Operating a company in Hungary? Then take a quick look at our streamlined guide of key updates to taxes in 2025. If you see something that might be relevant to your business operation, contact your accountant to discuss how to proceed.
For a full list of changes, click here.
1. Data reconciliation procedure
The Hungarian Tax Authority (NAV) has introduced a new, simplified data reconciliation process. If discrepancies are found in submitted data, NAV can now address them through a straightforward reconciliation procedure instead of initiating a full compliance audit. This will help businesses quickly resolve obvious errors.
2. E-bill system delay
The introduction of an electronic billing system has been postponed to 1 July 2025. Sellers have long been able to issue electronic invoices, which automatically report to NAV. The new e-bill system, designed for bills, which are basically simplified invoices, will also enable tax base reductions in cases of price corrections, effective from the same date.
3. Global Minimum Tax
Applies to enterprise groups with annual revenue exceeding EUR 750 million. Affected Hungarian companies must:
- Report their status and group data via the ONYA platform (GLOBE form).
- Calculate and pay a top-up advance tax by 20 November 2025. This deadline will apply every year.
4. VAT-free limit increased in Hungary
As of January 1, 2025, the VAT-free limit of Hungarian businesses is increased to HUF 18 million annually (from the previous 12 million). This is good news to the smallest businesses that take advantage of VAT-free invoicing.
5. VAT-free operations in the EU
Businesses exempt from VAT in their home country can now operate VAT-free in other EU countries as well, provided their annual revenue stays below the lower of:
- Their home country’s VAT exemption threshold (HUF 18 million now in Hungary), or
- EUR 100,000.
This change is especially beneficial for freelancers and small businesses.
6. TEÁOR (NACE) Update
The classification system of business activities (NACE in English, TEÁOR in Hungarian) is updated as of January 1, 2025. This affects mostly your accounting and reporting procedures. If your main activity is also reclassified, you might need a company modification to change the articles of association of your Hungarian company.
7. Increased tax on vacation rentals in Budapest
The flat-rate tax for vacation rentals (e.g., AirBnB) in Budapest will rise to HUF 150,000/year/room. In other towns, the tax remains at HUF 38,400/year/room. The definition of “room” has also been clarified to prevent misunderstandings.
8. Inflation-linked tax increases
From 2025, certain taxes will adjust every year based on the previous year’s inflation, starting with a 20% increase. Gradual changes include:
- 2025: Motor fuel and alcoholic beverage excise duties, car tax, and vehicle acquisition duty.
- 2026: Other fuel and tobacco product excise duties, car registration tax, and company car tax.
Additionally, car registration taxes will apply to hybrid and plug-in hybrid vehicles starting 1 January 2025.
9. Intellectual property contributions
If an individual contributes intellectual property to a company, personal income tax will be waived on the property’s market value, provided the individual is the original creator.
10. Corporate tax benefits for sports expanded
Corporate tax reductions for donations to spectator team sports now extend to more organizations. Donations can also support the maintenance of sports facilities.
11. KIVA eligibility after acquisition
Businesses using KIVA (Small Business Tax) can now re-enter the scheme immediately after mergers or separations, provided no asset revaluation occurs. Previously, a 24-month waiting period applied.
12. “TEMU Tax” for online platforms
From 2025, online retail platforms must pay a retail tax based on their Hungarian revenue. This is expected to add 3-4% to their tax obligations.
13. Stricter rules for customs representatives
Starting in 2025, businesses using customs representatives for imports must provide additional documentation. Customs representatives must hold a “reliable taxpayer” status, attainable only after at least three years of operation. This change may disadvantage newer businesses.
Let the Helpers Team help you out
These updates reflect Hungary’s evolving tax landscape for businesses. For more guidance, see our more detailed description here, or consult our tax professionals.
The Helpers Team has more than 20 years of experience working with foreigners living, working, and doing business in Hungary. We focus on small and medium-sized businesses with foreign owners, and we operate as a one-stop-shop, offering assistance from company setup through accounting to residency applications connected to company operation and work in Hungary.
Let us know if we can help you.
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