Acquisition of companies with real estate assets

Acquisition of companies (“business associations”) with real estate assets may generate an obligation to pay transfer duty.
 
First of all the company must be a “business association with domestic real estate assets” as it is defined by law.
 
According to the relevant regulation, the company is considered as business association with domestic real estate assets, if the value of the real estate assets of the company exceeds the three-quarter of the assets in the balance sheet of the company, or the company owns a business association with domestic real estate assets.
 
Furthermore, at least the 75% of the company must be purchased or must be owned, either directly or indirectly, by the buyer and/or by a close relative.
 
The extent of the transfer duty is 4% up to 1 billion HUF of the value of the real estate and 2% of the value exceeding 1 billion HUF.
 
In certain cases, if provided by law, the acquisition of companies with real estate assets may be exempted from transfer duties. 

For personalized information, please contact our experts at Ecovis Hungary Legal who are happy to be at your disposal.