•
As a general rule, real estate
acquisitions are not subject to VAT.
However, if the sale of the real property is made
within two years of the issuance of the final occupancy
permit or the sale is made before the first actual occupation of
the property, the sale may be subject of VAT. The current VAT
is 27% of the purchase price.
Î
asset deal vs. share deal
•
Acquisition of the shares of a company owing a property may
generate tax savings in terms of stamp duty for the acquirer,
but it may also have other indirect tax consequences (e.g.
potential future tax liabilities, no possibility of the depreciation).
Î
acquisition of shares in a company holding
real estate in Hungary
•
The acquisition of a legal entity which qualifies as a «company
holding domestic real estate» (
belföldi ingatlanvagyonnal
rendelkez társaság
) is also subject to stamp duty. A legal
entity qualifies as a «company holding domestic real estate»,
if at least 75% of its booked assets consist of Hungarian real
properties, or otherwise the entity owns (directly or indirectly)
at least 75% of the shares of a company holding domestic real
estate.
Investor Guide to Europe 2014 | 41
