Recht und Steuern | Legal and tax

As a EU/EEA citizen or ditto legal entity you are entitled to many international privileges, such as freedom of movement of individuals, capital, goods and services, applicable in now 27 EU countries plus 3 EEA countries (Iceland, Liechtenstein and Norway) and, additionally, Switzerland. These privileges include travelling to, through and from Hungary (Schengen zone). No visa. No registration requirements.

Red arrow: Hungary

Dark blue area: EU part of Schengen zone
Light blue area: non-EU part of Schengen zone
Yellow area: future Schengen zone
Green area: EU part of non-Schengen zone

As a EU/EEA tourist you are allowed a VISA FREE maximum stay of 90 days at a time in Hungary, no questions asked. More than sufficient for any regular holiday or prolonged visit for intended business, leasure or otherwise. Moreover, the 90 day maximum is quite hypothetical, as entering or leaving Hungary other than by airplane is not registered at all and staying in Hungary as a EU/EEA foreigner is not actively checked.

As a EU/EEA part-time resident you are allowed a maximum stay of 183 days a year (= half minus one). This implies the obligation to register, should your stay exceed 90 days. This does not imply the obligation to register, should your consecutive stays not exceed 90 days at a time and not exceed 183 days per year. You might chose to keep living in your home country for (a little more than) half the year and live in Hungary as your second home country for (a little less than) half the year.

As a non EU/EEA tourist from a great number of countries (see list below) you are allowed a VISA FREE maximum stay of between 1 month and 120 days at a time, depending on your country of origin (usually 90 days). Equally sufficient for any regular holiday or prolonged visit for intended business, leasure or otherwise, compared to EU/EEA nationals. The VISA FREE countrylist comprises:

• Albania (only holders of biometric passports)
• Andorra
• Antigua and Barbuda
• Argentina
• Australia
• Bahamas
• Barbados
• Bosnia and Herzegovina (only holders of biometric passports)
• Brazil
• British nationals (overseas)
• Brunei Darussalam
• Canada
• Chile
• Costa Rica
• Croatia, former Yugoslav Republic of Macedonia (only holders of biometric passports)
• Guatemala
• Holy See
• Honduras
• Hong Kong (only holders of Special Administrative Region passports)
• Israel
• Japan
• Macao (only holders of Regiao Administrativa Especial de Macau passports)
• Malaysia
• Mauritius
• Mexico
• Moldova (only holders of biometric passports)
• Monaco
• Montenegro (only holders of biometric passports)
• New Zealand
• Nicaragua
• Panama
• Paraguay
• Salvador
• San Marino
• Serbia (only holders of biometric passports)
• Seychelles
• Singapore
• South Korea
• Saint Kitts and Nevis
• Taiwan (only holders of passports including an identity card number)
• United States of America
• Uruguay
• Venezuela

The official Hungarian government list below comprises the following VISA FREE countries, both EU/EEA and non EU/EEA, with further details:

