{"id":669,"date":"2019-08-28T19:55:08","date_gmt":"2019-08-28T17:55:08","guid":{"rendered":"http:\/\/www.whisperingtree.hu\/blog\/?p=669"},"modified":"2021-09-22T23:26:32","modified_gmt":"2021-09-22T21:26:32","slug":"new-regulation-of-short-term-rental-in-budapest-2020","status":"publish","type":"post","link":"https:\/\/www.whisperingtree.hu\/blog\/new-regulation-of-short-term-rental-in-budapest-2020\/","title":{"rendered":"New Regulation of Short-Term Rental in Budapest from 2020"},"content":{"rendered":"\n<h2>Introduction<\/h2>\n\n\n\n<p>Short-term rental hotel activity, mainly through Airbnb and Booking.com, has became more and more popular in Hungary, especially in <strong>Budapest<\/strong>. <strong>5th, 6th, 7th<\/strong> (these three referred to as \u201cdowntown\u201d) and <strong>8th districts <\/strong>are affected, since most of the tourist tend to visit there areas.<\/p>\n\n\n\n<p>In the 21<sup>st<\/sup>\ncentury and with internet, using Aribnb, Trivago and Booking, anyone may turn\nhis apartment into a small and profitable hotel.<\/p>\n\n\n\n<p>From financial perspective, 7th district (Erzs\u00e9betv\u00e1ros) can offer the most possible gains if one is considering renting out his apartment via <strong>Airbnb <\/strong>or <strong>Booking.com<\/strong>.<\/p>\n\n\n\n<h2>Mess in regulation of\nAirbnb and Booking.com in Hungary<\/h2>\n\n\n\n<p><strong>Is it legal to do Airbnb in Budapest? <\/strong>The answer is: yes, however the whole thing is a bit complicated.<\/p>\n\n\n\n<p>In Hungary, short-term renting is regulated at two different levels:<\/p>\n\n\n\n<ul><li>Central\nlevel: by the government<\/li><li>Local\nlevel: by local governments (municipals)<\/li><\/ul>\n\n\n\n<p>Licensing\nbelongs to the local governments. The whole system is creating a mess in\nadministration, since obtaining a permit is different process in each cities\nand, in Budapest, in each district: forms are different, required attachments\nare different, parking regulations are different etc.<\/p>\n\n\n\n<h2>How you can get an Aribnb\nor Bookin.com permit in Budapest?<\/h2>\n\n\n\n<p>You may\nregister as:<\/p>\n\n\n\n<ul><li>Private\nperson<\/li><li>Private\n(Sole) enterprise<\/li><li>Company\n(Bt, Kft.)<\/li><\/ul>\n\n\n\n<p>You may do\nyou activity:<\/p>\n\n\n\n<ul><li>For\nyour sake<\/li><li>In\nthe name of someone else (i.e. managing other person\u2019s flat)<\/li><\/ul>\n\n\n\n<p>Private\npersons and private entrepreneurs may register as private hotels. I.e. they do\nnot need to reclassify their properties. Companies may get the permits as other\nhotels. <strong>This requires the preliminary\nreclassification of the property by the local government.<\/strong><\/p>\n\n\n\n<h2>Reclassification of the\nproperty<\/h2>\n\n\n\n<p>What is reclassification of the property for Airbnb or Booking.com.? Reclassification basically means the change of the official goal of usage of the property in the government records e.g. from \u201cflat\u201d to \u201cother hotel\u201d. It is necessary if one would like to rent out his apartment as a company. It is a long and problematic procedure. Reclassification also brings up the problem of parking places: whether the property has enough free parking spots nearby. <strong>If not, the owner must pay a one-time contribution for the local government which can be as high as 2 million Hungarian forints (in the 7th and 8th districts) or even 5 million Hungarian forints (6th district). Avoid this process if possible.