Hungary » Taxes

CIT	IIT	VAT	Property Tax	Transfer Tax

Corporate Income Tax

Companies incorporated in Hungary are subject to corporate income tax on their worldwide profits. Foreign companies carrying out taxable activities in Hungary are subject to corporate income tax on their net profits derived from Hungarian sources. Hungary has a split-rate corporate income tax system. The standard rate of income tax is 18%.

Individual Income Tax

Residents of Hungary are taxed on worldwide income. Expatriates are taxed on worldwide income if they reside in Hungary for at least 183 days in a tax year. Non-residents are taxed on income from Hungarian sources only. Under the Hungarian individual income tax system, taxable income is generally taxed at a progressive rate of 20% to 48% based on income brackets.

VAT

VAT is levied on the domestic sale on the importation of goods and services. VAT of 15% is levied on basic consumer goods, books, newspapers and transportation. A 20% rate applies to all other products and services.

Property Tax

This is a tax imposed by a local authority on land and buildings.

• Buildings - to an upper limit of HUF 900 per square meter per annum, or 1.5% of the market prices of the asset.
• Land - to an upper limit of HUF 200 per square meter per annum, or 1.5% of the market prices of the asset.

Transfer Tax

A 10% tax is imposed on the transfer of real estate. The tax is paid by the buyer.