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Publications Tax changes in Hungary in 2025 and other significant changes

Tax changes in Hungary in 2025 and other significant changes

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​​​Published on: 23.12.2024 / Reading time approx. 7 minutes

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In the Hungarian Gazette No. 119 published on 28. November 2024 and in other gazettes published recently, government decrees have been published which introduce changes regarding several taxes and duties. In the following, we summarize the most important changes regarding 2025 affecting our clients. 

1. Pers​onal income tax

1.1 Date of receip​​t of income

In case of services used, the day shall be deemed as date of performance on which the provider of the service incurs an obligation to pay tax at the date of performance according to the provisions of the VAT Act. If, however, the provider of the service is not the same as the supplier of the service, at the recipient, the date of payment of the invoice shall be the date on which the receipt about the service is available to him. 

1.2 Family ta​x allowance

From 1 July 2025, the family tax allowance will be increased to one and a half times its previous amount, and to twice its previous amount from 1 January 2026. Thus, for example, the tax base allowance for a minor child will no longer be HUF 66,670.- per month, but HUF 100,000.- from summer 2025 and HUF 133,340.- in 2026.

Tax base reduction


Available tax reduction


1.3 Flat-rate taxation of private individuals providing accommoda​​tion

Private individuals providing private accommodation may opt for a flat-rate taxation regarding their income for the whole tax year if they conduct such activities in no more than three properties owned or beneficially owned by them and classified as private accommodation according to the Trade Act. The annual amount of the flat-rate tax is increased to HUF 150,000.- per dwelling room in municipalities where the number of overnight stays exceeded 2 million in the second year prior to the respective year. The National Tax and Customs Authority publishes the list of municipalities on its website until 31 January each year, where the number of overnight stays exceeded 2 million in the second year preceding the respective year according to the data published by the Central Statistical Office. For municipalities remaining below the limit, the annual amount of the flat-rate tax remains HUF 38,400.-. 

1.4 Contribution of in​​tellectual properties

If an “originally” entitled private person makes a contribution of his/her intellectual property to a business company in form of a contribution in kind, no tax payment obligation will arise. 

1.5 Home re​novation with SZÉP-Card

In 2025, SZÉP-Card payments can be used also for housing renovation up to the annual limit, provided that the amount to be used cannot exceed 50 percent of the amount registered in the payment account on 1 January 2025 and the amount transferred to the account in 2025. 

1.6 “Active Hunga​​​rians” SZÉP-Card sub-account 

The “Active Hungarians” SZÉP-Card pocket appears as a new fringe benefit, to which employers may transfer HUF 10,000.- per month. Through this, the annual amount to be granted through the card will increase from HUF 450,000.- to HUF 570,000.-. The new pocket can be used to pay for services related to active lifestyle and sports. 

1.7 Housing ​​allowance

According to the new provisions, a company allowance granted for the rent of a flat or the repayment of a loan for housing up to a maximum of HUF 150,000.- per month for employees under 35 years of age is considered as a tax-free fringe benefit. 

2. Social contr​ibution tax

Benefi​​t for persons entering the labour market

In the future, the benefit can only be used after newly hired employees who have been insured according to the social security Act for a maximum of 92 days in the 365 days preceding the month in which the employment has started. Furthermore, instead of the two-year period, the base of the social contribution tax can be reduced by the amount of the minimum wage only for one year and by 50 % of the minimum wage for a further half a year, instead of one year. The modification shall be applied regarding legal relationships established from 1 January 2025. 

3. Corporate​ tax

3.1 Suppl​​ement of the tax avoidance provisions

There may be cases, on the basis of which the taxpayer recognises costs or expenses that, are recognised as expenses by both the taxpayer and also a foreign person because of the differences between the domestic and the foreign law. According to the modification of the law, the double deduction may be applied in the case if the revenue is also recognised at both companies. 

3.2 Sp​ort subsidies

Through the extension of the legal title, a corporate tax subsidy may be granted to national federations of the sports concerned to cover “the running costs of sporting properties”. In addition, certain detailed rules for spectacular team sports have been amended and modified. 

4. Global minim​um tax

4.1 N​​otification obligation

The minimum tax act determines a notification obligation for domestic companies affected by the global minimum tax in case of additional tax liability within 12 months of the starting date of the tax year beginning in 2024, in which the group of companies is described and the data listed in the act are indicated. 

All companies falling within the scope of the regulation must comply with the notification obligation, regardless of whether they are eligible for an exemption. A group member may submit the data provision and the returns regarding the additional tax on behalf of all domestic group members. The notification obligation must be performed electronically using the GLOBEA form or, if the company is acting on behalf of all domestic group members, using the GLOBEM form. 

Among others, the data of the final parent company (name, country of residence, tax number), as well as the details of the domestic group member(s) must be indicated. A declaration must be made as to which final parent company, or any other group member will file the global data provision and the return regarding the additional tax. 

4.2 Payme​nt of additional tax

The modification of the law imposes an obligation to file advance tax returns and pay advance tax regarding the local additional tax, which must be fulfilled by the Hungarian group members until 20. of the 11th month following the affected tax year.  

4.3 Pen​​alties

Contrary to the Act on the Rules of Taxation, no late payment penalty, tax penalty or default penalty have been imposed for non-compliance with the notification obligations if the group member has acted as it can be expected from a group member in the given situation. 