<\/strong><\/p>\n\n\n\n<h2>Taxation of Airbnb or\nBooking.com activity in Hungary<\/h2>\n\n\n\n<p>Taxation of short-term rental in Hungary is also a two level system:<\/p>\n\n\n\n<ul><li>Central\ntaxes<\/li><li>Local\ntourist tax and local fees<\/li><\/ul>\n\n\n\n<p>Central\ntaxation consists of:<\/p>\n\n\n\n<ul><li>Corporate\nincome tax (<strong>9%<\/strong>) \u2013 If the property is\nrented as a company<\/li><li>Personal\nincome tax, proportional (<strong>15%+14%<\/strong>) \u2013\nfor private enterprises<\/li><li>KATA\n\u2013 <strong>50.000.-HUF\/month<\/strong> &#8211; if activity\ncarried out either as a private enterprise or a Bt. (business association, a\nform of company) under KATA taxation system<\/li><li>Personal\nincome tax, fixed amount (<strong>38.400.-HUF\/room\/year<\/strong>)\n\u2013 can be chosen, if one rents out his flat as private person<\/li><\/ul>\n\n\n\n<p>Local tax consists\nof:<\/p>\n\n\n\n<ul><li>Local\ntourist tax \u2013 <strong>4% in the V., VI., VII. and\nVIII. districts<\/strong><\/li><li>Parking\ncontribution \u2013 only if property is reclassified and more than one room is\nrented out as a hotel<\/li><\/ul>\n\n\n\n<h2>Legislation changes in\n2019 and 2020 in connection with Aribnb and Booking.com<\/h2>\n\n\n\n<p>The central government recognized the mess in Airbnb and Booking.com market which escalated especially in Budapest. There was a new legislation made that from 1<sup>st<\/sup> July 2019, National Tourist Service (NTAK: <a href=\"https:\/\/info.ntak.hu\/en\/index.html\">https:\/\/info.ntak.hu\/en\/index.html<\/a>) will take over the roles of licensing (short-term rental permits) and data exchange between the hotels and the state.<\/p>\n\n\n\n<p>What does\nit mean? Practically, the system will be centralized. Permits will be obtained\nfrom the sate and not from the local governments. Guest book will be maintained\nelectronically. Taxation data will be reported to the central government\ndirectly through a certified software. <strong>The\nstate also offers a free software for this called My Guestroom. It is free up\nto 8 beds and 16 persons as a capacity. That is the legal limit for private\nhotel.<\/strong><\/p>\n\n\n\n<p><strong>Big hotels are obliged to start the registration\nfrom 1<sup>st<\/sup> July 2019. Other and private hotels should register during December\n2019. The new system is legally effective from 1<sup>st<\/sup> January 2020.\nData exchange will be mandatory from next year.<\/strong><\/p>\n\n\n\n<h2>Is that a good or a bad\nchange?<\/h2>\n\n\n\n<p>We believe\nthat centralization will ease the whole process. It means more administration\non one hand but a clearer picture on the other. Licensing will be standardized\nin every district.<\/p>\n\n\n\n<h2>What additional things will\nbe necessary for the registration of Airbnb and Booking.com activity?<\/h2>\n\n\n\n<ul><li>Opening\n\u00dcgyf\u00e9lkapu (personal electronic gate)<\/li><li>Tax\nnumber (private and enterprise also)<\/li><li>Obtaining\na software. Either the free state version or any other state approved privately\ndeveloped software. We suggest <strong>Hotrest<\/strong>\n(<a href=\"http:\/\/www.hotrest.hu\">www.hotrest.hu<\/a>) as an alternative. It has\nEnglish surface and it is also capable of making invoices accepted by Hungarian\nregulation.<\/li><\/ul>\n\n\n\n<h2>Cash register and short-term rental<\/h2>\n\n\n\n<h3>Is it mandatory to use a cash register for short-term rental activity?<\/h3>\n\n\n\n<p>It is certainly a major issue whether you should use a cash machine for your short-term rental activity or not. The answer, however, is not simple.<\/p>\n\n\n\n<p>Let&#8217;s face it: in practice, it is almost impossible to operate a cash register since the guests usually find the properties by their own. So there is no operator who can provide the receipt.<\/p>\n\n\n\n<p>The legislation unfortunately requires the taxpayers to use the cash machine during the short-term rental activity (activity code range TE\u00c1OR 55.1-55.3) if the payment is made by a non-enterprise person (i.e. a private person), done in cash or by using bank cards or vouchers.