Tax
A 15% flat income tax, 9% corporate tax and 27% VAT
Personal income tax is a single 15% rate with substantial family credits. Corporate tax is 9%, the lowest in the EU, while the standard VAT rate of 27% is the highest, and local business tax adds up to 2% of adjusted turnover.
Key rules
- Personal income tax is 15% on all consolidated income, with no progressive band.
- Corporate income tax is 9%, supplemented by local business tax of up to 2%.
- Standard VAT is 27%, with reduced rates of 18% and 5%.
- Mothers of four or more children are exempt from personal income tax for life.
Governing law
- Act CXVII of 1995 on personal income tax (1995)
- Act LXXXI of 1996 on corporate tax (1996)
- Act CXXVII of 2007 on value added tax (2007)
- Act CL of 2017 on tax administration (2017)
In practice
NAV pre-fills the annual return by 15 March and it becomes final on 20 May if untouched, which silently forfeits family and first-marriage credits you never claimed.