OTHER TAXES AND DUTIES

We would like to share with you the most important Hungarian Law amendments affecting Taxes and Duties such as ownership of motor vehicles or the inheritance of a residential building, relevant for 2025.

New rules for motor vehicles

As of January 1, 2025, the zero tax rate for hybrid and plug-in hybrid vehicles and hybrid motors, as well as the tax relief for hybrid and plug-in hybrid vehicles, will end.

An annual automatic increase of certain taxes is introduced for registration and vehicle tases. From January 1, 2026, registration tax rates payable on the first entry into service of vehicles will increase annually by the rate of inflation valid in July of the previous year. While the vehicle tax rate will already increase annually by the rate of inflation in July of the previous year from January 1, 2025. The effective tax rates for 2025 will officially be published by the tax authority before December 15, 2024. 

Hybrid and plug-in hybrid vehicles with environmental classes 5P and 5N registered until December 31, 2024, will be exempt from vehicle tax and company car tax until December 31, 2026.

From January 1, 2025, the company car tax rate will increase of about 20%, and from 1 January 2026 it will also be adjusted annually with inflation in July of the previous year.

Duties

From 2025, inheritance of listed residential buildings classified as a national monument and an apartment in such a building will be exempt from inheritance tax. 

From 2025, the rate of transfer duty for pecuniary interest related to the acquisition of ownership of motor vehicles and trailers may also be increased annually by the rate of inflation. The revalued rate for 2025 will be published by the tax authority by December 15, 2024. The level of fees payable in civil proceedings at first instance is amended.

Litigation with a lower value and lawsuits relating to home ownership or related property rights will have lower fees. The regulation provides an opportunity to make court proceedings more accessible to citizens living in less favourable financial circumstances.