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5 things you need to know about the sale of real estate holding companies in Hungary:

1. Duty payment liability must be calculated by topographical numbers in Hungary, therefore there is a chance that the whole transaction is taxed at 4%. We should always ask the updated title deeds.

2. Unfortunately, if we forgot to report the purchase, the duty elapsing period starts from the date we completed the report of the transaction or the tax authority get knowledge of it.

3. For duty payment obligation calculations, the total asset value should be corrected by liquid assets, receivables, deferred income, and loans.

4. The Hungarian Act on duty sets a 75% threshold of shares both on the seller and buyer side for the duty obligation.

5. For CIT (Corporate Income Tax) purposes we have to consider not only the individual numbers of the asset owning company but the aggregated group numbers as well.

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