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21st January, 2020

Illegal accommodations discovered in Budapest

Dozens of illegally operating commercial accommodations were discovered by website 24 in the Fifth, Sixth and Eighth Districts of Budapest. Such accommodations accepted reservations but were not found in the districts’ accommodation registries.

Non-registered accommodations do not pay taxes on their income or the 4% tourism tax required by law. This could result in tax losses of tens of millions of forints, according to 24.

Head of the Association of Hungarian Apartment Leasers Balázs Schumiczky estimated that about 20% of all Hungarian hotels may be unregistered, while another source put the percentage at 30% to 40% in Budapest.

The website reports that the Hungarian Tourism Agency is working on an agreement with the largest accommodation websites which would only allow accommodations that have registered with the districts to post advertisements.

Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).

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