In relation to Hungarian business operation, the retention period of documents is the time for which you are obligated to keep documents accessible and safe. The retention period of different documents varies, but it is always mandated by law. If multiple regulations mention one type of document, always the longer period prevails. Regulations apply to both electronic and physical documents.
Calculating retention periods
When calculating the retention period of a document, you always calculate from the end of the relevant fiscal year. For example, if a document is created on August 1, 2026, and its retention period is 5 years, it has to be stored until December 31, 2031.
Once the retention period is up, you are allowed to get rid of documents. You cannot simply throw sensitive documents in the trash, however: you are supposed to dispose of them safely, in a way that no information may be recovered from them. For hard copies, you can use a shredder; for digital storage, various methods are available.
IMPORTANT! Retention periods apply even if the company is liquidated before their expiry. In that case, it is your personal responsibility as a managing director to provide the documents upon request, e.g. for a tax inspection.
Retention periods: 5, 8, 10 years, or even longer?
1) 5 years – the baseline
The baseline is 5 years. Any document not specifically mentioned by regulations should be stored safely for at least 5 years.
2) 8 years
Supporting documents for accounting should be kept for 8 years due to possible criminal liability. This includes invoices and receipts – even if they were canceled and corrected – as well as general ledger accounts, analytical accounts and exhaustive registers, as well as bank account statements.
3) 10 years
Annual reports, balance sheets, general ledgers, and supporting documents such as inventory sheets should be kept for 10 years.
4) Possibly even longer
Because of how pensions are calculated in Hungary, employment and payroll related documents should be stored for 5 years after the employee reaches retirement age.
Safe and accessible storage
As you can see, most of these documents, especially those with longer retention periods concern accounting and payroll. As such, most of them can be stored by your accountant. To maintain compliance with regulations, make sure to discuss this topic with them.
Appropriate storage means the following things:
- Accessibility: you must be able to produce specific documents upon request
- Readability: the information in the documents must be legible
- Safety: documents cannot be lost or deleted, while unauthorized access should be prevented
Additionally, electronic documents should be stored in a way that prevents alteration.
Business setup with Helpers
The Helpers Team has 20+ years of experience providing a wide range of services relevant to business setup and operation in Hungary. Not only do we take care of company registration but we also provide registered seat with mail forwarding as well as accounting and payroll services. If you need guidance navigating Hungarian bureaucracy, you can count on the guidance of our experts.
FREQUENTLY ASKED QUESTIONS
As an owner / managing director, it is your duty to take care of the safe storage of business related documents. Some of them may be stored with your accountant or payroll specialist; make sure to discuss the topic with them.
This depends on your seat provider, but probably not. The main function of a registered seat provider is to receive official mail intended for your Hungarian company and forward it to you or your accountant. Short term storage of incoming mail is normal, long term storage of other documents is not typical.
Document retention times apply even if your Hungarian company is no longer operational. Within the retention period, authorities may request any documents from you for verification, even if relevant reports were submitted on time. It is your responsibility as an owner or managing director to take care of the safe storage of relevant documents for as long as required.
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