Taxation of Apartment Rentals 2026 | Complete Guide for Landlords

Income from renting out an apartment is not "extra money" in Hungary – it is considered taxable income just like a salary, and the landlord is responsible for reporting, calculating, and paying the tax themselves. Many individual landlords stumble precisely at this point: not because they do not want to pay tax, but because they do not know the exact rules or neglect the reporting obligation.

This guide presents the basic logic of apartment rental taxation – the goal is for you to know what questions to ask your accountant and what decisions to make before renting out your property.

Tax Law Basis of Rental Income

In Hungary, income from renting out an apartment is classified as income from independent activity for personal income tax purposes. This means that:

• The landlord can carry out this activity as an individual; a sole proprietorship or company is not required.

• The income must be reported annually in the tax return, regardless of whether the tenant is an individual or a company.

• The rate of personal income tax (SZJA) payable on the income is currently 15%, but this should always be confirmed for the given tax year.

Reporting Obligation: When and How?

Renting out an apartment – unlike short-term, tourist accommodation rental – does not in itself require a separate business or accommodation registration license if it is a traditional, long-term rental. However:

• Income from the rental must be reported in the tax return following the tax year.

• In certain cases, a separate reporting or registration obligation may also arise.

• For short-term, tourist rentals, NTAK registration and related rules also apply.

Practical advice: the exact method and deadline of the reporting obligation depend on your situation, so always clarify it based on the current NAV (National Tax and Customs Administration) guide or an accountant before renting out the property.

Expense accounting: flat-rate or itemized?

The landlord must choose how to account for the expenses that can be offset against the income.

1. 10% Flat-Rate Expense Ratio

This is the simpler solution: 10% of the income can be automatically deducted as an expense without invoices and receipts, and the personal income tax (SZJA) must be paid on the remaining amount. This is advantageous if the actual, invoiced expenses are lower than 10% of the income, or if the landlord prefers simplicity.

2. Itemized Expense Accounting

In this case, the landlord can deduct the actual, invoiced expenses from the income – these may include, for example:

• renovation and maintenance costs,

• amortization, i.e., depreciation,

• other proven expenses directly related to the rental.

This method is worthwhile if significant, invoiced expenses were incurred on the property during the given year. It is advisable to decide on the chosen method in advance, ideally together with an accountant.

Social Contribution Tax: When is it relevant?

Income from renting out an apartment may also be subject to social contribution tax in certain cases and above a certain income level. The exact threshold may change annually, so this must always be determined based on the official NAV guide or an accountant for the given tax year.

The Most Common Mistakes When Renting Out

• Failure to report income – believing that renting out a single apartment is not subject to a reporting obligation.

• Choosing the wrong expense accounting method – which can lead to unnecessarily high tax burdens.

• Mixing up the rules for short-term and long-term rentals – especially when the same property is utilized in multiple ways.

• Incomplete documentation – with itemized accounting, the lack of invoices and receipts can cause serious problems later.

How Midas Management Helps

In addition to daily property management tasks, Midas Management supports the Owner in fulfilling tax and administrative obligations related to renting.

• Income and Expense Records: regular record-keeping of rental-related income and expenses, and preparation of monthly financial reports.

• Personal Income Tax Return: preparing the Owner's annual personal income tax return related to rental activity based on the available data, or, if necessary, checking the draft tax return prepared by the tax authority.

• Representation before Tax Authorities: representing the Owner before NAV regarding personal income tax related to rental activity, and before the competent municipal tax authority regarding local taxes associated with property utilization.

• Handling and Preservation of Receipts: coordinating the documentation related to maintenance and renovation works, as well as preserving the rental-related receipts in their custody in electronic format for the legally required period.

(Tax representation only extends to the tax obligations related to property rental specified in the contract; it does not include performing any tax, accounting, or bookkeeping tasks beyond this.)

Frequently Asked Questions

Do I have to pay tax if I only rent out a single apartment?

Yes – income from renting out a property is taxable regardless of the number of apartments, and it is subject to a reporting obligation.

Which is more beneficial: the flat-rate expense or itemized accounting?

This depends on the amount of verifiable, invoiced expenses incurred during the given year. In case of significant investments, itemized accounting may be more favorable; this should definitely be calculated with an accountant.

As an owner living abroad, how can I fulfill the Hungarian reporting obligation?

It is advisable to hire an accountant and a property management partner operating in Hungary, who will monitor deadlines and take care of the necessary administration.

Have the tax rules changed for 2026?

Tax rules and thresholds may change annually. Always base your actions on the official NAV guide or accountant's confirmation for the given tax year.

Would you like the administration related to apartment rentals to be off your hands?

Contact us for a free consultation.

+36 30 551 1722 · info@midaspm.com · Dorottya utca 6., Budapest

This article is for general informational purposes and does not constitute specific tax or legal advice. Always consult with an accountant or tax expert before making decisions regarding your specific situation.