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Expat tax in Hungary: 2024 guide | eBook

January 30, 2024

Employing expats in Hungary or posting Hungarian employees abroad results in new obligations for any employer. Our tax and labour law experts gathered all the important information related to cross-border employment and global mobility in Hungary, to provide you with an easy overview on conditions for tax residency, personal income tax and social security contributions or penalties for non-compliance.

Download our guide on expat tax in Hungary, or read more below

Overview of key facts related to expat tax in Hungary

Our local tax, payroll and labour law experts are here to help you – as an expat or an employer – to obtain essential expert advice, so that you can effectively address all the matters related to cross-border mobility in Hungary and other locations globally.

Tax residency

In Hungary, a tax resident is:

A person who is a citizen of Hungary (except dual citizens), as formal criteria

A citizen of the European Union who spends more than 183 days per calendar year in Hungary

A third-country citizen with permanent residence status, whose vital interest is in Hungary

Any natural person who has a permanent home (habitually residing in the country) or habitual stay in Hungary (where they stay for more than 3 months without the intention to leave)

Tax rate

Rate
15%

%

Tax period

Calendar year

Social security contributions

Rate for the employer
13%

%
Rate for the employee
18.5%

%

Tax return filing

The due date for filing falls on May 20 with the possibility of extension, however, the tax office needs to be notified beforehand. Application for justification may not be refused if the private individual has any income from abroad, and in this case penalty for the delay in filing may not be imposed until November 20.

Penalties related to expat tax in Hungary

Delayed filing of the tax return: The fine ranges from HUF 0 up to HUF 200,000 (private persons) or up to HUF 500,000 (legal entities)

Delayed payment of the due tax: prevailing central bank (MNB) base rate plus 5% from the value of overdue tax

Delayed or missing registrations at tax authorities: up to HUF 1,000,000, or up to HUF 500,000 if the employer registers the employee,  but erroneously, defectively or with false data content

Delayed or missing report on monthly salary or withholding tax from salary: up to HUF 500,000

Penalties related to social security

Delayed report on social security: up to HUF 500,000

Delayed payment of the social security contributions: prevailing central bank (MNB) base rate plus 5% divided by 365 for each day from the overdue payment

Delayed or missing registrations for the purposes of social security: up to HUF 1,000,000

Penalties related to health insurance

Delayed report on health insurance: up to HUF 1,000,000

Delayed or missing registrations for the purposes of health insurance: up to HUF 1,000,000

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