From 1 January 2026 the duty rules relating to replacement purchases have become more favourable. The amendment may be particularly important for those who buy a home and have already sold their previous home, or plan to sell it after the purchase.
The essence of a replacement purchase is that where a private individual buys a home, the transfer duty does not necessarily have to be paid on the full purchase price, but under certain conditions only on the difference between the market value of the home purchased and the home sold. According to the 2026 information notice of the Hungarian Tax Authority, the rule can be applied if the buyer sells their other home within five years before the purchase or within one year after it. The detailed rules are set out in the 2026 duty information notice of the Tax Authority; before a property sale and purchase contract is drawn up, however, it is advisable to examine the circumstances of the given transaction separately as well.
Compared with the earlier rule this is a favourable change, because the period preceding the purchase has been extended: instead of the previous three years, from 2026 a sale of a home within five years can also be taken into account.
What does this mean in practice?
If, for example, someone buys a home in 2026 and has already sold another home in the preceding five years, the market value of the home sold may be taken into account when the duty base is determined. If the value of the newly purchased home is higher than that of the home sold, as a general rule duty has to be paid only on the difference. If the value of the new home is lower, the duty liability may even cease entirely.
It is important, however, that the relief applies to residential property. It must therefore be examined in every case whether the property sold and the property purchased qualify as residential property for the purposes of the Duties Act. The rule cannot be applied to business premises, a garage, a plot of land or other non-residential property.
What should you look out for before a sale and purchase?
Before buying a home it is advisable to clarify, already when the sale and purchase contract is being prepared, whether the buyer may be entitled to the duty relief relating to a replacement purchase. This is particularly relevant where the buyer has already sold a home earlier, or intends to sell their current home within one year after the purchase.
Legal assistance with buying a home
When drawing up property sale and purchase contracts, our office examines in full the applicability of duty reliefs, and in particular of the replacement purchase rules. In this framework we assist with the preparation of the sale and purchase contract, with the ownership registration procedure, and with the preparation of the forms and declarations required for the Tax Authority.
If you are about to buy a home, or would like to find out on the basis of an earlier sale whether you may be entitled to duty relief, please contact our office with confidence.
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