Budapest imposes building tax on Margaret Island

The municipal council of Budapest voted to introduce a property tax on buildings on Margaret Island. The proposal was tabled by Mayor Gergely Karácsony and approved with 18 votes in favour, 12 against and 2 abstentions. From 1 January, owners of real estate on the island worth more than HUF 1 billion (EUR 2.4 million) will pay a 1 percent tax on the value of their property.

Setting an example for the districts, the Municipality of the capital will introduce a value-based building tax on Margaret Island, which it directly manages: from 1 January, a 1 percent tax will be payable on private luxury properties worth more than HUF 1 billion, the Municipal Assembly decided on Wednesday, napi.hu reports.

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With the adoption of the proposal, the body asked Gergely Karácsony to make a proposal to the district municipalities to review their building tax regulations and to abolish any tax exemption for flats with a market value of more than one billion forints.

Gergely Karácsony stressed that their aim is to widen the scope for a fairer tax system, MTI reports.

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Source: MTI, napi.hu