Inheritance tax in Hungary
In Hungary , inheritance tax is levied on an acquisition due to death and gift tax is levied on a free donation between the living.
Objective and personal tax liability
The tax is designed as an inheritance tax and is incurred as a fee by the purchaser. It arises independently of the parties involved in the acquisition of property located in Hungary and extends to foreign movable property only if the acquirer is a Hungarian citizen or a foreigner living in Hungary or a legal person resident in Hungary . However, if the foreign movable property is subject to inheritance tax abroad, the Hungarian tax is not levied. Foreign property ownership is not subject to Hungarian tax. With minor changes, gift tax is levied in the same amount for free gifts among living people. There is a special feature in inheritance contracts (between living persons with regard to a future right of inheritance) and corresponding asset transfers, in which the acquirer also takes on certain consideration. There is a separate transfer fee here.
estate
The decisive factor is the market value from which the proven charges are deducted. The liabilities also include the costs of managing the estate (such as the costs of a caretaker or executor) and the usual burial costs.
Tax classes, tax rates and allowances
The heirs are grouped into three tax brackets:
- Tax class I: spouses, children, parents and orphaned grandchildren living in the household of the deceased; Stepchildren, adoptive and foster children, stepparents, adoptive and foster parents
- Tax class II: grandchildren, if not in tax class I and grandparents; siblings
- Tax class III: all other heirs
Within the tax brackets, there are also different tax rates based on the amount of the estate acquired. The tax rates differ depending on whether the property is home ownership or other property. The tax is calculated in sections, i.e. separately for each value group. Details can be found in the table below.
| Value group | Tax class I general |
Tax class I residential property |
Tax class II general |
Tax class II residential property |
Tax class III general |
Tax class III residential property |
|---|---|---|---|---|---|---|
| up to 18 million forints | 11% | 2.5% | 15% | 6% | 21% | 8th % |
| 18 to 35 million forints | 15% | 6 % | 21% | 8th % | 30% | 12% |
| over 35 million forints | 21% | 11 % | 30% | 15% | 40% | 21% |
Heirs in tax class I receive an allowance of 20 million forints (approx. 75,000 euros). The tax exemption is first offset against the lower taxable home ownership and only with an amount not used in this case against the estate value subject to the general rates. Other heirs have an allowance of 300,000 forints (approx. 1,100 euros) for movable parts of the estate.
Exemption from inheritance tax
Securities, savings and shares of a partner are exempt from inheritance tax. Existing pension insurances are also exempt provided that membership of a state or private insurance company continues. Finally, grants for certain charitable purposes are exempt.
Underage heirs only have to pay inheritance tax within two years of coming of age. If you pay in advance, the inheritance tax will be reduced by 10% for each calendar year of your early payment commenced, but not by more than 70%.
Special treatment of inheritance items
Taking over a medical practice (due to the assumption of a corresponding right to run a practice) is taxed at 10%. The tax rate is halved for agricultural and forestry areas. If the buyer is a farmer, the inheritance tax is only a quarter.
The inheritance tax for motor vehicles and trailers is also determined separately in the amount of double the fee that is incurred in the case of a paid transfer. This fee is calculated according to the cubic capacity of the car (18 to 36 forints per cm³ cubic capacity) or the weight of the trailer.
Transfer of assets against payment
Contracts between living persons on inheritance law (inheritance contracts) are taxed at the standard rate of 10% according to the fees for the transfer of assets against payment, the acquisition of residential property at 2 to 6% depending on the value. If real estate is transferred for the purpose of real estate trading or to credit institutions, the tax rate is only 2%.
Gift tax
Gift tax is levied on free gifts among living people according to the same principles as inheritance tax, although there are differences in the treatment of residential property. Here the tax rates are 1 to 9% higher than with inheritance tax. The gift tax is subject to the free donation of land located in Hungary as well as movable property, insofar as the transfer or acquisition takes place in Hungary. Since January 1, 2008, the rules on gift tax have also been applied to corporations, with the result that any debt relief between - including affiliated - companies is subject to gift tax. In principle, the tax rates of tax class III apply, unless the selling and acquiring company are 100% linked. In this case, tax class I is used.
Double taxation
Because Hungary exempts foreign property from inheritance tax and waives possible taxation of foreign movable property as soon as it is taxed abroad, Hungarian law hardly causes any double taxation. However, this is conceivable with regard to assets located in Hungary through a foreign inheritance tax law (in the case of foreign testators or heirs). To this extent, Hungary has concluded agreements to avoid double taxation in the area of inheritance taxation with Poland , Austria , Romania and Sweden .
See also
Individual evidence
- ↑ Ádam Toth: Inheritance law in Hungary , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1612
- ↑ Ádam Toth: Inheritance law in Hungary , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1610 item 165; Page of the Hungarian Tax and Financial Audit Office: Fees for the transfer of assets against payment ( Memento of the original from December 25, 2010 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ On the basis of: Ádam Toth: Inheritance law in Hungary , in: Rembert Süß (Hrsg.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , pages 1609 Tz. 161; Page of the Hungarian tax and financial auditing office: Inheritance tax ( Memento of the original from December 25, 2010 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Ádam Toth: Inheritance law in Hungary , in: Rembert Süß (Hrsg.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1611 item 167
- ↑ Ádam Toth: Inheritance law in Hungary , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1610 No. 166, 1611 No. 168
- ↑ Page of the Hungarian tax and financial auditing office: inheritance tax and fees for the transfer of assets against payment ( memento of the original of December 25, 2010 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Page of the Hungarian tax and financial auditing office: inheritance tax and fees for the transfer of assets against payment ( memento of the original of December 25, 2010 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ See the table on the gift tax page of the Hungarian tax and financial auditing office ( memento of the original from December 25, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Page of the Hungarian tax and financial auditing office, property acquisition fees ( memento of the original from December 25, 2010 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ Page Roedl: Foreign letter 04/2008, gift tax for debt waivers, [1]
- ↑ Troll / Gebel / Jülicher: Inheritance Tax and Gift Tax Act , 7th edition 2009, Vahlen, loose-leaf commentary, ISBN 978-3-8006-2402-7 , § 21 ErbStG, marginal no. 135 (Hungary)
literature
- Ádam Toth: Inheritance law in Hungary , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , pages 1571–1612
- Troll / Gebel / Jülicher: Inheritance Tax and Gift Tax Act , 7th edition 2009, Vahlen, loose-leaf commentary, ISBN 978-3-8006-2402-7 , § 21 ErbStG, marginal no. 135 (Hungary)
Web links
- Hungarian Tax and Audit Office: Tax Administration procedural fees
