Hungary
Individual - Foreign tax relief and tax treaties
Last reviewed - 31 December 2022Foreign tax relief
If a DTT does not apply, Hungarian residents are also taxed on foreign-source employment income, but credit is given for foreign taxes paid. The credit may neither exceed 90% of the foreign tax paid abroad nor the Hungarian PIT calculated with the Hungarian tax rate on the foreign income.
Individuals have to make quarterly tax advance payments calculated on the gross income they receive from abroad if they become subject to taxation in Hungary (e.g. they perform their activities in Hungary). Where DTTs apply, they usually provide an exemption, rather than credit, for foreign taxes.
Tax treaties
Double tax treaties (DTTs)
Currently Hungary has DTTs with the following countries:
Albania | Iran | Qatar |
Armenia | Ireland | Romania |
Australia | Israel | Russia |
Austria | Italy | San Marino |
Azerbaijan | Japan | Saudi Arabia |
Bahrain | Kazakhstan | Serbia |
Belarus | Korea | Singapore |
Belgium | Kosovo | Slovak Republic |
Bosnia and Herzegovina | Kuwait | Slovenia |
Brazil | Latvia | South Africa |
Bulgaria | Liechtenstein | Spain |
Canada | Lithuania | Sweden |
China | Luxembourg | Switzerland |
Croatia | Macedonia | Taipei |
Cyprus | Malaysia | Taiwan |
Czech Republic | Malta | Thailand |
Denmark | Mexico | Tunisia |
Egypt | Moldova | Turkey |
Estonia | Mongolia | Turkmenistan |
Finland | Montenegro | Ukraine |
France | Morocco | United Arab Emirates |
Georgia | Netherlands | United Kingdom |
Germany | Norway | United States |
Greece | Oman (Sultanate of Oman) | Uruguay |
Hong Kong | Pakistan | Uzbekistan |
Iceland | Philippines | Vietnam |
India | Poland | |
Indonesia | Portugal |
Social security agreements
Hungary has social security agreements with Albania, Australia, Bosnia and Herzegovina, Canada, India, Japan, Korea, Macedonia, Moldova, Mongolia, Montenegro, Quebec, Serbia, Turkey, and the United States (US). New social security agreement came into force as of 1 December 2020 between Russia and Hungary. The social security agreement concluded between Hungary and the Soviet Union is only applicable to Ukraine. The social security agreement concluded with Yugoslavia is only applicable to Kosovo.
In addition, the Hungarian local rules are subject to EU rules on social security.