BRIEFLY ABOUT EVERYTHING WORTH KNOWING
BEFORE YOU START SHORT-TERM RENTAL
WOULD YOU LIKE TO RENT OUT YOUR APARTMENT IN HUNGARY REGARDLESS OF ITS LOCATION IN THE SHORT-TERM? BROWSE THROUGH THIS GUIDE, AND BY THE END, YOU WILL KNOW WHAT TO DO, WHERE TO GO, AND HOW YOU CAN GET THINGS DONE IN ORDER TO RECEIVE GUESTS IN YOUR PROPERTY. PRIVATE ACCOMMODATION GUIDE.
Important:
Firstly, we have gathered all the generally valid information about the inevitable initial steps of accommodation qualification which are worth knowing in order to create a private accommodation, and which you need to know before starting the area-specific private rented property licensing process. These steps must be followed in any case. The additional licencing process according to the specific local regulations only begins later, and we will detail in separate articles the municipal regulations and rules of procedure regarding each district/town.
A BRIEF REMINDER OF OUR FORMER TEXT:
In case of private accommodations, it is important to note that the maximum number of utilised rooms is eight, and the maximum number of beds is sixteen.
Short-term rental means that the guest books the given accommodation for a period not exceeding 90 days within a year. If their stay exceeds 90 days within a year, the transaction is considered a real estate rental and is classified differently.
Private accommodations can be operated by private individuals with tax number or by sole proprietors.
If you would like to read more about taxation, click here.
LET’S GO THROUGH THE STEPS THAT YOU ALWAYS NEED TO TAKE
Let’s see what the most important private property requirements are.
Client Gate registration
If you don’t have a Client Gate account yet, start here. You can get many things done though the Client Gate, and there are things that you can only do through the Client Gate. It is absolutely safe, and using Client Gate, administrative tasks can be completed faster, easier, and without being physically present.
You can find the Client Gate registration/log-in here.
Applying for a tax number
When it comes to property tax in Hungary, it should be noted that in case of private individuals with accommodation to rent, the activity can be performed only with a tax number for other short-stay accommodation (the correct classifications: NACE (TEÁOR): 5520 Holiday and other temporary accommodation services (within NACE number 55, accommodation services, you have to choose the number to which the real estate corresponds – e.g.: 552014 Private accommodation services). It is important to know that tax number is not the same as tax identification code.
The tax number can be applied for at the territorially competent NAV (National Tax and Customs Administration) customer service in person or through an authorised representative or via the online form filling application.
You can apply for a tax number here.
In case of short-term apartment rentals, it is mandatory to apply for a tax number, as
this activity cannot be carried out without a tax number.
Important:
You should apply for a community tax number as well, which is needed for services (arranging guest services) provided by various online platforms (e.g. Airbnb, Booking.com, or other similar systems).
We have covered taxation in detail in a separate article, which you can access here.
NTAK registration
Based on the effective legislation, you must register every domestic accommodation at the National Tourism Data Supply Centre, which you can do via KAÜ (Central Client Authentication Agent) after logging in with your Client Gate account.
But what is NTAK?
This digital platform was created in 2019 with the aim of making the traffic statistics of all the country’s accommodations visible in real time and anonymously. Reports, analyses, and statements are prepared from the data received online, which can also be viewed by the accommodation providers in their own NTAK account.
From the day following registration, data must be provided daily via the accommodation management software, but fortunately, the system automatically forwards the data to NTAK.
During the NTAK registration, you must record the primary data of the service provider, the data of the service locations, and finally, the sector (in this case: accommodation) related data available at the service locations:
- you must first register the service provider’s primary data and the service locations belonging to the service provider,
- then you must record the sector related data of the service locations.
You will receive a certificate of registration, which you will need to report the accommodation. Start the registration process here.
If you get stuck, you can find all-encompassing additional information, aids, and guides on the NTAK website.
Vendégem software
During NTAK registration, you can request the so-called Vendégem software (web application) free of charge via the NTAK interface, and the software will help you manage the entire administration of the accommodation and the daily data provision easily and quickly. If you have more than one accommodation, you must request the software for each accommodation separately. This can also be done during the NTAK registration. If all conditions are met, the system generates a certificate for you, which is automatically sent by e-mail
For the first time, you can only enter Vendégem software using your Client Gate ID.
You can access the software here, and you can download the mobile app for scanning documents from Google Play or the App Store.
VIZA
What does VIZA mean?
VIZA (Closed Guest Information Database system) is an IT system protected by multiple, asymmetric encryption, where the personal data of all guests staying at Hungarian accommodations specified by law are stored encrypted.
Why is it important?
The NTAK system forwards the guests’ data to VIZA. VIZA keeps the data submitted to it for a maximum of two years. The system is operated by the hosting provider (MTÜ [Hungarian Tourism Agency]). Neither the hosting provider nor the encryption key provider can access the data. Only the police may carry out a targeted search in the data in cases defined by law to carry out their crime prevention and law enforcement tasks.
