Taxes
Over the last few weeks, several announcements were made regarding taxes, regulations, and plans for Hungarian economy. For now, these are only proposals, currently debated in parliament. However, we thought it would be useful to see the proposed tax changes most relevant to small businesses in Hungary. Read on to learn about them, and watch this space for the final regulations.
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While corporate tax in Hungary is the lowest in the EU at just 9%, business owners should keep in mind another tax: the local business tax (or HIPA in Hungarian), which can be up to 2% on the net revenue. But how is the net revenue defined, and how is the tax base determined? Read on to find out.
The post Calculating the local business tax base in Hungary (HIPA) appeared first on Helpers Finance.
The social projection basis is a figure used for the calculation of various social benefits and allowances in Hungary. In 2026, it is HUF 28,500 monthly. For now, it is the same as the minimum old-age pension, but that will be increased to HUF 120,000 as of January 1, 2027. It does not affect payroll costs, but it might affect your employees if they are receiving any benefits from the state.
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Personal income tax is levied on all kinds of income a natural person earns. In Hungary, it is 15% regardless of how much someone earns, but various tax benefits are available based on age, marital status, disability, and other factors.
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Social security contribution is supposed to cover social services in Hungary including pensions, allowances, and public healthcare. It is most obvious as a payroll tax at 18.5% of the gross salary, which employers deduct and forward to the authorities on behalf of their employees. At the same time, it is also paid by self-employed people, and sometimes its rate may be higher due to minimum expectations.
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When you are planning property investment in Hungary, you should take into consideration not only the price of real estate, but also the taxes you will have to pay after purchase, rental, are sale. They will depend on various factors, including your tax residency and your long-term plans. As such, it makes sense to consult a tax advisor before you take the first step.
The post Taxes on property investment in Hungary appeared first on Helpers Hungary.
Here at Helpers we are trying to make Hungarian administration easier to navigate. Now we have created a new page listing taxes relevant to most Hungarian companies so that company owners can get a quick overview of what to expect when setting up their business in Hungary.
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A double taxation treaty is an agreement between two countries that lets them protect their tax residents from paying taxes twice after the same income – something that might happen if rules of taxation are applied without discretion.
The post What is a double taxation treaty? appeared first on Helpers Finance.
Extended Producer Responsibility is the concept that manufacturers and distributors are responsible for the entire life cycle of a product, not just up till the point of sale. In line with this, EPR charge is a type of tax that is supposed to cover costs of the treatment of products at the end of their life cycle, namely, waste management and recycling.
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What you know as sales tax in the U.S. is more or less the same as VAT or Value Added Tax in Europe. Both are consumption-based taxes that are collected indirectly, meaning that while it is the end user who ultimately pays them, they are integrated into prices and collected by the seller. However, while sales tax should be collected only from the end user, VAT is collected at every point of sale – while remaining economically neutral for businesses.
The post What is the difference between sales tax and VAT? appeared first on Helpers Finance.