Inheritance tax in Hungary: what is the tax system?

Have you purchased a property in Hungary or are you planning to invest in this country soon? Real estate taxation is an important factor when choosing a real estate investment. This includes, of course, taxes directly related to the purchase of the property, as well as tax on rental income. But also the important issue of inheritance tax. From a wealth perspective, our clients regularly ask themselves the question of inheritance tax in Hungary .

Asking the question of property taxation in matters of inheritance tax in Hungary therefore means positioning oneself on the tax level and not on the civil level.

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

This regulation, however, excludes the tax issue. It is therefore necessary to refer to national legislation on this point.

What does Hungarian law provide regarding inheritance tax?

In Hungary, the situation is advantageous, but it is necessary to distinguish between the following 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, the exemption does not apply to unregistered partners.

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

The general tax rate is 18%, in the case of 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 direct relatives are therefore exempt from inheritance tax.

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

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