Hungary

Tax residency in Hungary is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. Controlled Foreign Corporation (CFC) rules are in force. Residents who own or control foreign entities may face attribution of that entity's undistributed profits under local anti-avoidance provisions.

9% CIT — lowest in EU. Flat 15% personal income tax. R&D IP box: 4.5% effective rate. Guest worker (digital nomad) permit. White Card for investors. High VAT (27%).

The standard corporate income tax rate is 9%. The administrative process is considered straightforward, with minimal bureaucratic friction.

Account opening in Hungary can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet infrastructure is excellent, with widespread fibre broadband and reliable mobile connectivity across urban and suburban areas.

Hungary is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Hungary ranks highest for High Net Worth Individual and Freelancer. It offers an excellent proposition for high net worth individual (score: 80/100). It offers a strong proposition for freelancer (score: 77/100).