Share with your friends

Hungary - Other taxes and levies

Hungary - Other taxes and levies

Taxation of international executives


Related content


Social security tax

Are there social security/social insurance taxes1 in Hungary? If so, what are the rates for employers and employees?

Employer and employee

Type of insurance

Paid by employer

Paid by employee

Social security contributions



Social Tax






The CAP for the pension contribution was abolished as of 1 January 2013.

Individuals falling into the scope of the EU regulation and to bilateral social security totalization agreements or who are citizens of former socialist block countries/jurisdictions are subject to Hungarian social security but may apply for exemption in line with the applicable agreements.

Third-country/jurisdiction citizen expatriates are not subject to social security, if they are on assignment in Hungary, and their assignment does not exceed 2 years and none of the above agreements apply.

EEA country/jurisdiction and totalization agreement country/jurisdiction citizens who are assigned from a non-EEA or non-totalization agreement country/jurisdiction to Hungary can be exempt from Hungarian social security contributions if their assignment’s duration is no longer than 2 years and they can prove that in the country/jurisdiction from which they are assigned they are subject to statutory social insurance.

The rates for 2020 are the following.

  • Employer: 15.5 percent social tax.
  • Employee: 18.5 percent social security contribution.

Certain income items (which are not subject to social security) are subject to a social tax (generally 15.5 percent). The social tax is payable either by the employer or the employee.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Hungary?

Inheritance and gift taxes

Inheritance and gift tax2 is levied on individuals who acquire property by inheritance or gift, at rates depending on the closeness of the relationship between the deceased and the recipient, as well as on the type of property acquired. Foreign citizens inheriting Hungarian property may also be subject to the taxation.

The rate ranges between 0 percent and 80 percent.

Wealth tax

Local governments may levy wealth taxes in the area of their jurisdiction. Building tax is payable by the owner of the building at a maximum rate of HUF1,100 per square meter or 3.6 percent of the adjusted market value of the building. Property tax is payable by the owner of the land parcel at a maximum rate of HUF200 per square meter or 3 percent of the adjusted market value of the land parcel.

Real estate tax

Are there real estate taxes in Hungary?

Luxury tax


Sales/VAT tax

Are there sales and/or value-added taxes in Hungary?

Yes, there is VAT at a general rate of 27 percent, however circumstances of the sale should be considered.

Unemployment tax

Are there unemployment taxes in Hungary?

The employee is obliged to pay contributions to the unemployment fund as part of social security.

Other taxes

Are there additional taxes in Hungary that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Local taxes

Certain local taxes are payable by the owner of a building or land parcel. The right of the taxation is in the hand of the local governments. The maximum rate of the local communal tax is HUF17,000 per year for each building/land parcel.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?

Assets alone are not to be reported. Only the transactions or yields derived from them.

Foot notes

1. Hungarian Act LXXX of 1997 on Eligibility for Social Security Provisions and Private Pension and on Funding Such Services. Hungarian Act LXIV of 1998 on Health Care Charge.

2. Hungarian Act LXXXXIII of 1990 on Duties.

3. Hungarian Act C of 1990 on Local Taxes.

5. Hungarian Act C of 1990 on Local Taxes.


All information contained in this publication is summarized by KPMG Tanácsadó Kft., the Hungarian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on Act CXVII of 1995 on Personal Income Tax; Act CL of 2017 on Rules of Taxation; the Web site of the Hungarian Tax Authority; Act LII of 2018 on Social Tax; Act CXXII of 2019 on the Eligibility for Social Security Benefits and the Funding for These Services; Act XCIII of 1990 on Duties; Act C of 1990 on Local Taxes; Act CXXVII of 2007 on Value Added Tax; Act I of 2007 on the Admission and Residence of Persons with the Right of Free Movement and Residence; Act II of 2007 on the Admission and Right of Residence of Third-Country/Jurisdiction Nationals and the Website of the Consular Service Hungary.

© 2021 KPMG Hungary Ltd./ KPMG Advisory Ltd. / KPMG Legal Tóásó Law Firm / KPMG Global Services Hungary Ltd., a Hungarian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today