Bérletadó

Bérletadó is a Hungarian term that translates to "rental tax" or "property tax on rental income." It refers to a tax levied by local municipalities in Hungary on income generated from renting out residential or commercial properties. The specifics of bérletadó, including the tax rate and deductible expenses, can vary significantly from one municipality to another.

Generally, property owners who earn rental income are required to register with their local tax office and declare their rental earnings. They can then deduct certain expenses associated with the rental property, such as maintenance costs, property insurance, and interest on mortgages, from their gross rental income to arrive at a taxable profit. The tax is then calculated based on this profit at the municipality's specified rate.

The purpose of bérletadó is to provide local governments with a revenue stream to fund public services and infrastructure within their jurisdiction. It also serves as a mechanism to ensure that property owners generating income from their real estate contribute to the local tax base. It is important for landlords to be aware of the specific regulations in their municipality concerning bérletadó to ensure compliance and avoid penalties.