Determining tax residency in Hungary is a key issue for Hungarian citizens living abroad, EEA nationals settling in Hungary, third-country nationals and anyone who has personal, family or economic ties to the country. Tax residency influences whether worldwide income is taxable in Hungary, whether someone must pay social security contributions, and how double taxation treaties allocate taxing rights.
Hungarian law defines residency through two main pieces of legislation:
Although these rules often overlap, they do not always lead to the same result. Someone may be considered resident under the PIT Act while not resident under the Social Security Act, or the other way around. Understanding both frameworks is therefore essential.
Understanding how tax residency works in Hungary helps clarify the logic behind the detailed comparison table that follows. The rules under the PIT Act and the Social Security Act do not always overlap, and individuals may be classified differently depending on which law applies to them.
This section summarises the key concepts that appear in Hungarian legislation and in international tax practice, including the 183-day rule, permanent home, centre of vital interests and habitual abode. These play an essential role in determining whether someone qualifies as a Hungarian tax resident.
These tests often determine residency in cross-border situations:
Registration requirements and the address card have significant impact on residency under the Tbj., whereas under the PIT Act days spent in Hungary and personal ties are more decisive.
Long-term residence status is a key factor, except in specific cases involving minors or when the 183-day threshold is not met.
Registered domicile may trigger residency for dual citizens, and special rules apply to refugees, stateless persons and individuals with subsidiary protection.
The following table summarises the key residency categories under both the PIT Act and the Social Security Act. It presents the legal definitions in a clear side by side structure to highlight how the two systems differ, where they overlap and which criteria matter in each case. This comparison shows how the concepts described above, such as permanent home, centre of vital interests, habitual abode, the 183 day rule and registered domicile, work in practice when determining an individual’s status under Hungarian law.
Tax residency under the PIT Act (Szja tv. 3. § 2.3. pont) | Tax residency under the Social Security Act (Tbj. 4. § 1 pont) | Notes |
Hungarian citizen | A Hungarian citizen with a registered domicile in Hungary under Act LXVI of 1992 on the Registration of Citizens’ Personal Data and Addresses. | A Hungarian citizen generally does not lose Hungarian tax residency under domestic rules. However, tax residency may change under a double tax treaty. A “permanent home” is a home where the individual is settled for long-term residence and actually lives. A temporary long-term stay abroad does not change the permanent home. Under the Tbj., the registered domicile is decisive. This is especially important when the Hungarian citizen lives in a non–treaty country. |
(except if the individual is simultaneously also a citizen of another state and has no registered domicile or place of stay in Hungary under the relevant act) |
| For dual citizens, the registered domicile is even more important. Dual citizens who do not wish to be considered Hungarian residents should deregister their Hungarian address.
Residence: the residence as defined by the Act on the Registration of Citizens’ Personal Data and Addresses. |
a natural person who, under the Act on the Entry and Residence of Persons with the Right of Free Movement and Residence, exercises their right of free movement and their right to reside in Hungary for more than three months for at least 183 days in the given calendar year – counting the days of entry and exit as full days | a person subject to the Act on the Entry and Residence of Persons with the Right of Free Movement and Residence, who exercises the right of free movement and the right to reside in Hungary for more than three months, and who has a registered domicile in Hungary under the Act on the Registration of Citizens’ Personal Data and Addresses | For EEA nationals, a registration certificate must be obtained upon the first entry into Hungary if the stay exceeds 90 days. After the registration, the authority issues the address card, meaning that anyone staying in Hungary for more than 90 days will hold an address card, although it may also be obtained earlier. For PIT purposes, the individual qualifies as a resident only if they stay in Hungary for more than 183 days within the tax year – counting the days of entry and exit as full days – or even if they stay fewer than 183 days, provided that their only permanent home or their centre of vital interests is in Hungary.
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a person with long-term residence status under the Act on the General Rules for the Entry and Residence of Third-Country Nationals | holder of long-term residence status | holder of long-term residence status Section 74 of the Act on the General Rules for the Entry and Residence of Third-Country Nationals: (1) A third-country national is considered to hold long-term residence status if they: a) before the entry into force of this Act, had obtained: b) under this Act, have obtained: (2) A third-country national holding long-term residence status is entitled to the rights granted by law to residence-permit holders and – except for the case described in paragraph (3) – is authorised to reside in the territory of Hungary for an indefinite duration.
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except for a person holding long-term residence status under Section 83 (1) (e) of Act XC of 2023 on the General Rules for the Entry and Residence of Third-Country Nationals, provided that they spend fewer than 183 days in the territory of Hungary in any 12-month period – counting the days of entry and exit as full days |
| This exception applies to the minor child of a third-country national who holds long-term residence status or who has been recognised as a refugee. |
Stateless person | Stateless | Stateless: a person who is not recognised as a national by any state under its own law. |
| a person recognised as a refugee or as a beneficiary of subsidiary protection | A person may be recognised as a refugee if they have suffered persecution in their country of origin, or have a well-founded fear of such persecution, on grounds of race, religion, nationality, membership of a particular social group, or political opinion; if they are currently residing in Hungary; and if, based on their application for refugee status, the asylum authority has granted them international protection. A person may be granted subsidiary protection if they do not meet the criteria for recognition as a refugee, but face a real risk of suffering serious harm upon return to their country of origin, and are unable or, due to such risk, unwilling to seek the protection of that country.
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in addition to the above, a person whose only permanent home is in Hungary |
| It may occur that a foreign individual previously lived in rented accommodation abroad which ceased upon their move to Hungary, or that they rented out their own property abroad. |
the centre of vital interests is in Hungary, if the individual has no permanent home at all or has permanent homes both in Hungary and abroad |
| The centre of vital interests is the state with which the individual has the closest personal, family, and economic ties. |
the individual’s habitual abode is in Hungary if they have no permanent home at all, or have permanent homes both in Hungary and abroad, and their centre of vital interests cannot be determined |
| Habitual abode: an individual is considered to have their habitual abode in Hungary if, in the given calendar year – counting the days of entry and exit as full days – they have spent at least 183 days in Hungary (Art. 7 § 44). |
Tax residency plays a key role in determining how income is taxed, whether social security contributions apply, and how international rules interact with Hungarian law. Because the PIT Act and the Social Security Act use different criteria, it is important to look at all relevant circumstances. From days spent in the country to registered domicile, long-term residence status, permanent home and personal ties.
A clear understanding of these rules helps avoid double taxation, reduces administrative risks and supports individuals in complex international situations. Whether someone is an EEA national living in Hungary, a third-country national with long-term residence status, a dual citizen or a Hungarian returning home, the table above offers a straightforward overview of how residency is assessed under Hungarian legislation.
Understanding tax residency is essential for anyone living, working or investing in Hungary, especially in cross border situations where PIT and social security rules may overlap or point in different directions. If you are managing foreign employees, relocating talent, or navigating Hungarian immigration and compliance requirements, having clarity on residency status can prevent unnecessary tax exposure, social security issues or administrative complications.
Through Passway Hungary, we support individuals and companies with residency assessments, immigration procedures, payroll and HR compliance, and the practical steps needed to stay fully aligned with Hungarian tax and social security regulations.
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