Hungary: individual tax residence and scope

Nationality and status tests

Hungarian citizens are residents under domestic law, except dual citizens with neither a registered Hungarian domicile nor registered place of stay; other residence tests can still apply. Third-country nationals with long-term residence rights and stateless individuals are also statutory resident categories, subject to the Act's specific exceptions.

A cohort-specific 183-day test

People exercising free-movement rights for stays exceeding three months are domestic residents if present for at least 183 days in the calendar year. Arrival and departure days each count as whole days. This is not a universal day-only test for every individual.

Home and personal ties

For other individuals, residence follows a sole permanent home in Hungary; with homes in several countries or none, the centre of vital interests; and, if that centre cannot be determined, habitual abode. Closest personal, family and economic ties matter. A merely temporary absence does not change a permanent home.

Worldwide and source-based liability

Residents are generally taxed on worldwide income. Non-residents are liable only for Hungarian-source income or income otherwise taxable in Hungary under a treaty or reciprocity. Source depends on the income category, including property location and where employment is normally performed, not simply the receiving bank account.

Treaties and foreign-tax relief

Applicable treaties prevail over conflicting domestic provisions. Foreign-source income in the consolidated tax base can qualify for a limited foreign-income-tax credit under section 32 unless the treaty provides otherwise; refundable foreign tax is excluded. Neither a foreign payment nor tax paid abroad establishes automatic Hungarian exemption.