Hungary
Top Income Tax
15%
Marginal rate
Corporate Tax
9%
Standard rate
VAT / Sales Tax
27%
Standard rate
Capital Gains
15%
Standard rate
Overview
Hungary boasts the EU's lowest corporate tax rate at 9%, though its VAT at 27% is the highest. The flat 15% income tax is attractive. Budapest offers a vibrant cultural scene and growing tech ecosystem at very affordable prices.
Income Tax Brackets
| Income Range (HUF) | Tax Rate |
|---|---|
| 0+ | 15% |
Flat 15% rate. Family tax benefits available for families with children.
Corporate Tax
Standard Rate
9%
9% - lowest in the EU. Plus 2% local business tax on revenue.
VAT / Sales Tax
Standard Rate
27%
Reduced Rates
5%, 18%
27% - highest in the EU. 5% on basic food, medicine. 18% on some food, accommodation.
Capital Gains Tax
Standard Rate
15%
15% flat rate, same as income tax.
Social Security Contributions
Employee
18.5%
Employer
13%
Self-Employed
18.5%
Employee: 18.5% social contribution. Employer: 13% social tax.
Special Tax Regimes
KATA (Small Taxpayers Itemized Tax)
Fixed monthly tax for small entrepreneurs (being reformed). Simple flat-rate alternative.
Eligibility: Self-employed and sole proprietors under revenue threshold.
Digital Nomad Visa
White Card digital nomad visa. Must work for foreign company or be self-employed with foreign clients.
Pros & Cons
Pros
- Lowest corporate tax in EU (9%)
- Flat 15% income tax
- Low cost of living
- Digital nomad visa available
Cons
- Highest VAT in EU (27%)
- Complex local business taxes
- Political uncertainty
- Language barrier
Living Indicators
Cost of Living Index
Moderate
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Hungary is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Hungary government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.