New Effective Fees and Stamp Duties related to the Construction Activity and the Companies Incoporation

Budapest, 22 March 2017

The Hungarian Parliament has recently enacted legislation relating to certain fees and duties that will reduce the procedural costs for corporate entities doing business in Hungary. The new rules are effective as of 16 March 2017.

Proceedings for occupancy permits, the acknowledgement of occupancy, and proceedings of special authorities relating to new residential buildings (with less than 300 sqm of net floor space and constructed on the basis of a building permit) are now exempt from duties and administrative service fees.

Likewise, procedures related to the merging of land plots are exempt from duties. The amount of the duty for a certificate issued by a building authority and for requesting a supervisory action by the construction supervisory authority will be reduced to approximately 10 EUR per application.

Another relevant change is that the corporate incorporation procedure of a limited liability company, sole proprietorship, general partnership and/or limited partnership are exempt from stamp duties and publishing fees.