Regime Rate
9%
Under the 9% Corporate Tax
Standard Top Rate
15%
without this regime
Duration
Unlimited
No expiry — permanent regime
Target Profile
Flat Rate
Hungary
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under 9% Corporate Tax
€13 500
Standard Rate
€15 750
Annual Saving
+€2 250
Eligibility Requirements
Who qualifies?
- All companies
How the Regime Works
Full details
9% flat CIT — lowest in EU. No surtax on undistributed profits. Development tax credit: 50–80% of qualifying capex deductible. Small-business rate: KIVA (8% on wage base + dividends) for revenue <3B HUF.
Regime vs Standard Rates in Hungary
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 15% | 9% | -6.0pp |
Frequently Asked Questions
What is the 9% Corporate Tax in Hungary?
The EU's Lowest Corporate Income Tax Rate is a special tax regime in Hungary that provides 9% flat rate to qualifying individuals or entities. 9% flat CIT — lowest in EU. No surtax on undistributed profits. Development tax credit: 50–80% of qualifying capex deductible. Small-business rate: KIVA (8% on wage base + dividends) for revenue <3B HUF. Legal basis: Corporate Tax Act 1996 LXXXI.
Who is eligible for the 9% Corporate Tax?
Eligibility for the 9% Corporate Tax is limited to: All companies. Applicants typically must not have been Hungary tax residents during a specified prior period. Always verify current conditions at the source: Corporate Tax Act 1996 LXXXI.
How much tax do you pay under the 9% Corporate Tax?
Under the 9% Corporate Tax, you pay 9% flat rate on qualifying income — significantly lower than Hungary's standard top rate of 15%. On €150,000 gross, you save thousands of euros per year.
How long does the 9% Corporate Tax last?
The 9% Corporate Tax is a permanent regime with no set expiry — it applies for as long as you continue to meet the eligibility criteria.
How do I apply for the 9% Corporate Tax?
Application procedures for the 9% Corporate Tax are set out in Corporate Tax Act 1996 LXXXI. You typically need to file a formal application with Hungary's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.