Personal Tax in Hungary

Overview by
Tax Base For Residents and Non-Residents
Individuals in Hungary are subject to a variety of taxes, including the personal income tax, social security contributions, real estate taxes, and inheritance and gift taxes. Residents are subject to tax on their worldwide income, and non-resident individuals are subject to personal income tax only on their Hungarian-source income (including income from employment, business activities or real-property transactions in Hungary).

Tax Rate

A flat rate is effective for income tax 16%
Solidarity tax. This tax must be paid on annual income in excess of 7,446,000 HUF in 2007, which means that the total tax burden is 40% above this amount. 4%
Benefits in kind that are not tax-exempt are taxed separately 54%
On dividends on shares purchased on the stock exchange 10%
On dividends received by individuals. 25% or 35%
Healthcare contribution applies on income withdrawn from a business, dividends, income from securities lending, capital gains and income exceeding HUF 1m from renting out real property. 14%
Allowable Deductions and Tax Credit
Tax deductions are allowed as school fees, interests paid annually for the purchase of a house, and sums paid to charity sales.
Special Expatriate Tax Regime
Yes. It concerns especially health insurance and complementary retirement pension contributions. The requirements to obtain a residence permit depend on whether the applicant is a citizen of a country within or outside the European Economic Area (EEA).
Capital Tax Rate
In principle, gains from the sale of immovable property or other rights with a pecuniary value are subject to tax at a rate of 25%. Tax exemptions exist for gains derived from the disposal of immovable property used to finance the purchase of a new home and where the property has been held for at least 15 years. Income from the rental of real property is taxed at a flat 25% rate (that is, it is not combined with the taxable base).

Any Comments About This Content? Report It to Us.

Read more See less

No content has been posted to this folder yet.
Be the first to feature your expertise related to Personal Tax in Hungary!

  • Post any content you may have that features your expertise, such as a text article with business tips, presentation, market report, etc
  • By sharing your knowledge you gain more visibility for your profile not only on but across the web

Post your content now by simply clicking on the button below.

Check these folders already populated with content posted by other users:

Click here to find out more about key benefits and instructions for contributing to the site.


Post any content you may have that features your expertise and offers valuable information to the international trade community.

The more informative content you post the more visible your will be, as your valuable content will link directly to your profile.

Check these sample pages for illustration: