Hungarian Income Tax for Foreigners: Rates and Rules

According to the Hungarian Central Statistical Office, more than 255,000 foreign residents live in Hungary in 2025. Many earn income from work, running a business, or investments within the country. Knowing how the tax system applies to foreigners helps you stay on the right side of the rules and plan your finances better. So, what tax rates apply to non-residents, and when do you need to pay? Explore our Hungarian income tax for foreigners guide and calculator to understand the process and estimate your taxes with ease.

Hungarian income tax for foreigners: how does it work?

In Hungary, both residents and non-residents pay a flat 15% personal income tax, but how this tax is applied depends on where your income comes from. Generally residents are taxed on all their earnings, whether it is coming from Hungary or abroad, while non-residents only pay tax on income connected to Hungary, such as local wages, business profits, or investment returns.

For foreigners working in Hungary, only the portion of income linked to Hungarian workdays is taxable here. When a Hungarian company pays the salary, it usually withholds the tax. If not, the individual must handle the payment and report it in their annual tax return.

Let’s look at a fictional example to see how this works in practice.

• Carl moved to Hungary in January 2025 and started working as an IT consultant at a Hungarian corporation. His gross monthly salary is 2,500,000 HUF (roughly 6,400 EUR), and he has no other income.
• He will have to pay the following taxes, which are automatically deducted from his salary:
  • 15% personal income tax (személyi jövedelemadó): 375,000 HUF
  • 18.5% social security contribution (társadalombiztosítási járulék): 462,500 HUF
  • 13% social contribution tax (szociális hozzájárulási adó): 325,000 HUF
• After these deductions, Carl receives a net salary of 1,337,500 HUF (approximately 3,430 EUR) directly from his employer, with no need to calculate the payments himself.

If you would like to learn more about the Hungarian tax system, read our related articles here:

• Taxation in Hungary: Rules, Rates And Regulations
• A Hungarian Tax Guide for Expats and Investors
• Hungary Corporate Tax Rate: The Lowest in the OECD
• Crypto Taxes in Hungary In 2025: Rules, Rates, and Tips

FAQ

How much is the income tax for foreigners in Hungary?

Hungary applies a flat income tax rate of 15% for all residents and non-residents.

Do foreigners pay social security in Hungary?

Yes, foreigners who work in Hungary are generally required to pay social security contributions, which cover healthcare, pensions, and other benefits.

Are tax treaties available for foreigners in Hungary?

Yes, Hungary has tax treaties with many countries to prevent double taxation, which can reduce or eliminate income tax obligations in some cases.

Crystal Worldwide Group: professional support for your tax needs

Crystal Worldwide Group is an international law firm which specializes in residency by investment, tax planning and wealth protection. During our more than thirty years in operation, we have managed to earn the respect and trust of our clients by offering professionally sound and lawful immigration solutions, tax savings and wealth protection, together with fast and timely services provided at the highest level of discretion.

Get in touch!