All about taxes for expats in Hungary

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Diksha Moderator

Member since 01 September 2017

DikshaModerator20 October 2021 10:52:55

4832

Hi everyone,

Taxation is an important subject, especially when you are an expatriate in Hungary. We would like to know what you think about the tax system in your host country. This could be helpful to other people preparing for expatriation in Hungary.

How to do your tax return in Hungary? Are there different steps beforehand and if so, what are they?

Is it easy or did you have to get help to complete it?

Are there any important elements that should be taken into account when doing your tax return in Hungary?

If you are self-employed, do you need an accountant to do your tax return?

Is there a non-double taxation agreement with your home country? In any case, do you have to pay taxes there as well?

Thanks for your contribution!

Diksha,
Expat.com team

cdw057 ViP

Member since 01 November 2017

cdw057ViP27 October 2021 11:34:10

1967

Taxes in Hungary are more then fine as far as I am concerned, income tax, social security, ... This of course is especially for those have limited income but higher capital.
Especially for retirees it is (from this perspective) I would say excellent.

The drawback in Hungary is cost of living is increasing YOY significantly, this combines with lask of skilled workers (gardeners, doctors, ..)

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert27 October 2021 15:19:25

12184

deleted

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert27 October 2021 15:27:21

12184

cdw057 wrote:
....

The drawback in Hungary is cost of living is increasing YOY significantly, this combines with lask of skilled workers (gardeners, doctors, ..)

The fuel price increases are having knock on effects everywhere.

When the gas bills come in, I expect some serious financial problems in HU. A bad winter and it'll be really tough on the population.

I noticed this morning Putin is leaning on Moldova over gas prices. EU and Romania is going to keep them afloat with emergency measures. Not sure how it'll turn out.

mgbs Member

Member since 09 February 2020

mgbsMember30 November 2021 18:13:18

Hi Diksha
I employ an accountant to do my taxes in Hungary
Best Regards
Prem

cdw057 ViP

Member since 01 November 2017

cdw057ViP31 December 2021 12:26:29

1967

Perhaps I was not clear in my post, tax declarations and for that matter tax-level, is easy and low respectively, yes I need my accountant to do it (as I do not speak or read Hungarian), but really easy and straightforward.

fidobsa Serial expat

Member since 11 November 2011

fidobsaSerial expat30 April 2022 05:44:27

505

I didn't think this was an issue for me but now I'm not so sure. I thought because I don't work and have never received an income from Hungary that I didn't need to do tax returns in Hungary. I live in Croatia now but lived in Hungary from 2011 to 2018. My only income is from renting out my cottage in Scotland. I have always filed UK tax returns but my income is below the personal allowance so I don't pay tax. At the moment I'm having difficulties with the UK online income tax site and posted about this on my Facebook page. One of my Facebook friends, also an expat. replied that I should not be doing tax returns in the country where I get the income but in the country where I live. Another friend, a British expat. retired in Germany says in his case he has checked and he definitely has to declare his UK pension income in UK, not Germany. I'm confused!

cdw057 ViP

Member since 01 November 2017

cdw057ViP30 April 2022 06:54:02

1967

Life can be complicated (especially taxes), world wide income is the driving issue I am afraid. I lived and worked in Netherlands, UK, Luxembourg and Hungary (and I got some rent from an apartment in the Netherlands (which I sold n the meantime because of the tax-authorites accross border were interested).

In Hungary there is a flat tax, of course applying tax treaties with low income can be requested, I think it is fine, but any country where you live would be interested to get their share.

I am not a tax specialist, but my view would be that Hungary could make a claim on your renting income abroad. If you or your representative can deal with (ANY) authorities that would be fine, I have been in some tax-disputes/discussions myself and it can be time-consuming (having said that these discussions can also turn into an advantage)

cdw057 ViP

Member since 01 November 2017

cdw057ViP30 April 2022 06:56:12

1967

By the way I live in Turkey now and I am worried on the date when I turn 65. (Perhaps a good timing to return to Hungary)

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert30 April 2022 08:25:56

#10

12184

By the way I live in Turkey now and I am worried on the date when I turn 65. (Perhaps a good timing to return to Hungary)
- @cdw057

What happens when you turn 65?

(sorry, cannot get the formatting right, press quote and cannot get out of the quote mode for inline text. Weird. Might work to press Reply, then cut and paste and then apply the quote button)

SimCityAT Expert

Member since 08 April 2014

SimCityATExpert30 April 2022 08:53:46

#11

11429

(sorry, cannot get the formatting right, press quote and cannot get out of the quote mode for inline text. Weird. Might work to press Reply, then cut and paste and then apply the quote button)
- @fluffy2560

Its easy just hit enter a couple of times

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert30 April 2022 09:33:15

#12

12184

(sorry, cannot get the formatting right, press quote and cannot get out of the quote mode for inline text. Weird. Might work to press Reply, then cut and paste and then apply the quote button)
- @fluffy2560
Its easy just hit enter a couple of times
- @SimCityAT

Doesn't work!

cdw057 ViP

Member since 01 November 2017

cdw057ViP30 April 2022 09:59:16

#13

1967

@fluffy2560 I do not know what will happen (getting pensions from so many countries, however in Turkey income tax could be easily 35% (+ social security). I have no clue they will assess these (eg could they consider that income taxes withhold in the paying countries sufficient (I do not think so, but I can hope). Also a bit concerned on capital gainst (eg I have a pension scheme here and there, will they tax this as capital gain once I get 65?).

