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Who is liable to pay Hungarian Income Tax?

Hungarian residents are liable to income tax on their income while non-residents are taxed on income earned from Hungarian sources.

Who is a Tax Resident of Hungary?

An individual is considered resident in Hungary if he/she is a citizen of Hungary or has a registered address in the country or exercise their right to free movement for at least 183 days in Hungary. Individuals with settled statuses, those with permanent homes solely in Hungary and those with their centres of vital interest within Hungary are also considered to be tax residents.

What is the tax year end?

31st December

When are tax returns due?

20 May though an extension could be granted up to 20 November in specific cases.

Is there a personal tax allowance?

There are no allowances on personal income taxes in Hungary, the entire earned income is treated as the tax base.

What are the tax rates?

Hungary has a flat tax rate of 15 percent.

What are the social security rates?

Employees are required to contribute 18.5% of their income though expatriates are not subject to social security payments if they are on assignment in Hungary, and their assignment does not exceed 2 years.

Can I be self-employed, or must I become an employee to work in Hungary?

You can be self-employed in Hungary. Contact us for more details.