Important Change in Hungarian Property Taxation from 2019
With regard to the rules that will come into effect in January 2019, many may wonder whether they do not need or should not continue to bill the utility costs of an individual lease? Does the landlord keep the decision or have a legal obligation? How does this regulation apply to co-costs and home insurance?
The adózóna.hu expert summarized the relevant information:
From 2019, utility costs are not part of revenue.
From the Personal Income Tax Law Book, according to Section 17 (3a) of the Lease Act, revenue from the sale of a property (such as, in particular, public utility services) provided by another person for the use of the property by a landlord to the lessee, in proportion to the use of the tenant, is not considered to be income.
This means that what the tenant consumes does not need to be recalculated and considered as income, but the tenant can stick to it. Home insurance and shared costs are not included.
If the common cost includes the water and sewage charges, the common cost should be separated and the amount of water reduced by the sewage fee must be invoiced to the tenant.