Country	Types of travel documents ensuring visa-free travel	Length of visa-free stay*	Note
Albania	OP, D, S	90 days	5.)
Algeria	D	1 month
Andorra	OP, D, S, ID	90 days
Antigua and Barbuda	OP, D, S	3 months
Argentina	OP, D, S	3 months
Armenia	D, S	30 days
Australia	OP, D, S	3 months
Austria	OP, D, S, ID	90 days	4.)
Azerbaijan	D, S	90 days
Bahamas	OP, D, S	3 months
Barbados	OP, D, S	3 months
Belarus	D, S	90 days
Belgium	OP, D, S, ID	3 months	4.)
Bulgaria	OP, D, S, ID	90 days	4.)
Bosnia and Herzegovina	OP, D, S	90 days	5.)
Brazil	OP, D, S	90 days
Brunei	OP, D, S	30 days
Cambodia	D, S	90 days
Canada	OP, D, S	3 months
Cape Verde	D, S	90 days
Chile	OP, D, S	90 days (OP) 3 months (D, S)
China	D, S	D: 90 days / S: 30 days
Colombia	OP, D, S, special passport	90 days	maximum period of 90 days in any 180-day period
Commonwealth of Dominica	OP, D, S	90 days
Costa Rica	OP, D, S	90 days
Croatia	OP, D, S, ID	90 days	2.)
Cuba	D, S	90 days
Cyprus	OP, D, S, ID	90 days	4.)
Czech Republic	OP, D, S, ID	90 days	4.)
Democratic Republic of Timor-Leste	OP, D, S	90 days
Denmark	OP, D, S, ID	90 days	4.)
Ecuador	D, S	90 days
Egypt	D	90 days
Estonia	OP, D, S, ID	90 days	4.)
Travel documents issued by the EC	Laissez-passer travel documents	90 days	1.)
Federated States of Micronesia	OP, D, S	90 days
Finland	OP, D, S, ID	3 months	4.)
France	OP, D, S, ID	3 months	4.)
Georgia	D, S	30 days
Germany	OP, D, S, ID	90 days	4.)
Greece	OP, D, S, ID	3 months	4.)
Grenada	OP, D, S	90 days
Guatemala	OP, D, S	3 months
Holy See	OP, D, S	90 days
Honduras	OP, D, S	3 months
Hong Kong	The passport of the special administrative territory of Hong Kong	90 days
India	D, S	90 days
Indonesia	D, S	90 days (from 01.05.2013)
Iran	D	30 days
Iceland	OP, D, S	3 months	4.)
Ireland	OP, D, S	90 days	4.)
Israel	OP, D, S	90 days
Italy	OP, D, S, ID	90 days	4.)
Japan	OP, D, S	90 days
Kazakhstan	D, S	30 days
Kyrgyzstan	D, S	30 days
Korea (Republic)	OP, D, S	90 days
Kuwait	D, S	90 days
Laos	D, S	90 days
Latvia	OP, D, S, ID	90 days	4.)
Lebanon	D	90 days
Liechtenstein	OP, D, S, ID	90 days	4.)
Lithuania	OP, D, S, ID	90 days	4.)
Luxembourg	OP, D, S, ID	3 months	4.)
Macedonia (FYROM)	OP, D, S	90 days	5.)
Macao	The passport of the special administrative territory of Macao	90 days
Malaysia	OP, D, S	90 days
Malta	OP, D, S, ID	90 days	4.)
Marshall Islands	D, S, OP	90 days
Mauritius	OP, D, S	3 months
Mexico	OP, D, S	90 days
Moldova	OP, D, S	90 days
Monaco	OP, D, S, ID	90 days
Mongolia	D, S	30 days
Montenegro	OP, D, S	90 days	5.)
Morocco	D, S	90 days
Netherlands	OP, D, S, ID	3 months	4.)
New Zealand	OP, D, S	90 days
Nicaragua	OP, D, S	90 days
Norway	OP, D, S, ID	90 days	4.)
Palau	OP, D, S, special passport	90 days	maximum period of 90 days in any 180-day period
Panama	OP, D, S	90 days	maximum period of 90 days in any 180-day period
Paraguay	OP, D, S	90 days
Peru	OP, D, S	90 days
Philippines	D, S	90 days
Poland	OP, D, S, ID	90 days	4.)
Portugal	OP, D, S, ID	90 days	4.)
Republic of Kiribati	D, S, OP	90 days
Romania	OP, D, S, ID	90 days	4.)
Russia	D, S	90 days
Saint Kitts and Nevis	OP, D, S	3 months
Saint Lucia	OP, D, S	90 days
SaintVincent and the Grenadines	OP, D, S	90 days
Salvador	OP, D, S	90 days
Samoa	OP, D, S	90 days
San Marino	OP, D, S, ID	90 days
Seychelles	OP, D, S	3 months
Solomon-Islands	OP, D, S	90 days
South Africa	D, S	120 days	Official passports issued by the Republic of South Africa are accepted
Spain	OP, D, S, ID	90 days	4.)
Sweden	OP, D, S, new ID card	90 days	3.), 4.)
Switzerland	OP, D, S, ID	90 days
Serbia	OP, D, S	90 days	5.)
Singapore	OP, D, S	90 days
Slovakia	OP, D, S, ID	90 days	4.)
Slovenia	OP, D, S, ID	90 days	4.)
Swaziland	D	30 days
Taiwan	OP, D, S	3 months	6.)
Tajikistan	D, S	90 days
Thailand	D, S	90 days
Tonga	OP, D, S, special passport	90 days	maximum period of 90 days in any 180-day period
Trinidad and Tobago	OP, D, S	90 days
Turkey	D, S	90 days	With special passports as well
Tunisia	D, S, OP	90 days
Turkmenistan	D, S	90 days
Tuvalu	D, S, OP	90 days
Ukraine	D, S	90 days
United Arab Emirates	OP, D, S	90 days
United Kingdom	OP, D, S	90 days	4.)
Uruguay	OP, D, S	90 days
USA	OP, D, S	90 days
Uzbekistan	D	30 days
Vanuatu	OP, D, S	90 days
Venezuela	OP, D, S	90 days
Vietnam	D, S	90 days
Yemen	D	90 days

Abbreviations of travel documents:

OP.: ordinary passport
D.: diplomatic passport
S.: service passport
ID.: Identity Card

*For a stay exceeding that period visa or residence permit is needed according to the regulation pertaining to the respective country

1.) European Community: members of the Delegation of the Committee of EC are allowed to enter to Hungary visa-free with the mentioned travel documents, and they are allowed to stay there for the period of their service visa-free.

