According to the amendment of Act LXVI of 1998 on Health Contributions (hereinafter: Eho tv.)

From 1 January 2018, resident individuals will no longer have to pay a 14% health contribution on income from the rental of real estate exceeding HUF 1 million.

The new provision is applicable for the first time to income from the letting of real estate in the month of January 2018.Income from the letting of real estate is income forming the basis of the personal income tax advance included in the consolidated tax base, and on which no obligation to pay contributions and social contributions arises. According to Article 5(2) of the EO Act, the general obligation of 19.5 per cent does not arise in connection with the said income.

Important! If a private individual rents a property to a non-paying agent, the NAV is not automatically informed of the income earned. For this reason, the individual must supplement the draft income tax return prepared by the NAV with this income, which should not be automatically accepted, as the original draft return will not include all income earned in the tax year.