Apartaments Merola | Double Tax Agreement Hungary
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Double Tax Agreement Hungary

Double Tax Agreement Hungary

Hungary has a double tax agreement with many countries all over the world. If you are looking to establish a business in Hungary or investing in the country, it’s important to know how the double tax agreement works and how it can affect your business.

What is a Double Tax Agreement?

A double tax agreement is a treaty between two countries that aims to avoid double taxation for residents and companies of both countries. The purpose of the agreement is to ensure that income and gains are not taxed twice by both countries.

Hungary has signed double tax agreements with more than 80 countries all over the world, including the United States, the United Kingdom, Germany, and China. The agreements are aimed at protecting investors and facilitating trade relations between Hungary and other countries.

How Does the Double Tax Agreement Affect Business?

As a business owner or investor in Hungary, the double tax agreement can have a significant impact on your finances. The agreement generally applies to income from employment, income from a business, income from immovable property and dividends, among others.

If you are a resident of one country and have income and gains generated in another country, the double tax agreement ensures that you are not taxed twice. The tax paid in the other country is credited or offset against the tax payable in your country of residence.

For instance, if you are a US resident operating a business in Hungary, your business income will be taxed in Hungary. However, you will not be taxed again in the US on the same income as the tax already paid in Hungary is credited against the US tax liability.

The double tax agreement is designed to encourage foreign investment and protect investors from being overtaxed. It provides businesses with certainty and clarity on the tax laws and regulations in Hungary.

How to Benefit from the Double Tax Agreement in Hungary

To fully benefit from the double tax agreement in Hungary, it’s important to seek professional advice from a tax expert. They will help you understand the tax laws and regulations in Hungary and ensure compliance with the rules.

Additionally, maintaining accurate records and filing tax returns in compliance with tax requirements is important to avoid disputes with the tax authorities. It’s also essential to keep up-to-date with the changes to tax laws and regulations as it may impact your business operations.


The double tax agreement in Hungary is a crucial aspect of doing business in the country. It ensures that businesses and investors are not double-taxed and provides certainty and clarity on the tax laws and regulations in Hungary. Seek professional advice and maintain compliance with tax laws to fully benefit from the agreement and avoid disputes with the tax authorities.

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