In Hungary you will pay taxes after the purchase of a property (Stamp duty). The stamp duty is 4 % of the purchase price stated in the contract.
These taxes have to be paid only once of course, a few months after the purchase of your property in Hungary Balaton. Our lawyer will inform you about it.
In Hungary profit by sale of property is taxed. New legislation since 1 January 2008 at this point. This means that when selling a, as a residence registered property, within 5 calendar years after purchasing, a percentage of 16% of the difference between purchase price and selling price must be paid, minus all maintenance and renovation costs and investments in the property. You should have bills to prove your renovations or repairs on the house in Hungary. It is important in the case of periodic maintenance, and renovation to ask for bills and receipts. You will have to pay the VAT directly about this. Incidentally, the taxable amount decreases with age: in sales after one year you pay the entire tax (16%) of 100% of the profit, after 2 years 90% of the profit (so you pay 90% over 16% of the profit), after 3 years 60% of the profit (so you pay 60% over 16% of the profit) and after 4 years 30% of the profits. The profit is tax-free after a period of 5 years.