5. Retail ​​sales tax

Sales t​hrough a platform

The scope of taxable persons is extended to include non-resident or resident platform operators who provide a marketplace for retail sellers. In the future, the platform operator will be the taxable person in the case of retail activities carried out via a platform. 

In order to avoid double taxation, retailers can reduce their tax payment obligation by the tax on the revenue arising from their sales through the platform. If, however, the platform operator fails to meet its tax payment obligation, the retailer will be obliged to pay the tax.

6. Value ​Added Tax

6.1 Sales of new reside​​ntial properties

The applicability of a reduced VAT rate of 5% on the sale of new residential properties will be extended by 2 years so that this will remain in force until 31 December 2026. According to a transitional provision, the 5% VAT rate may be applied until 30 December 2030 in case of residential properties the building permit of which has become final until 31 December 2026 at the latest and the simple notification has been made by 30 September 2024. 

6.2 Assign​ment of the tax deduction right related to the import of goods.

The importer may assign his tax deduction right to the indirect customs representative – in case of the fulfilment of other conditions – if he is subject to a monthly return and “both” are qualified as reliable taxpayers according to the provision of the Act on the Rules of Taxation. If the importer has a permit as an import VAT self-assessment taxpayer according to the VAT Act, the importer’s indirect customs representative may continue to exercise the right to deduct input tax on the importation of the goods instead of the importer.  

7. Excise duty

Automatic inflation-linked tax increase will be introduced in case of various taxes and duties, such as: 
  • From 2025 on excise duties on fuels,
  • From 2026 on excise duties on tobacco products.
During the valorisation, the tax rate will be automatically adjusted by the amount of the change in the consumer price index published by the Central Statistical Office (KSH) for the month of July of the year before the respective tax year compared to the same period of the previous year. 

8. Registration tax​, vehicle tax

From 2025 onwards, the registration tax rate will be adjusted by the amount of the consumer price index published by the Central Statistical Office for the month of July of the year preceding the respective year valorised to the same period of the previous year. In 2024, the tax rates applicable for the following year will be published by the National Tax and Customs Administration on the website by 15 December 2024 and for the following years by 31 October of the year preceding the respective year. 

In case of vehicles with the environmental class markings 5P and 5N, the exemption from vehicle tax may be enforced until 30 December 2026, provided that the tax liability of the person being obliged to tax payment arose before 1 January 2025. 

9. Comp​any vehicle tax

After 2025, the monthly rate of the company vehicle tax for the current year is the monthly rate of the company vehicle tax for the year before the current year, rounded up or down by the change in the consumer price index for the month of July of the year before the current year published by the Central Statistical Office, compared to the same period of the previous year. 

10. Extr​a profit tax / special taxes

The special tax on airlines and the extra profit tax on pharmaceuticals and telecommunication companies will be abolished from 2025.

11. Rules of ta​xation

11.1 Pro​​vision of seat services

In case of notification of the use of a seat service, it is necessary for the seat service provider to be entered int the official register of seat service provides. It will not be sufficient to notify the intention to carry out such an activity. 

11.2 R​egistration of third-country employees

If a foreign employee determined in the Act on general rules for the entry and residence of third-country nationals does not have a tax identification number, the employer, in addition to the paying and reporting agent, may also apply to the National Tax and Customs Administration for the issuance of the tax identification number for a natural person. 

11.3 Bra​​nch of foreign companies

The Hungarian branch of foreign companies will be obliged to open a bank account. 

11.4 Data​​ reconciliation procedure

The tax authority may request clarification from the taxpayer in case of discrepancies found during the data provision. The taxpayer has 15 days from the request to clarify the issue and to reconcile the data. 

12. Acc​ounting Act

12.1 Obl​​igations to prepare simplified annual financial statements

In case of small and medium-sized companies, the thresholds for the preparation of simplified annual financial statements and consolidated annual financial statements and the thresholds for audit obligations will be increased: 

Thresholds for the choice of simplified annual financial statements: 
  • the value for the balance sheet total is HUF 2,000 million instead of HUF 1,200 million, 
  • the value regarding the annual net sales revenue will be changed from HUF 2,400 million to HUF 4,000 million. 

Thresholds for the obligation to prepare consolidated annual financial statements: 
  • the balance sheet total is changed from HUF 6,000 million to HUF 10,000 million.
  • the annual net sales revenue is changed from HUF 12,000 million to HUF 20,000 million. 
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12.2 Au​dit obligation

Among the conditions for the exemption from the audit obligation, the threshold for the net sales revenue is changed from HUF 300 million to HUF 600 million. 

12.3 S​​ustainability report

If the entrepreneur is obliged to prepare a sustainability report or a consolidated sustainability report, or prepares one on a voluntary basis, it must have it certified by an auditor being member of the Chamber of Auditors with a sustainability qualification.  

13. Minimum salar​​y level

According to the government decree submitted for social consultation, as of 1 January 2025, the minimum wage will be increased by 9% to gross HUF 290,800.-, the guaranteed minimum wage by 7 % to gross HUF 348,800.-.

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In case you have any questions or require assistance in relation to the above mentioned topics, we are happy to assist you with our advisory services.

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Graduate in Economics, M.A. (London), Tax Consultant

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