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Updated : 02/10/2014

Income taxes abroad – Hungary

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Common rights across EU countries


* Information not yet provided by national authorities

Which income will be taxed in Hungary?

  • Live in Hungary? You must pay tax on your worldwide income there.
    Criteria are: family place of residence, property ownership and whether you spend over 183 days per year in the country.

    You must register as a Hungarian taxpayer and request a tax identification number, after which your tax authority will issue you a tax card. Your tax authority is the one responsible for your permanent or temporary place of residence, or the location where you usually stay.

  • Lived in Hungary but less than 183 days in the tax year? You are not considered as a tax resident. You pay tax only on the income you earned in Hungary.

  • Income from other EU countries? Check you never pay tax twice on the same income.

How much will you pay?

Individuals pay a flat rate of 16%. Two types of income are taken into account:

1. Income to be consolidated: income from activities other than self-employment, income from self-employment and other income to be consolidated.

2. Income taxed separately: e.g. in-kind benefits, capital gains, income from private businesses and income from rental properties.

Take into account any:

  • tax allowances (available to all taxpayers, but the amount depends on your personal situation)
  • deductions you are entitled to for certain types of expenditure.

Deductible expenses include:

  • some forms of state support for raising minors
  • scholarships paid by non-residents to students studying in a foreign educational institution or researchers working abroad
  • some forms of support related to the purchase of real estate
  • services of insurance companies.

When and how do you pay?

Your employer deducts income tax and social contributions from your wages, daily allowances or other remuneration.

You need to complete a tax return only if you earn income from sources other than your employer or if you work for two or more employers simultaneously.

Tax returns are due by 20 May of the year following the tax year.

How to appeal / complain

If you disagree with your tax assessment, you can appeal to the Tax and Financial Control Administration.

Read your tax assessment letter carefully to find out exactly which department you should send your appeal to and which procedures you need to follow.

Links

Hungarian government - income tax info magyar

Guide to taxation in Hungary

Check also what your EU rights are.


I'm self-employed Choose country

Choose country

Common rights across EU countries


* Information not yet provided by national authorities

Which income will be taxed in Hungary?

  • Live in Hungary? You must pay tax on your worldwide income there.
    Criteria are: family place of residence, property ownership and whether you spend over 183 days per year in the country.

    You must register as a Hungarian taxpayer and request a tax identification number, after which your tax authority will issue you a tax card. Your tax authority is the one responsible for your permanent or temporary place of residence, or the location where you usually stay.

  • Lived in Hungary but less than 183 days in the tax year? You are not considered as a tax resident. You pay tax only on the income you earned in Hungary.

  • Income from other EU countries? Check you never pay tax twice on the same income.

How much will you pay?

Individuals pay a flat rate of 16%. The authorities distinguish between 2 types of income:

1. Income to be consolidated: income from activities other than self-employment, income from self-employment and other income to be consolidated.

2. Income taxed separately: e.g. in-kind benefits, capital gains, income from private businesses and income from rental properties.

As a rule, income from self-employment activities is calculated as the difference between your total revenues and total costs. You may also choose to apply a flat 10% cost rate, rather than documenting your actual costs incurred.

Take into account any:

  • tax allowances (available to all taxpayers, but the amount depends on your personal situation)
  • deductions you are entitled to for certain types of expenditure.

Deductible expenses include:

  • some forms of government support for raising minors
  • scholarships paid by non-residents to students studying in a foreign educational institution or researchers working abroad
  • some forms of support related to the purchase of property
  • services from insurance companies.

When and how do you pay?

Depending on your professional activity, you must make an advance income-tax payment each month or each quarter.

You must also file your annual tax return by 25 February in the year following the tax year.

How to appeal / complain

If you disagree with your tax assessment, you can appeal to the Tax and Financial Control Administration. .

Read your tax assessment letter carefully to find out exactly which department you should send your appeal to and which procedures you need to follow.

Links

Hungarian government - income tax info magyar

Guide to taxation in Hungary

Tax laws - EU and individual countries

Check also what your EU rights are.


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