21 June 2025 Péter Karner

Tax on residential letting in 2025 — how rental income is taxed in Hungary

Q: Do you need to issue invoices or obtain a tax number?

• Invoicing: as a private individual you are not obliged to issue invoices, but it is advisable to produce at least a simple receipt for every payment.• Tax number: you do not need to obtain one if you only let residential property, which is exempt from VAT. ⋮

Q: When and how must letting income be declared?

• Advance tax: the advance is payable quarterly, by the 12th day of the month following each quarter.• Filing deadline: the full annual return must be filed by 20 May of the following year in the eSZJA system. ⋮

In 2025, too, many people let property as a supplementary or main source of income. Yet the tax treatment of residential letting raises a great many questions among private landlords. This post sets out what tax is payable in 2025 on income from letting a home, how costs can be deducted, and what filing deadlines to expect.

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What counts as income from letting a home?

If you let your property as a private individual, whether on a lease or a sub-lease, and receive regular payment for it, the rent you receive counts as taxable income. The income has to be declared every year and the tax paid on it.

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What tax is payable on letting in 2025?

Income from letting a home is subject to 15% personal income tax (SZJA) in 2025. The good news for landlords is that from 2025 the social contribution tax (SZOCHO) no longer applies to this income.

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How can costs be deducted?

There are two methods of accounting for costs, depending on the records you keep:

1. The flat 10% cost allowance

A simple option if you would rather not collect invoices: 10% of the gross income automatically counts as cost, and the 15% personal income tax is payable on the remaining 90%.

2. Itemised cost accounting

If you keep precise records of the expenses connected with letting (maintenance, common charges, refurbishment and so on), the documented amounts can be deducted from your income. In this case the depreciation of the property can also be accounted for.

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Do you need to issue invoices or obtain a tax number?

• Invoicing: as a private individual you are not obliged to issue invoices, but it is advisable to produce at least a simple receipt for every payment.
• Tax number: you do not need to obtain one if you only let residential property, which is exempt from VAT.

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When and how must letting income be declared?

• Advance tax: the advance is payable quarterly, by the 12th day of the month following each quarter.
• Filing deadline: the full annual return must be filed by 20 May of the following year in the eSZJA system.

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New in 2025: the simplified eSZJA process

In 2025 NAV, the Hungarian tax authority, introduced a new question-and-answer based eSZJA assistant, which is particularly useful for private individuals living on rental income. It helps you find your way among the forms and reduces the chance of filing incorrectly.

Taxation of rental income in 2025 has become simpler than in previous years, but it is important that everyone understands the rules. If you are unsure, it is worth consulting an accountant or asking NAV for help within the eSZJA system.