Ending your tax residency in Hungary can be a complex process, but with the right steps, it can be done smoothly and efficiently. Whether you're moving abroad permanently or changing your primary place of residence, this guide will help you navigate the legal requirements to cease your tax residency in Hungary.
Step 1: Determine Your New Tax Residency
To cease your tax residency in Hungary, you must first establish your new tax residency in another country. This involves meeting the residency criteria of the new country, such as spending a certain number of days there or having a permanent home. Ensure you have the necessary documentation to prove your new tax residency.
Step 2: Notify the Hungarian Tax Authorities
Once you have established your new tax residency, you need to formally notify the Hungarian tax authorities. This is done by submitting a declaration to the National Tax and Customs Administration (NAV). The declaration should include your personal details, the date you ceased to be a resident, and evidence of your new tax residency.
Step 3: Settle Outstanding Taxes
Before you can completely end your tax residency, you must settle any outstanding taxes with the Hungarian tax authorities. This includes filing any pending tax returns and paying any taxes owed. Ensure you have all relevant documents and receipts to avoid any disputes.
Step 4: Deregister from Local Services
You must also deregister from various local services, such as healthcare, social security, and local government services. This involves notifying the relevant authorities and returning any official documents or identification cards.
Step 5: Close Hungarian Bank Accounts and Financial Services
To complete the process, close any bank accounts, investments, or other financial services you have in Hungary. Notify your financial institutions of your change in residency status and follow their procedures for closing accounts.
Legal References
- Act CXVII of 1995 on Personal Income Tax
- Act C of 2000 on Accounting
- Act CL of 2017 on the Rules of Taxation
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