If I will not declare, probably nobody would even notice, however I have played by the books, but the books are incredibly unclear. (understandably I have to say)

Still I prefer to be taxed at a fixed rate (Hungaria/Bulgaria) and ideally with nasty interpretations of captal gain tax.

One out of the box example, assuming you have EUR or USD and convert into TRY, is that gains (by the way a similar consideration for HUF at a certain stage)). I suppose you convert EUR/USD 1.000 n a while it will be neglected, but if I were to be a tax man I would focus on this (making money on the back of inflation/depreciation). And YES measured in HUF (or TRY) you have gained (that inflation is at the bottom of it is a different matter). Also if excessive inflation is back, it is likely to receive interest (ie INCOME), so part of the inflation has to be returned (with low income tax in Hungary not a real problem, but imagine 60% inflation and you have to pay 35% of that (ie effectively 20% of your savings?)

Worries which have not surfaced yet.

SimCityAT Expert

Member since 08 April 2014

SimCityATExpert30 April 2022 11:05:31

#14

11429

Strange Mr Fluffy, maybe log an issue in the Expert forum.

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert30 April 2022 12:21:53

#15

12184

@SimCityAT

Strange Mr Fluffy, maybe log an issue in the Expert forum.
- @SimCityAT

This is a cut and paste reply - quote doesn't work.

Using Firefox.

I'll log it.

SimCityAT Expert

Member since 08 April 2014

SimCityATExpert30 April 2022 12:37:00

#16

11429

@SimCityAT
Strange Mr Fluffy, maybe log an issue in the Expert forum.
- @SimCityAT
This is a cut and paste reply - quote doesn't work.

Using Firefox.

I'll log it.
- @fluffy2560

I am using Google Chrome and works fine for me.

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert30 April 2022 12:42:55

#17

12184

@SimCityAT

Strange Mr Fluffy, maybe log an issue in the Expert forum.
- @SimCityAT

This is a cut and paste reply - quote doesn't work.

Using Firefox.

I'll log it.
- @fluffy2560

I am using Google Chrome and works fine for me.
- @SimCityAT

This one is a cut and paste as well.

Firefox has some inconsistencies with Chrome. There are a lot of Chrome based versions like Vivaldi. They are all much of a muchness. I use Firefox, Vivaldi and Chrome to varying degrees and for different purposes. Firefox has had a memory leak for years which means it just stops responding. It could be an add-on but I've never found out which one is doing it.

Cynic UK / Netherlands Expert

Member since 15 September 2015

CynicUK / Netherlands Expert30 April 2022 14:37:08

#18

7714

@SimCityAT
Strange Mr Fluffy, maybe log an issue in the Expert forum.
- @SimCityAT
This is a cut and paste reply - quote doesn't work.

Using Firefox.

I'll log it.
- @fluffy2560
I am using Google Chrome and works fine for me.
- @SimCityAT
I just tried it from Google Chrome and got the same. I don't think it's a browser issue.

SimCityAT Expert

Member since 08 April 2014

SimCityATExpert30 April 2022 15:06:25

#19

11429

@SimCityAT
Strange Mr Fluffy, maybe log an issue in the Expert forum.
- @SimCityAT
This is a cut and paste reply - quote doesn't work.

Using Firefox.

I'll log it.
- @fluffy2560
I am using Google Chrome and works fine for me.
- @SimCityAT
I just tried it from Google Chrome and got the same. I don't think it's a browser issue.
- @Cynic

This really is strange, I have no issues

papa1980 New member

Member since 04 May 2022

papa1980New member12 July 2022 20:40:48

#20

@mgbs hello could you pelase recommend account?

papa1980 New member

Member since 04 May 2022

papa1980New member12 July 2022 20:41:50

#21

Perhaps I was not clear in my post, tax declarations and for that matter tax-level, is easy and low respectively, yes I need my accountant to do it (as I do not speak or read Hungarian), but really easy and straightforward.
- @cdw057

Could you pelase be so kidn and recommend account?

cdw057 ViP

Member since 01 November 2017

cdw057ViP13 July 2022 05:00:37

#22

1967

@papa1980 I used VGKE in Budapest, just google, I have been quite happy over the years, perhaps there are better, but I had/have my Kft and they did things well.

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