Hungary Capital Gains Tax Guide 2026

Overview — Capital Gains Taxation in Hungary

Capital gains in Hungary are treated as part of the individual's overall income and taxed at the flat 15% personal income tax rate (SZJA). The tax applies to gains from the sale of securities (shares, bonds, investment fund units), real estate, and other capital assets. There is no separate capital gains tax — gains are integrated into the SZJA system. Legal entities (companies) pay corporate income tax at 9% on capital gains as part of their ordinary business income.

Capital Gains on Securities — 15%

Gains from the sale of securities (shares, bonds, ETFs, investment fund units) are taxed at 15% SZJA. Key rules:

• Taxable gain: Sale proceeds minus acquisition cost (cost basis) and transaction costs (brokerage fees, exchange commissions)
• No short-term vs long-term distinction: The 15% rate applies regardless of holding period for securities
• Loss offset: Capital losses on securities can be offset against capital gains from securities in the same tax year. Unused losses can be carried forward for up to 2 years
• Foreign exchange gains: FX gains on the sale of foreign-currency securities are also taxed at 15%

Brokers and banks in Hungary generally act as withholding agents, deducting the 15% tax at source on securities transactions. Taxpayers may still need to report gains on their annual tax return.

Exemption for Listed Shares Held Over 5 Years

Gains from the sale of shares listed on a recognised stock exchange (including the Budapest Stock Exchange) may be exempt from SZJA if the shares were held for more than 5 years. This exemption applies to gains arising after the 5-year holding period has elapsed. The exemption does not apply to unlisted shares or shares in controlled foreign companies. This rule makes long-term equity investment in listed Hungarian companies particularly tax-efficient.

Capital Gains on Real Estate — 15% with Taper

Gains from the sale of real estate are also taxed at 15%, but the taxable gain is reduced based on the holding period:

• 0-5 years: 100% of gain taxable
• 5-10 years: 60% of gain taxable
• 10-15 years: 30% of gain taxable
• 15+ years: 0% of gain taxable (fully exempt)

This taper effectively encourages long-term property holding. Primary residence sales may also be exempt if proceeds are reinvested in a new primary residence within 12 months.

Gains from Business Assets

Capital gains realised by businesses on the sale of business assets (machinery, equipment, business premises) are included in ordinary business income and taxed at the corporate income tax rate of 9% (for companies) or the personal income tax rate (for sole proprietors). Gains from the sale of significant shareholdings (10%+) held for more than 1 year may qualify for the participation exemption (100% tax-free) under corporate tax rules.

Cryptocurrency Gains

Gains from cryptocurrency trading are classified as "income from other activities" and taxed at the flat 15% SZJA rate. Crypto mining income is also taxable at 15%. There is no specific crypto tax regime — standard capital gains rules apply. Social contribution tax (szocho) of 13% may also apply to crypto gains depending on the volume and frequency of trading activity. The NAV has been increasingly active in requesting crypto transaction data from exchanges.

Reporting and Payment

Capital gains must be reported on the annual personal income tax return (SZJA-bevallás) due by 20 May of the following year. When tax is withheld at source by a broker, the individual generally does not need to make a separate payment but must still report the gain. For real estate gains, the seller must calculate the gain and pay the tax directly to NAV. Late payment interest accrues at the central bank base rate plus 5%.

FAQs

Are capital gains taxed differently for non-residents?

Non-residents are generally subject to the same 15% SZJA rate on Hungarian-source capital gains (e.g., sale of Hungarian real estate or shares in Hungarian companies). Double tax treaties may provide relief or exemption.

Can I offset capital losses from one year against gains from a future year?

Yes, unused capital losses on securities can be carried forward for up to 2 years and offset against future capital gains from securities.

Do I need to pay social contribution tax (szocho) on capital gains?

Generally, no. Capital gains from securities trading are subject only to 15% SZJA and not to the 13% szocho, provided the gains are not classified as business income. Real estate gains are also not subject to szocho unless the seller is a professional property developer.

Disclaimer

This guide provides general information about Hungarian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Hungarian tax advisor (adótanácsadó) or NAV directly for advice specific to your situation. InvestmentKit does not provide tax advice.