Hungary Tax Guide
Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.
Best for
- Foreign income exempt
Territorial system — overseas income generally outside the local tax net.
- Corporate-friendly
9% corporate tax — competitive for founders and holding structures.
- Digital-nomad-friendly
Combination of foreign-income treatment and residency rules works for nomads.
Personal Income Tax
Tax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
15% flat rate on capital gains
Wealth & Inheritance
Practical Notes
Flat tax system. Low personal rate. EU member with access to single market.
Business & Corporate Tax
Corporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- 9% corporate rate
- Regional incentives
- QDMTT for large MNEs
OECD Pillar Two (15% global minimum tax)
EU Directive transposed. QDMTT, IIR, UTPR live. The 9% headline corporate rate remains; Pillar Two only tops up in-scope MNEs.
See full implementation trackerTax Treaty Network
US-Hungary treaty was terminated by the US in 2024 over treaty-shopping concerns. Re-negotiation has not concluded. This is a major change for US-parented Hungarian holdings.
See full treaty matrixData Sources
Last verified: June 2026. Always check official sources before making a decision.
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
US citizen moving to Hungary? Read this first.
Hungary uses a territorial system for foreign income. For US citizens this often combines well with FEIE.
- •Foreign-source income may be exempt or only taxed on remittance in Hungary, but the US still taxes US citizens worldwide. FEIE (~$130k earned income) plus FTC on any Hungary tax paid is the standard combination.
- •Self-employment tax (15.3%) is owed in full — Hungary has no totalization agreement with the US.
- •Carefully document whether income is "Hungary-source" or foreign-source. The classification drives both Hungary and US tax outcomes; getting it wrong is the #1 audit risk in this category.
- •Residency requires 183 days. Special regimes may further reduce Hungary tax — check the country page for current options.
Need someone to actually plan Hungary for you?
TaxAtlas covers the rates and rules. For the personal side — exit planning, residency strategy, business structure, or filings — request a response and we'll point you to relevant research or a specialist who handles Hungary cases.
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