Capital Income and Investment Taxation – Hungary

Dividends from Hungarian and foreign companies: 15% final tax. Withheld at source if from Hungarian company. Foreign dividends: declare in annual return, pay 15%. No distinction between qualified/non-qualified. No holding period requirements. Straightforward 15% always.

Interest from bank deposits, bonds, loans: generally 15%. Withheld at source for Hungarian banks. Foreign interest: declare and pay 15%. Certain government bond interest may be exempt under specific conditions. Always verify exemptions.

Selling stocks, bonds, funds, other securities: 15% tax on PROFIT (sale price minus purchase price/cost basis). Must track basis carefully. Losses can offset gains. Net capital loss carried forward. No special rate for long-term holdings.

Crypto gains taxed at 15% when converted to fiat OR used to purchase goods/services. Mining and staking income also 15%. Must declare all crypto transactions. Losses offset gains. No crypto-specific exemptions. Treated same as other capital assets.

Selling real estate: 15% tax on profit (sale price minus purchase price minus selling costs). Unlike financial assets, real estate has EXEMPTIONS based on holding period and use. Without exemption: standard 15% on gains.

Own property 5+ years: sale potentially TAX-FREE. Applies to certain property types and situations. Major incentive for long-term real estate investment. Must meet specific conditions. Verify eligibility carefully.

Inherited property: cost basis typically fair market value at inheritance date. Subsequent sale taxed on gains from that basis. Inheritance itself not subject to inheritance tax for first-line heirs (no inheritance tax for children, spouse). Encourages intergenerational wealth transfer.