<\/p>\n\n\n\n<p>You may also choose an option that you issue an invoice independent of the person of the guest.<strong> This option lets you to avoid the use of a cash register.<\/strong> But is has a serious downside also: you must report each of these invoices every month to the tax office.<strong> That is a big administrative stress.<\/strong><\/p>\n\n\n\n<h3>How to bypass the use of a cash register?<\/h3>\n\n\n\n<p><strong>So how can you avoid it in a legal way?<\/strong> If the payment is not done in cash or by card or voucher but e.g. via bank transfer, you do not have to issue a receipt by using a cash machine. In this case you should issue an invoice.<\/p>\n\n\n\n<p>How to do that in practice? Let&#8217;s assume you operate a flat with short-term rental conditions and you get your payments via booking.com airbnb etc. Guest are paying with card, however, you are paid by wire transfer. You may say that these payments are not subject of a cash register and you issue wire transfer invoices.  Therefore, no need to use cash-machine and report to tax office at all.<\/p>\n\n\n\n<p>In this case, never accept direct cash or bank card payments from the guests and\/or direct pre-payments (advance payments).<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2>How can we help you in the process of obtaining short-term rental in Hungary?<\/h2>\n\n\n\n<p>We can obtain the license in your name, find the best taxation and legal format, help in develop the contracts, provide legal (lawyer) assistance. Accompany you during the process.<\/p>\n\n\n\n<p>Quotation<\/p>\n\n\n\n<p>You may receive a quotation by filling the on-line form below.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/forms.gle\/wCouYxUhGsiob37Y9\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"ON LINE QUOTATION (\u00faj f\u00fcl\u00f6n nyitja meg)\">ON LINE QUOTATION<\/a><\/strong><\/p>\n\n\n\n<p>You also may be interested <a href=\"https:\/\/www.whisperingtree.hu\/blog\/kata-in-hungary\/\" target=\"_blank\" rel=\"noreferrer noopener\">in private enterprise and KATA rules<\/a> or in the comparison of KATA, KIVA and corporate inc<a href=\"https:\/\/www.whisperingtree.hu\/blog\/best-taxation-in-hungary-personal-income-tax-pit-kata-kiva-or-corporate-income-tax-cit\/\" target=\"_blank\" rel=\"noreferrer noopener\">ome taxation system in Hungary<\/a>.<\/p>\n\n\n\n<h2>Contact<\/h2>\n\n\n\n<p>If you have\nfurther questions or would like to request and inquiry, please feel free to\ncontact us.<\/p>\n\n\n\n<p>Web: <a href=\"http:\/\/www.whisperingtree.hu\">www.whisperingtree.hu<\/a><\/p>\n\n\n\n<p>E-mail: <a href=\"mailto:whispeirngtreebt@gmail.com\">w<\/a><a href=\"mailto:whisperingtreebt@gmail.com\">hispeirngtreebt@gmail.com<\/a><\/p>\n\n\n\n<p>Tel: <a href=\"tel:+36205484103\">+36\n20&nbsp;548 4103<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Airbnb and Booking.com have became extremely popular in Hungary in the past years. The regulation of short-term rental is about to change in Hungary during 2019 and 2020<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[337,61],"tags":[352,349,350,324,341,344,254,340,343,339,338,345,342,346,348,347,351],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Regulation of Short-Term Rental in Budapest from 2020<\/title>\n<meta name=\"description\" content=\"Major changes of short-term rental rules in Budapest from 2020: mandatory electronic registration at NTAK, 5% VAT, a software based guestbook&amp;reporting etc.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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