Budapest increases taxes on rent

Hungary has announced a sharp increase in taxes on short-term rental housing in Budapest. The monthly amount, for example, through Airbnb or Booking, will increase almost fourfold – from 38,400 HUF (about $105) to 150,000 HUF ($405).

At the same time, from 2025 to 2026, the authorities stop issuing new licenses for this type of lease. These measures, developed by the Ministry of Economy, are aimed at regulating the rental market and reducing the burden on the capital's infrastructure.

Due to the fact that a prerequisite for obtaining a digital nomad visa is rented or own housing, this innovation can become exciting for freelancers.

The reasons for such changes

Real estate prices in Budapest have almost quadrupled in the last ten years, which has made housing unaffordable for many local residents. Short-term rentals have led to numerous complaints, including noise, debris, and rising prices for long-term rentals.

The issue is particularly acute in the sixth district of the city, which is popular among tourists. In September 2024, local residents voted for a complete ban on short-term rentals from 2026. In response, the mayor promised to tighten the rules by the end of this year.

Analysis and expert opinion

Experts believe that this step may lead to better housing conditions for local residents, but may reduce income from tourism. At the same time, it is expected that the long-term rental market will become more attractive.

Comparing with similar measures, it can be noted that such an initiative is not unique. The problem of excessive tourism is relevant for many popular destinations. For example, Venice and Barcelona are also implementing strict restrictions on the use of real estate for rent to tourists.

In Greece, from 2025, the authorities plan to reduce the number of cruise liners on popular islands and encourage long-term rentals, exempting them from taxes.