Mazars Hungary Tax Newsletter No. 04/2009

Due to the high property transfer duties, it was previously more expedient for real estate development and sales companies not to sell larger real estate properties developed or kept for sale as an asset, but the sale of shares of the property holding company, even one specifically created by way of de-merger. The legislative changes promulgated on 8 July 2009 in Act LXXVII of 2009 on the “Amendments aimed at the transformation of the allocation system of public charges” which is the subject of our present newsletter, will have a fundamental impact on this business structure.