Hungary - a hidden gem for crypto traders?

[gnut]

• 15% flat tax on crypto-fiat
• No tax on crypto-crypto
• 9% CIT
• 15% flat income tax
• 15% CGT

The new rule is applicable in cases of trading and mining any type of cryptocurrencies and there is no set maximum threshold, for which the flat tax can be applied. However, the individual must be resident in Hungary from a tax perspective to declare the tax with the low tax rate. The new rule is applicable for incomes incurred as of 2022, however, it can also be used for incomes incurred earlier than 2022 due to the governmental purpose to whiten incomes from crypto sources.

The taxation point starts from the moment when the cryptocurrency is converted into FIAT currency. Crypto to crypto changes are not subject to tax.

The tax rate applicable is only 15%, and besides the low rate of personal income tax from cryptocurrencies, there is no social contribution or further contribution. Moreover, there is no need to establish a sole entrepreneurship to declare crypto income in accordance with the new rules.

As mentioned above, the new flat tax rate is very favourable within the EU, which might motivate many European citizens to become a resident in Hungary. It must be checked from several aspects and whether a foreign individual can be identified as a Hungarian resident. Once the conditions are met, and a person is considered a tax resident in Hungary, the 15% flat tax can be applied for all income from cryptocurrencies.

Source: Hungary introduces a favourable 15% flat tax on cryptocurrency incomes for private individuals

 

[JosephLL]

Will they treat RUB as fiat , since now it has a gold floor ?

 

[Sols]

There have been many discussions about Hungary before, although not specifically from a crypto perspective. A few members have even formed companies there, and I don't think any of them have been particularly happy. Outside of the forum, I have had many discussions about Hungary and investigations. In nearly every single case, a different jurisdiction has been chosen.

Hungary is a bureaucratic nightmare with equal parts corruption, incompetence, and old fashioned procedures in the government. The English language press releases and sales pitches you can find online have very little in common with reality once you dive into it.

Don't go to Hungary expecting things to work nearly as smoothly as more popular jurisdictions.

 

[JohnnyDoe]

A famous Italian pornstar is very happy in Hungary or at least he must find it better than Italy

 

[uplana]

Don't go to Hungary expecting things to work nearly as smoothly as more popular jurisdictions.

Can only agree, maybe it is the fact of such that make it interesting for people hiding from something.

 

[zaybxc]

Any update on this?
On paper Hungary looks good for crypto (trade/invest, NFT, mining, staking): 15% PIT only when exchanging crypto to FIAT currency or crypto to good/service.

Hungary is a bureaucratic nightmare with equal parts corruption, incompetence, and old fashioned procedures in the government.

Transparency International ranks Hungary the most corrupted country in the EU.