Qualifying a private accommodation
The first and most important fact when obtaining a licence for private housing is that based on legal regulation, accommodation service activities can only be carried out in accommodations with valid qualification. This can only be issued if the accommodation meets the requirements for the specific type of accommodation published on the electronic interface of the accommodation qualifying organisation.
Before you begin, make a thorough examination exactly what requirements a private accommodation must meet in order to successfully obtain an NTAK accommodation qualification:
- you can find the qualification criteria here.
- and the description of the procedure in force can be found here.
The aim of the system is to provide reliable information on the quality of each accommodation in a 1-to-5-star rating system. The process is free of charge and exempt from duty (for the first time; however, the process must be repeated every 3 years, which will no longer be free).
The mandatory qualification must be completed before making a report to the competent notary.
THINGS YOU SHOULD DO
Private Property Qualification
Mandatory registration → Self-evaluation → On-the-spot inspection → Evaluation
1. In this case too, you must register first. To complete the registration, you must register the accommodation in NTAK, and it is advisable to start the registration in NTAK, under the ‘Accommodation qualification’ menu item, or you can also do it via the Accommodation Qualification website. You will receive a confirmation of the successful completion of the registration by e-mail and system message within 3 working days (in practice, this usually takes just a few minutes). For a successful registration, you have to fill in everything correctly.
2. In the next step, you have to carry out a self-evaluation.
YOU SHOULD ONLY BEGIN THE SELF-EVALUATION ONCE YOU HAVE COMPLETED THE PREPARATIONS IN YOUR REAL ESTATE. BECAUSE IF YOU SUBMIT THE SELF-EVALUATION, THE OFFICIALS WILL GO TO YOUR PLACE WITHIN 15 DAYS, AND THEY RIGOROUSLY CARRY OUT THEIR EVALUATION. AND IF YOUR PLACE DO NOT MEET THE MINIMUM REQUIREMENTS, YOU WILL NOT BE QUALIFIED, I.E. YOU WILL NOT GET A LICENCE. Although in case of failure, you can request an additional on-the-spot inspection, the officials will examine every nook and cranny during their second visit, so it is much better to be well-prepared for the first inspection.
After registration, you must start the process clicking on the ‘online self-evaluation’ menu item. You will then be given access to the self-evaluation interface. When you are done, you will see the category you have reached according to the criteria. By completing the self-evaluation, you indicate that you are ready for the on-the-spot inspection.
Please note that you must complete the self-evaluation within 45 working days of receiving the system message about the registration.
3. We’re making progress. The next step in the process is the on-the-spot-inspection. Its purpose, by definition, is to verify the information in the submitted self-evaluation and to fully examine its veracity, or to ask for additional information (additional on-the-spot inspection) if necessary.
When does it take place? You don’t have to wait long, it will take place within 15 working days after submitting the self-evaluation, and you will be notified of the date by e-mail and system message at least 5 working days before. If the date is not suitable, you can only request cancellation in writing, in a letter sent to the e-mail address maganszallashely@szallashelyminosites.hu, accompanied by thorough justification, strictly once. We suggest that you should not request cancellation. If you cannot be present during the on-the-spot inspection, you can add registered contact persons who can represent you during the inspection on the accommodation rating website.
Who carries it out? The inspection is carried out by two independent expert members of the Evaluation Committee, with the assistance of the owner or the operator of the private accommodation, or with the assistance of the person designated by them as the contact person on the electronic interface. You are obliged to let the inspectors in and provide access to the documents (floor plan, room list, house rules, etc.), which must be on site. The inspectors may (and will) take photos.
What do they check? – The existence of the listed documents. The fulfilment of the criteria for the private property qualification is checked individually, i.e. item by item, based on the criteria system. In case of all criteria, with the exceptions specified in the transitional provisions, 100% compliance is mandatory (the given product or service applies to all rooms, residential units, etc.).
In the table of the previously linked criteria system, ‘M’ denotes those products and services that are mandatory requirements of the given category. In all categories, the so-called minimum criteria (‘M’) must be met, and they cannot be replaced by the minimum requirements of a lower category. A record of the inspection is drawn up, and once again the online interface is used for drawing up the record.
You should pay particular attention to the overall picture: order, cleanliness, and making a good impression. These are essential. (Inspectors are particularly sensitive to defects such as: discoloured grout, limescale on the surfaces, worn bed linen, etc.). The point is not to be complacent, otherwise you will fail the check, and the new procedure will cost a lot of time and money.
When is it considered successful? For a successful qualification, two aspects must be met:
- the minimum number of criteria (‘M’) in each category,
- and the minimum score must also be achieved.
Please note that if everything is right in your apartment, but the apartment building does not look very nice, the inspectors will detract a star from your rating.
If something is still not right, you should know:
- If the accommodation is not suitable for receiving guests at the time of the on-the-spot inspection, an additional on-the-spot inspection will be ordered.
- The owner, the operator, or the person acting on their behalf may comment on the findings of the inspection report online through the dedicated user account of the private accommodation until midnight on the day of the on-the-spot inspection.
