Taxes in Hungary

Family place of residence, property ownership and whether you spend over 183 days per year in Hungary are the main criteria for taxation for foreigners. Tax returns are due by 20 May of the year following the tax year. Taxation in Hungary is levied by both federal and local governments.

All Tax payers must register for a tax identification number and TAX card with NAV tax authority.

Corporate income tax rate 9%
Branch tax rate 9%
Minimum tax Applied to 2% of adjusted gross profit
Capital gains tax rate 9%
Tax basis Worldwide income
Participation exemption Yes
Loss relief Carryforward: Indefinite, but limitations apply
Carryback: Generally not available
Double taxation relief Yes
Tax consolidation For VAT purposes
Transfer pricing rules Yes
Thin capitalization rules Yes (ratio 3:1)
Controlled foreign corp. rules Yes
Tax year Calendar year,
but different fiscal year may be elected
Advance payment of tax Monthly/quarterly
Return due date Last day of the fifth month
following of the end of the fiscal year
Withholding tax Dividends: 0%
Interest: 0%
Royalties: 0%
Branch remittance tax: 0%
Social security contributions 22% of gross wages for the employer
(20% from 2018)
Capital tax No
Building tax/land tax May apply at municipal level
Real estate transfer tax 4% up to a value of HUF 1bn (€3.3 million)
and 2% on the excess,
capped at HUF 200 million (€0.65 million)
Local business tax maximum 2% of net sales revenue
Innovation contribution 0.3%
Financial transaction tax 0.3% of transferred amount
VAT 27% (standard), 18%, 5%
Hungary quick tax facts for Individuals (2017), Source: Deloitte.[1]
Income tax rate 15%
Capital gains tax rate 15%
Tax basis Worldwide income
Double taxation relief Yes
Tax year Calendar year
Return due date 20 May
(Tax authority prepares it electronically
to everyone automatically)
Withholding tax Dividends: 15%
Interest: 15%
Royalties: 15%
Healthcare contribution 14% or 22% on some income
maximum annual HUF 450 000 (€1460)
Social security contributions 18.5% of gross wages for the employee
Net wealth tax No
Inheritance and gift tax 9% or 18%
Real estate tax May apply at municipal level
VAT 27% (standard), 18%, 5%

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