Hungary’s new value-based property tax the Government plans to introduce as of 2010 will have three effective brackets, according to local news portal hirszerzo.hu.

According to the portal, there would be no tax on real estate worth less than HUF 2m. On the ones in the HUF 2-10m range the cabinet would levy a tax of 0.2%. The next bracket would be between HUF 10m and HUF 30bn with a 0.35% tax and the upper bracket would be for property worth more than HUF 30m with a tax of 0.5%.

Socialist Party (MSZP) MPs have discussed this proposal, but the general view is that Prime Minister Gordon Bajnai and Finance Minister Péter Oszkó will have a hard job if they want to hammer their motion through, as real estate tax would affect virtually everyone. The proposal, along with two more, may be put up for vote in Parliament in June.