Hungary

Tax residency

Under Section 3(2) of the Hungarian Personal Income Tax Act (Act CXVII of 1995), an individual may be treated as a Hungarian tax resident under one of several statutory categories. National Tax and Customs Administration (NAV) provides detailed guidance on the domestic rules and their application.

For individuals not covered by the preceding categories, the domestic residence criteria are applied in the following sequence:

Thus, for individuals not covered by the specific statutory categories above, the domestic residence criteria are applied sequentially rather than as independent alternative tests.

• Hungarian citizenship: a Hungarian citizen is generally treated as a Hungarian tax resident. The exception applies to a dual citizen who has no registered place of residence in Hungary. NAV notes that Hungarian citizens may remain Hungarian tax residents under Hungarian domestic law even when they live and work abroad for several years. Where both states treat the individual as resident, the applicable double-tax treaty determines the individual’s treaty residence.
• 183-day presence for persons exercising free-movement rights: a person who exercises the right of free movement and residence in Hungary for at least 183 days in a calendar year is treated as a Hungarian tax resident. NAV states that this category applies primarily to EU/EEA citizens.
• Long-term residence entitlement / statelessness: a person with the long-term residence entitlement covered by the applicable Hungarian rules, as well as a stateless person, falls within a separate statutory category of Hungarian tax residents.
• Permanent home (állandó lakóhely): the individual is Hungarian tax resident if their only permanent home is in Hungary. NAV describes a permanent home as a place where the individual has arranged for long-term residence and actually lives. A temporary longer-term stay abroad does not necessarily change the permanent home.
• Centre of vital interests (létérdekek központja): if the individual has a permanent home in Hungary and in another state, the centre of vital interests is considered. This is the state with which the individual has the closest personal, family and economic connections.
• Habitual abode (szokásos tartózkodási hely): if the centre of vital interests cannot be determined under the preceding criterion, Hungary is the relevant state if the individual’s habitual abode is there. NAV describes habitual abode as the state where the individual stays more frequently and for longer periods. Where the pattern of life remains unchanged, the assessment may need to cover a period longer than one calendar year, including several years.

Day counting

• Hungarian citizenship: this is not a day-count test. A Hungarian citizen may remain a Hungarian tax resident under domestic law even while living and working abroad for several years.
• 183-day presence: the test is measured cumulatively within the calendar year and applies to a person exercising the right of free movement and residence in Hungary. The statutory provision does not specify a separate entry-day / exit-day counting rule. For tracking purposes, a conservative approach is to count both the entry day and the exit day as days of presence.
• Permanent home (állandó lakóhely): no fixed day-count threshold applies. The relevant issue is whether the individual has arranged for long-term residence and actually lives there. A temporary longer-term stay abroad does not necessarily change the Hungarian permanent home.
• Centre of vital interests (létérdekek központja): no fixed day-count threshold applies. The relevant personal, family and economic connections are assessed together. NAV notes that personal ties may outweigh economic ties in some circumstances, for example where a person works abroad but regularly returns to their family in Hungary and supports them financially.
• Habitual abode (szokásos tartózkodási hely): no fixed day-count threshold is prescribed. NAV describes it as the state where the individual stays more frequently and for longer periods. Where a regular pattern continues unchanged, the comparison may need to cover more than one year and potentially several years.

Tax consequences

The Hungarian tax year is a calendar year. Hungarian tax residents are generally subject to Hungarian tax on income from Hungary and abroad, while foreign-resident individuals are generally not subject to Hungarian tax on foreign-source income, subject to the applicable treaty and Hungarian domestic rules.

Migration / EU residence

EU/EEA nationals and Swiss citizens may reside in Hungary under the applicable free-movement and residence arrangements. EEA nationals exercising a right of residence exceeding three months must comply with the applicable registration requirements. Third-country nationals generally require the applicable visa or residence authorisation for longer stays. Immigration residence status or tax registration does not, by itself, determine Hungarian tax residency.

Orientation references

• Hungarian Personal Income Tax Act (Act CXVII of 1995), Section 3(2), statutory categories of Hungarian tax residence
• National Tax and Customs Administration (NAV), Personal taxation of income from abroad (published 11 February 2025) - detailed guidance on Hungarian domestic tax residence, the sequence of residence criteria, treaty residence and changes of residence during the tax year
• Hungarian immigration / EU residence framework