🇭🇺 Hungary
Strategic Central European hub with rich culture, affordable living, and thriving opportunities for families, entrepreneurs, and digital nomads.
Hungary Citizenship and Naturalization
Grade:
AGlobal Rank: 19
Visa-free Access
157 out of 195 countries
Access to Major Destinations
- European Union
- United Kingdom
- Canada
- United States
- China
- Russia
- Japan
| Category | Details |
|---|---|
Citizenship by Descent |
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Naturalizations |
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Spouse Naturalization |
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Birthright Citizenship |
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Economic Citizenship (Investment) |
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Other Provisions |
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Citizenship by Exception |
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Taxation Overview
Personal Tax Overview: Hungary 🇭🇺
Key information about personal taxation in Hungary
Tax Residency
Normal rule: 183 days
Special rule: No information
Special Tax Regime
No information
Dividend Tax
15%
Dividends received by individuals are subject to personal income tax at 15%, with exemptions if distributed from profits already taxed at the corporate level.
Capital Gains Tax
15%
Capital gains earned by individuals are taxed at a flat rate of 15% under the personal income tax system.
Property Rental Income
15%
Rental income earned by individuals is included in the consolidated tax base and taxed at the standard personal income tax rate of 15%. Deductions for allowable expenses may apply when calculating taxable income.
Property Tax
Yes
The general property tax rate ranges from 0.1% to 2.5% of the property’s assessed value, depending on the municipality and type of property.
Inheritance Tax
Yes
Inheritance by close relatives (spouse, children, parents, etc.) is fully exempt from inheritance tax, while transfers to others may be subject to tax.
Wealth Tax
No
Hungary does not have a wealth tax.
VAT
27%
Hungary levies a standard VAT rate of 27%, the highest in the EU. Reduced rates of 18% (e.g., basic foodstuffs, certain cultural services, accommodation) and 5% (e.g., medicines, books, some food items, internet access, district heating) apply. VAT is a major revenue source and applies broadly to goods and services supplied domestically, imports, and intra-EU acquisitions.
CFC Laws
Yes
Hungary applies CFC rules to individuals where income from a low-taxed foreign entity controlled by a Hungarian resident may be attributed and taxed in Hungary.
