Back to all countries
🇭🇺

Hungary Tax Guide

Europe
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
82/100
Very Tax Friendly
Business Tax Score
92/100
Extremely Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required for tax residency

Income Tax Rates

Top Marginal Rate
15%
Structure
Flat 15% on all income

Foreign Income Treatment

System
Territorial
Details
Foreign employment income exempt if tax paid elsewhere; territorial elements

Investment Income

Capital Gains
15%
Dividends
15%
Interest
15%

15% flat rate on capital gains


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax for close family

Practical Notes

Flat tax system. Low personal rate. EU member with access to single market.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
9%
Effective Rate Note
9% corporate tax - lowest in OECD; 15% QDMTT for large MNEs
Free Zone / Incentives
Various incentives for specific regions

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0%

VAT / GST

Rate
27%
Note
27% VAT (highest in EU)

Compliance & Substance

Substance Requirements
Moderate - EU requirements
Compliance Friction
Moderate - EU member

Notable Regimes

  • 9% corporate rate
  • Regional incentives
  • QDMTT for large MNEs

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Hungary?

Hungary has a top personal income tax rate of 15%. The tax structure is: Flat 15% on all income. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Hungary?

Hungary uses a territorial system for foreign income. Foreign employment income exempt if tax paid elsewhere; territorial elements

What are the residency requirements for Hungary?

Tax residency in Hungary generally requires 183 days of physical presence. 183 days required for tax residency. Always verify current rules with official sources.

Is there a wealth tax in Hungary?

No, Hungary does not have a wealth tax. No wealth tax

What is the corporate tax rate in Hungary?

The corporate tax rate in Hungary is 9%. 9% corporate tax - lowest in OECD; 15% QDMTT for large MNEs