Quick answer
Hungary has double tax treaties with more than 80 countries in 2026, but no longer with the United States since 2024. Treaties decide where you are resident and cap tax on cross-border income. Hungary charges no withholding tax on payments to foreign companies. Foreign individuals pay 15% on Hungarian dividends, reduced under a treaty.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Check my tax setup →You earn income across borders and Hungary is one of the countries involved. Maybe you live there with foreign clients, or you left and still have Hungarian income. This guide shows what Hungary's treaties do for you in 2026 and how to actually claim the benefit.
Hungary international tax treaties in 2026: the key figures
| Item | Rule in 2026 |
|---|---|
| Double tax treaties in force | More than 80 |
| Treaty with the United States | Terminated from 1 January 2024 |
| Withholding on dividends, interest, royalties to foreign companies | 0% under domestic law |
| Withholding on dividends to foreign individuals | 15%, typically reduced to 5%–15% by treaty |
| Relief for residents | Exemption or credit under the treaty; unilateral credit where none exists |
| Proof needed for treaty rates | Certificate of tax residence from your home authority |
| Multilateral Instrument (MLI) | Applies, adding a principal purpose test |
| Information exchange | OECD Common Reporting Standard and EU directives |
Is this guide for you?
Read on if you…
- live in Hungary and earn income from abroad;
- receive Hungarian dividends, rent or salary while living elsewhere;
- might be considered resident in Hungary and another country at the same time.
Probably not your case if you…
- earn all your income in Hungary and never had another tax home;
- only need the overall picture: start with the Hungary tax landscape overview.
What do Hungary's tax treaties actually do?
A double tax treaty is an agreement between two countries. It decides which one may tax each type of income and how the other gives relief. Hungary's treaties mostly follow the OECD model.
They do three jobs for you:
- Settle dual residence. If both countries see you as resident, tie-breaker rules pick one. The order is permanent home, then centre of vital interests (basically where your life is), then habitual abode, then nationality.
- Allocate taxing rights. Property income goes to where the property is. Salary goes to where you physically work, with a 183-day exception for short stays. Business profit goes to your residence, unless you have a permanent establishment, basically a fixed base, in the other country.
- Cap withholding taxes on dividends, interest and royalties.
Treaties never create a tax. They only limit what domestic law already charges.
What happened to the Hungary–US treaty?
The United States terminated its 1979 treaty with Hungary. It stopped applying from 1 January 2024.
Here's what that means in 2026:
- US dividends paid to Hungarian residents face the full 30% US withholding.
- Hungarian residents rely on Hungary's unilateral foreign tax credit instead of treaty relief.
- US citizens living in Hungary pay tax in both countries, with only domestic credits to soften it.
The US–Hungary social security agreement still applies. It is a separate agreement and was not terminated.
How do you claim a reduced withholding rate on Hungarian income?
Hungary charges no withholding tax on dividends, interest or royalties paid to foreign companies. So this section matters mostly for individuals.
Procedure for a non-resident individual
- Get a certificate of tax residence from your home tax authority, for the year of payment.
- Give it to the Hungarian payer before the payment, with a statement that you are the beneficial owner.
- The payer applies the treaty rate directly at source.
- If 15% was already withheld, file a refund claim with NAV with the certificate and payment proof.
Most treaties reduce dividend tax to 5%–15% and interest tax to 0%–10%. Check the specific treaty text on the NAV or Ministry of Finance pages before relying on a rate.
How do Hungarian residents get credit for foreign tax?
As a Hungarian resident, you pay on worldwide income. To avoid double taxation, Hungary uses two methods.
Under a treaty
- Exemption: some treaties exempt foreign income, such as salary for work done abroad, from Hungarian tax.
- Credit: for dividends, interest and many other items, you deduct the foreign tax from your Hungarian tax, up to the Hungarian tax on that income.
Without a treaty
The Personal Income Tax Act gives a unilateral credit: 90% of the foreign tax paid, capped at the Hungarian tax on that income. That covers US income since 2024.
How do you claim it?
