Living in Hungary: four residency options, 15% tax, and inheritance tax

In Hungary, the Personal Income Tax Act distinguishes four ways to be considered a resident: Hungarian citizenship, 183 days of residence in the calendar year for individuals exercising their right to free movement and residence, a long-term residence permit, or, for all other individuals, a permanent home, center of vital interests, or habitual residence. Residents are taxed on all their income, both Hungarian and foreign. The income tax rate is 15%. This page does not cover visas or local property taxes.

Four ways to become a resident

Article 3, point 2, of Law CXVII of 1995, in the version displayed by the official texts portal (Nemzeti Jogszabálytár, entry "2026.10.01."), defines a resident as:

1. the Hungarian citizen, unless he also possesses the nationality of another State and has neither a place of residence (lakóhely) nor a place of stay (tartózkodási hely) in Hungary within the meaning of the law on the register of personal data and addresses; ;
2. the person who exercises in Hungary their right to free movement and residence for more than three months for at least 183 days in the calendar year, with the day of entry and the day of exit each counting as a full day; ;
3. the person holding a right of long-term residence, or the stateless person, within the meaning of the law on the entry and residence of third-country nationals; ;
4. any other person whose permanent residence is located solely in Hungary; or, if they do not have a permanent residence or not solely in Hungary, whose center of vital interests is in Hungary; or, if this center cannot be determined, whose habitual residence is in Hungary.

The text defines the center of vital interests as the state to which a person is bound by the closest personal, family, and economic ties. Permanent domicile is the place where a person has settled permanently and actually resides. It does not change when they stay abroad temporarily, even for extended periods. The order of the fourth route (permanent domicile, center of vital interests, habitual residence) is that adopted by Article 4, paragraph 2 of the Franco-Hungarian Convention for determining dual residence, before nationality.

Resident or not: what is taxed

Article 2(4) of the same law stipulates that a resident's tax liability extends to all their income. Non-residents are only taxed on income from Hungarian sources, or income that a treaty or reciprocity agreement makes taxable in Hungary. The Hungarian Tax Administration (NAV) states that resident individuals are taxable on all their income, whether earned in Hungary or abroad.

Income tax: 15 %

According to the NAV guide updated in August 2026, the personal income tax rate is 15%. The same guide indicates a rate of 9% for self-employed individuals, without specifying the conditions: the page does not apply to any particular case. The annual tax return must be filed before May 20th of the following year, and any remaining tax due is payable by the same date. The tax authorities prepare a draft tax return for non-entrepreneurial individuals; this becomes final if the taxpayer accepts it or does not file another return.

Dividends, securities and foreign income

NAV cites the 15 % rate for dividends in two situations: those paid by Hungarian companies to non-residents in the absence of a tax treaty, and the 15 % tax on foreign-source dividends mentioned below. Gains on the sale of traded securities are taxed at 15 %. A social security levy of 13 % is added to dividends subject to this 15 % rate, as well as to foreign exchange gains and withdrawals of company assets, when the income exceeds 24 times the minimum wage for the fiscal year. NAV refers to the 2018 LII Act for details.

According to NAV, unless otherwise stipulated by an international convention or reciprocal agreement, the tax calculated on income included in the consolidated tax base is reduced by 90 % of the tax paid abroad, up to the limit of the Hungarian tax levied on that income. NAV treats foreign dividends separately: it specifies that the tax paid abroad can be deducted by 15 % upon presentation of supporting documentation, and that in the absence of a convention, at least 5 % must be paid in Hungary. The Franco-Hungarian convention is detailed on our dedicated page.

Rents: 15 % on 90 % of the revenues or on the actual result

For a rented property, NAV (January 2026 guide) sets the tax at 15% of the taxable base. The taxable base is either 90% of the revenue or the actual difference between revenue and expenses incurred and documented. Advance payments are due throughout the year. If the tenant is not a taxpayer or if the tax has not been withheld, the landlord pays the amounts no later than the 12th of the month following the relevant quarter.

Selling an asset: a schedule based on the year of acquisition

The tax on the sale of real estate and movable property is 15 %. For movable property, NAV does not consider as income sale proceeds that do not exceed HUF 600,000 in a given fiscal year. For real estate, the calculated amount is reduced according to the year of acquisition, based on the NAV table for January 2026:

The guide does not mention any exemptions for the main residence. The percentages in the table are shares of the calculated amount, not tax rates: the 15% % rate then applies.

Inheritance and gifts: 18 % or 9 %

The 1990 Inheritance Tax Act (Act XCIII), in the version displayed on the portal (reference "2026.10.01"), sets the general rate of inheritance and gift tax at 18 % of the net value (§ 12 (1)). For the acquisition of a dwelling free of charge, the rate is 9 % (§ 12 (2)). Ascendants and descendants in the direct line of the deceased (including adoptions) and the surviving spouse are exempt on their share of the inheritance (§ 16 (1) i). § 17 (1) p) also provides for an exemption for certain gifts; its precise scope is explained in the text.

Within its territorial scope, the law applies to all inheritances involving property located in Hungary (Section 2(1)). Real estate located abroad is excluded. For movable property located abroad, the law applies to heirs of Hungarian nationality or foreigners residing in Hungary, subject to the conditions it sets forth. The nationality or residence of the deceased is not a criterion in this paragraph. Section 2(2) applies the provisions on gift and transfer taxes to movable property, property rights, real estate located in Hungary, and shares in companies holding Hungarian real estate, unless otherwise stipulated by international agreement. The displayed text ends at Section 24(3).

Social security in 2026

CLEISS gives for 2026 a social contribution of 18.5 % of gross salary for the employee, a social tax of 13 % for the employer, and, for the self-employed, a social tax of 13 % and a contribution of 18.5 % on a minimum basis of 322,800 HUF.

An annual rent of 6,000,000 HUF: a numerical example (fictitious profile)

Situation. Marc, a fictitious profile, is a resident of Hungary. He rents out a Hungarian apartment and collects 6,000,000 HUF in rent per year (assumed amount).

Issue. He wants to estimate the tax on his rental income.

Strategy. He retains the base of 90 % of the revenues, then applies 15 %. The other option, the actual difference between revenues and justified expenses, assumes expenses that he has not quantified here.

Result. The tax base is HUF 5,400,000 (90% of HUF 6,000,000). The tax is HUF 810,000 (15% of HUF 5,400,000), representing 13.5% of the revenue. This calculation ignores advance payments, other income, and any social security contributions, which are not mentioned on the NAV page regarding rents.

For comparison, an inheritance of HUF 40,000,000 net worth, received by an heir outside the direct line, would give HUF 7,200,000 to 18 % and HUF 3,600,000 to 9 % if it relates to a dwelling.

What this page does not cover

It does not cover local property taxes, any potential wealth tax, savings and life insurance held in Hungary, residence permits, health insurance contributions for uninsured individuals, or the conditions for the 9 % rate applicable to self-employed individuals: these points should be verified with the Hungarian tax authorities. The definition of residence is taken from the text of the law. Local taxation is validated with a professional established in Hungary. Matters pertaining to France, such as the declaration of departure, accounts to be declared, and exit tax, are addressed in our pages on tax domicile.

What changes depending on your situation

• Your nationality and your registered address in Hungary.
• Your number of days of presence and your residence permit.
• The location of your home and your family and economic interests.
• The nature of your income: employment, dividends, rents, sales.
• The year of acquisition of your real estate and its intended use.

The rule depends on your situation. No results are guaranteed.