You may give your opinion, but practice shows that it does not help much, in general, it does not help you at all.
Other information:
- On-the-spot inspections cannot be carried out in private accommodations where people live habitually.
- On-the-spot inspections are not conducted in the order in which the self-evaluations are received.
Evaluation
☺Congratulations, your accommodation has met the requirements. In such cases, the Qualification Committee makes a proposal to classify the private accommodation in a qualification grade corresponding to the self-evaluation, which is decided on by the Evaluation Committee within no more than 15 working days following the on-the-spot inspection.
☹ If your accommodation has not met the requirements, the Qualification Committee will propose a qualification grade according to the grade actually achieved as a result of the on-the-spot inspection.
☹ If it is necessary to fulfil additional criteria in order to achieve the qualification grade established during the on-the-spot inspection and recommended by the Qualification Committee, the accommodation qualifying organisation, in addition to warning of the legal consequences of failure, by imposing an obligation to make up the deficiencies or to submit the accommodation to an additional inspection, will draw your attention on the spot in the inspection record to make up the deficiencies within 90 working days. If you have remedied the failure, they will carry out the additional inspection and again propose to the Evaluation Committee to accept the qualification corresponding to the qualification grade they have established. If you still do not meet the requirements, or if you did not make up for what was required, a recommendation will be made to accept a lower category qualification or to reject the qualification.
YOU HAVE TAKEN CARE OF EVERYTHING. WHAT’S NEXT?
1. You will be notified of the result of the qualification by e-mail and by a system message sent to the online interface of the accommodation qualification system, in which you will see the category achieved.
2. The following documents certifying the results of the qualification are sent:
- a certificate of the qualification, which proves to the notary that the accommodation has a qualification in accordance with the applicable legislation, and based on this, there is no obstacle to the registration (you can download this online);
- a certificate which certifies for the accommodation into which category the accommodation was classified during the qualification procedure as well as the validity period of the qualifications (it will be sent by post within 30 working days);
- a vignette or sign indicating the category granted during the qualification procedure in a recognisable way for the guests (it will be sent by post within 30 working days).
It must be placed in a clearly visible place at the entrance (on the fence) or failing that, at the entrance of the building, or if the private accommodation is located in a block of flats/residential complex, at the front door of the apartment or in its immediate vicinity.
It is worth mentioning that in case of private accommodations, a plastic sign certifying the results of the successful qualification can be ordered upon request. You can send your request for a sign by e-mail.
Accommodation qualification contact ugyfelszolgalat@szallashelyminosites.hu
Remember:
In the course of providing private accommodation services, the accommodation must continuously meet the requirements established at the time of qualification, and inspections may occur. After the first qualification, you must request an inspection and evaluation from the accommodation qualifying organisation every three year.
WHAT DOCUMENTS ARE NEEDED DURING THE PROCEDURE?
1. Floor plan. A technical floor plan is best, but if you do not have one, a self-made scaled(!) floor plan is also suitable. For each room, you must indicate the square metre value and the number of guests you plan to host in the given room.
2. An authentic property sheet showing the registered owner. If a new owner has only provisionally been registered, the sale and purchase agreement and a copy of the transfer of possession protocol must also be attached.
3. Declaration of consent as necessary:
- If the accommodation is jointly owned, a document certifying the consent of the co-owners.
- In case of usufruct, a document certifying the consent of the usufructuary.
- A document confirming the right to use the accommodation (leasing, etc.) (with the exception of the property sheet) if the owner of the real estate and the operator of the accommodation are not the same.
IT’S TIME TO VISIT THE COMPETENT NOTARY
After obtaining the private accommodation qualification, you must report the activity to the competent notary. The certificate of accommodation qualification, which you already have, is a mandatory attachment to the report of the private accommodation service activity. The notary enters the details of the accommodation service provider in accordance with the qualification grade established by the qualifying organisation, registers the accommodation service provider, and issues a document certifying the registration.
As described at the beginning of our guide, the exact process, the criteria, the reporting and authorisation process in accordance with each municipality’s rules will be dealt with separately. We have made it this far, that’s half the battle.
REMEMBER:
ACCOMMODATION SERVICE ACTIVITIES CAN ONLY BE CARRIED OUT IN THE POSSESSION OF A CERTIFICATE ISSUED BY THE NOTARY, AN ACCOMMODATION QUALIFICATION, AND AN NTAK REGISTRATION.
ALL TASKS ARE COMPLETED, YOU ARE READY, YOU HAVE SECURED ALL PERMISSION FOR PRIVATE PROPERTY – WHAT TO DO NEXT?
Do not worry, we will help you with that too – we will review separately the essential knowledge related to taxation and invoicing, and we will also explain what other requirements you have to meet after successfully getting an accommodation qualification during the operation of the private accommodation. I refer, for example, to the steps of accommodation management, such as data provision, royalty obligations to Artisjus (Hungarian Copyright Office Association), processing of personal data, exploiting the opportunities of different payment methods… The list is endless. ☺
