In general, real estate transfers are subject to a 10% transfer tax levied on the transfer price or the market value of the property. The transfer tax base also includes the VAT amount. The transferee (the buyer) pays the tax.

A new plant, Mercedes's first since it opened a Brazilian facility in 1999, will be in Kecskemet, Hungary, about 80 kilometers (50 miles) southeast of Budapest.

In March 2009, consumer prices increased by 0.5 pct compared to the previous month and rose by 2.9 pct compared to March 2008.

According to the forecast of GKI Economic Research Co. prepared in co-operation with Erste Bank, the global economic crisis pushed the Hungarian economy onto a new development path. External imbalances are improving fast, but GDP will contract by 4-5 pct. Real earnings will decrease by 2-3 pct, purchased consumption by 5 pct.

BRUSSELS, May 20 (Reuters) - Parent banks of the six largest foreign banks operating in Hungary pledged on Wednesday to support local subsidiaries to help them weather the financial crisis, the European Union's executive Commission said.

At its meeting on 25 May 2009, the Monetary Council reviewed the latest economic and financial developments and voted to leave the central bank base rate unchanged at 9.5 pct.