In the present system, homeowners must pay personal income tax on rental income, plus EHO, if their annual rental income from the home reaches or exceeds Ft 1 million.

The 14% tax is levied on all such income, not only the part above Ft 1 million.

This system penalises high home rents but homeowners have avoided it by, for instance, reporting lower rents to authorities.

Source: Hungary Around the Clock

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