The recent amendment of the Luxembourg - Hungary double tax treaty will result in a sharp decrease of Luxembourg-based schemes for Hungarian real estate transactions. Those groups which currently use such schemes for holding their Hungarian real estates will need to react fast.
Lease services often lead to uncertainty from a VAT perspective. Some services which seem like lease at first glance do not meet the criteria for “lease” for VAT purposes. The improper classification can lead to surprises: on the one hand the lessor’s deduction right can be challenged, on the other hand a seemingly VAT-exempt transaction could trigger VAT liability. A recent ECJ decision will set standards for these situations.
Before purchasing a real property it is obvious that the purchaser examines whether the seller is the registered owner of the property and whether the title deed lists any encumbrances relating to the property. If, however, the investigation stops at this point and does not cover the transaction on the basis of which the seller acquired the property, the purchaser may face some unpleasant surprises.
The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.
