frequently ask about inheritance tax regulations in Hungary .

Therefore, asking the question of real estate taxation in relation to inheritance rights in Hungary means taking a position on fiscal, not civil, grounds.

Regarding civil aspects, you will need to refer to the European regulation applicable to all successions after 2015 , which determines which national law is applicable to civil matters relating to succession.

This regulation, however, excludes the issue of taxation. Therefore, it is necessary to refer to national legislation on this matter.

What does Hungarian law say regarding inheritance rights?

In Hungary, the situation is advantageous, but distinctions must be made between cases :

Inheritance rights for children

The children (and other direct relatives) of the deceased do not pay inheritance tax.

Inheritance rights for the spouse

The spouse (registered partner) of the deceased does not pay inheritance tax. However, this exemption does not apply to unregistered partners.

Taxation for a person with no direct family relationship to the deceased

The general tax rate is 18%, in the case of an inheritance of residential real estate or a right to residential real estate, the rate is 9%.

Also, the heir is exempt from paying inheritance tax up to a market value of HUF 300,000 (approximately EUR 1,000) in the case of inherited movable property.

Spouses, children and close relatives in the direct line are therefore exempt from inheritance tax.

For others, in the case of an inheritance of residential real estate, the rate is 9%.

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