Hungary

Hungary's Rankings
CategoryRankScore
Overall Rank1369.02
Corporate Taxes675.42
Individual Taxes974.93
Consumption Taxes3643.07
Property Taxes1762.73
Crossborder Taxes497.4

Hungary ranks 13th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.


Strengths

  • Hungary has the lowest corporate tax rate in the OECD, at 9 percent.
  • Hungary has a flat personal income tax system.
  • Controlled Foreign Corporation rules are better-than-average.

Weaknesses

  • Companies are severely limited in the amount of net operating losses they can use to offset future profits, and companies cannot use losses to reduce past taxable income.
  • Hungary has the highest VAT rate among OECD countries, at 27 percent.
  • Hungary levies taxes on estates, real estate transfers, and bank assets.

Learn more about the tax system in Hungary

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