You declare the foreign income and the foreign tax in your annual return, due 20 May. Keep the foreign tax certificates. NAV's draft return will not include them. When does residence start or stop? See the guides to obtaining and ceasing your Hungarian tax residency.
What about social security and information exchange?
Social security
Tax treaties do not cover social contributions. Within the EU, EEA and Switzerland, EU Regulation 883/2004 applies: you pay in one country at a time. An A1 certificate proves which one. Hungary also has bilateral social security agreements with several non-EU countries.
Information exchange
Hungary exchanges account data under the OECD Common Reporting Standard and the EU's DAC rules. From 2026, DAC8 adds crypto-asset reporting. Treaties also allow NAV to request data on specific taxpayers. Your crypto and foreign accounts will be visible.
Example – Petra, Hungarian-Estonian product manager
Petra lives in Budapest and owns shares in an Estonian company. In 2026 she receives a EUR 20,000 dividend. Under the Hungary–Estonia treaty, Estonia's withholding is limited, and Hungary taxes the dividend at 15% PIT plus szocho up to the cap. She credits any Estonian tax against the Hungarian PIT. Without her Hungarian residence certificate, the Estonian payer would apply its full domestic rate.
Petra's dividend crossed two systems and one treaty. Yours probably does too.
Get a quick check of which treaty applies to your income and how to claim it.
Check my tax setup →Common mistakes (and what they cost)
- Assuming the old US treaty still applies → double taxation on US income without the expected reduced rates.
- Not sending a residence certificate before payment → full 15% Hungarian withholding and a slow refund claim.
- Claiming foreign tax credit above the Hungarian tax → the excess is lost and NAV corrects the return.
- Ignoring tie-breaker rules after a move → two countries treating you as resident and taxing worldwide income.
- Confusing tax treaties with social security rules → contributions paid in the wrong country.
Frequently asked questions
How many tax treaties does Hungary have?
Hungary has double tax treaties in force with more than 80 countries, covering all EU member states and most major economies. They mostly follow the OECD model. The list and texts are published by the Hungarian tax authority and the Ministry for National Economy. The United States is no longer on the list since 2024.
Does Hungary have a tax treaty with the United States?
No, not since 1 January 2024. The United States terminated the 1979 treaty. US withholding on dividends to Hungarian residents is therefore 30%, and Hungarian residents rely on Hungary's domestic credit for US tax. The separate social security agreement between the two countries remains in force.
What withholding tax applies in Hungary without a treaty?
Payments to foreign companies carry no Hungarian withholding tax on dividends, interest or royalties. Payments to foreign individuals are different: dividends, interest and some other income pay 15% personal income tax at source. Without a treaty, or without a residence certificate, the full 15% applies and stays final.
How do I get a Hungarian tax residence certificate?
You request it from NAV, usually through its online services or with a written application. You give your tax number, the year and the country where you will use it. NAV checks that you meet Hungary's residence tests before issuing it. Foreign payers and tax authorities ask for it to apply treaty rates.
Does Hungary use the exemption or credit method?
Both. Many Hungarian treaties exempt certain foreign income, such as salary for work done abroad, while taking it into account for rates in older texts. Dividends, interest and royalties usually get a credit instead. Without a treaty, Hungary gives a unilateral credit for part of the foreign tax.
Do tax treaties cover social security contributions in Hungary?
No. Tax treaties cover income taxes only. Social security is governed by EU Regulation 883/2004 within the EU, EEA and Switzerland, and by bilateral social security agreements with some other countries. Under these rules you pay contributions in one country at a time, proven by an A1 or equivalent certificate.
Related guides
- Hungary tax landscape overview
- How to become tax resident in Hungary
- How to cease your Hungarian tax residency
- Capital gains tax in Hungary
- Corporate income taxes in Hungary
- International tax treaties of Romania
- Tax treaties of Estonia
- All country tax guides
Sources
- National Tax and Customs Administration of Hungary (NAV)
- National Legislation Database – treaty promulgation acts and the Personal Income Tax Act
- Hungarian Government – Ministry for National Economy
- OECD – Tax treaties
- US Internal Revenue Service – Tax treaties
- European Commission – Social security coordination
This guide is general information, not personalised tax advice. See how we research and review.
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