Hungary Flag

Hungary: Living There - Tax Issues

Country Rating  » Star Rating Icon

Last Updated: May 16, 2007

Living There

Residents are taxed based on normal progressive rates on their worldwide income with tax credits available.

INCOME TAX

TAXABLE INCOME , HUF (€*) TAX RATE
Up to 1,700,000 (€6,838) 18%
1,700,000 – 6,748,850 (€27,145) 36% on band over €6,838
Over 6,748,850 (€27,145) 40% on band over €27,145
* Exchange rate as of 22 May 2007: 1 EUR = 248.621 HUF
Source: Global Property Guide

TAX ALLOWANCE

TYPE OF TAX CREDIT TAX CREDIT, HUF (€)
Employment Credit 18%, up to a maximum of HUF108,000 (€434), if total annual taxable income does not exceed HUF1,500,000 (€6,033); for income between HUF1,500,000 and HUF2,100,000 (€7,868), the tax credit calculated should be reduced by 18%.
Family Credit HUF4,000 (€16) per child every month
Disability Credit Disabled persons are given a monthly credit equivalent to 5% of the minimum wage or HUF3,275 (€13) per month.
Education Allowance 30% of tuition fees for first degree of higher education up to a maximum of HUF60,000 (€241) per year.
* Total tax credit claimed may not exceed the tax payable. Tax credits are not refundable.
Source: Global Property Guide

There are many allowances available:

 

Your Comments

Be the first to comment!

Post a comment

Email address is kept strictly confidential
* Optional, but allows us to notify you when your comment has been posted.
Comments submitted using this form will be published.
Note that the editors cannot answer specific questions, e.g., about law or taxation.
These issues can be raised by posting publicly here, where often knowledgeable local readers are able to assist.



Subscribe to our Newsletter!

Enter your email address to sign up.