2.) Croatia: citizens of Croatia are allowed to enter to Hungary with an ID only if the purpose of their stay is not employment or earning an income.

3.) Sweden: Swedish citizens are allowed to travel to Hungary with the new plastic identity card (which was issued after October 1st, 2005 and includes data of the owner’s citizenship).

4.) Member of European Economic Area (EEA)

5.) The exemption from the visa requirement applies only to holders of biometric passports.

6.) The exemption from the visa requirement applies only to holders of passports issued by Taiwan which include an identity card number.

Staying in Hungary for more than 183 days a year and/or registering as a Hungarian resident implies proving some form of basic income or capital to show you are able to maintain an independant livelihood without calling upon social security from the Hungarian state. However, these demands are in most cases easily met and incredibly low, compared to the demands most other EU/EEA member states make. Even an average social security income or pension derived from prosperous Western or Northern European states and/or a modest amount of life savings will usually meet minimum qualifications and more than suffice for ordinary daily life in Hungary.

Furthermore, as a general rule, Hungarian police and other authorities show no interest whatsoever in the movements and whereabouts of EU/EEA nationals, provided you drive a foreign licenceplated car – so you can’t be mistaken for a Hungarian national – abide by the traffic rules, live an inconspicuous life and don’t cause trouble or nuisance. In other words: just behave normally, as you would in any other civilised developed country and you will be overwhelmed by a feeling of unhampered liberty in Hungary, a sensation long gone in most Western and Northern European countries. As a general rule, neither inhabitants nor authorities will ask you any W5 questions (who, what, where, when, why). It’s live and let live wherever you go in Hungary’s cities and on its countryside. Just stick to general rules of common sense and nobody will bother you.

As in most Central and Eastern European countries you should however strictly observe the zero tolerance policy towards alcohol and road traffic (0% blood’s alcohol content). Don’t drink and drive. Instead, take a (cheap) taxi, use (incredibly cheap) public transportation or have somebody sober drive your car.

Owning a Hungarian property even fortifies your international legal privileges without any necessity to become a Hungarian taxpayer. On the other hand, should you decide to emigrate and become a Hungarian resident once you own a Hungarian property, it’s surprisingly easy to obtain an official Hungarian address card (lakcím) and enjoy all the tax privileges Hungary has to offer, such as a flat rate income tax of only 16% for everybody regardless of their world income as well as incredibly cheap basic health insurance against premiums you may only dream of in your home country. It’s not even necessary to emigrate to obtain a Hungarian address card. You may have (some of) it both ways. Consult a tax lawyer if necessary.

Hungarian taxes are attractively low, except for VAT (27%) which is the highest in the EU/EEA, making it all the more surprising life in Hungary is generally so cheap for foreigners. Should you consider emigrating to Hungary, setting up a business there or plan to derive any income from Hungary, you should consult a tax lawyer. Otherwise, as a EU/EEA tourist (maximum 90 days stay at a time) or part-time resident (less than 183 days a year), you will almost certainly incur no tax obligations in Hungary other than the one-off 4% transfer tax related to the purchasing price of the property. Unlike many other European countries, you won’t have to pay the transfer tax upfront. The Hungarian tax autorities will give you several months interestfree credit and you will receive a written invitation to pay. Should you resell the property, any profit will be charged with 16% Hungarian capital gains tax. Should you pass away, Hungarian inheritance tax (rate starting at 2.5%) may incur based on the net value of your Hungarian property. A local tax of approximately GBP 23 (EUR 26.50) per year (indeed, per year) is levied on the property for sale. No other state, provincial or municipal taxes are levied on this property. However, this applies only to the Hungarian situation. Depending on your home country, domestic taxes such as wealth tax may apply. Hungary has concluded tax treaties with many countries to avoid double taxation. Consult a tax lawyer in your home country, if necessary.