Regime Rate
15%
Under the Flat Income 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 Flat Income Tax
€22 500
Standard Rate
€15 750
Annual Saving
+€0
Eligibility Requirements
Who qualifies?
- All residents
How the Regime Works
Full details
Single flat 15% rate on all personal income — one of EU's lowest. No progressive brackets. Family tax credit (CSOK) reduces tax for parents: full exemption for mothers with 4+ children under SZJA.
Regime vs Standard Rates in Hungary
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 15% | 15% | — |
Frequently Asked Questions
What is the Flat Income Tax in Hungary?
The Flat 15% Personal Income Tax is a special tax regime in Hungary that provides 15% flat rate to qualifying individuals or entities. Single flat 15% rate on all personal income — one of EU's lowest. No progressive brackets. Family tax credit (CSOK) reduces tax for parents: full exemption for mothers with 4+ children under SZJA. Legal basis: Personal Income Tax Act (SZJA törvény).
Who is eligible for the Flat Income Tax?
Eligibility for the Flat Income Tax is limited to: All residents. Applicants typically must not have been Hungary tax residents during a specified prior period. Always verify current conditions at the source: Personal Income Tax Act (SZJA törvény).
How much tax do you pay under the Flat Income Tax?
Under the Flat Income Tax, you pay 15% 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 Flat Income Tax last?
The Flat Income 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 Flat Income Tax?
Application procedures for the Flat Income Tax are set out in Personal Income Tax Act (SZJA törvény). 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.