​What You Need to Know About A Corporate Tenant
August 25th, 2014

What is the difference between renting your apartment to a corporation (or other entity) and to a natural person? There are of course numerous differences, but we would like to emphasize two important items that every lessor should keep in mind.

1. Billing

Since all companies, corporations or other entities  have to account  for all of their expenditures/costs, they can only rent apartments from owners, who may issue out bills  with appropriate format.The range of potential tenants  is significantly reduced if we fail to take this into account.

2. Companies are obliged  to pay taxes for the property owners

If  the lessee is a company is and the lessor is a natural person the company is obliged under the Hungarian law  to pay taxes on behalf of the owner. In practice, this means that the amount the tenant/lessee will transfer every month to the lessor will be reduced by the amount of the tax advance payment.The Tax Office is liable to give the owner a certificate  for the tax payment so that the owner can use  that certificate in the preparation of his  personal income tax return at the end of the year.