How to make money from investment property in Hungary
May 13th, 2007Hungary is fast becoming a hotspot for residential property investors in Europe. City apartments in Budapest are appreciating in value by up to 20% each year and rental demand on long-term lets from locals is on the up too. For an apartment situated in District 5 or 6 on the Pest side of the River Danube investors can expect solid annual rental returns of up to 8% on their investment property in Budapest. With the right type of currency mortgage in place Budapest apartments could easily turn a handsome net operating profit that would more than keep you in new clothes!
When it comes to selling property in Hungary, it pays for investors to consider their legal set up. A Hungarian property purchased as a limited liability company attracts CGT at 16% only when the property is sold. Compare this to selling the apartment as an individual – a decision that will incur CGT at a rate of 20%.
