If your company operates in Hungary or is considering relocating your business to Hungary, staying ahead of regulatory and tax developments is essential. From 1 July 2025, several major changes take effect in Hungarian tax law, including crypto asset regulation, transfer pricing, electronic invoicing, and green investment incentives.
Here’s a business-focused breakdown of the changes—and how they could impact your expansion or relocation plans:
🔗 1. Crypto Asset Taxation: A Unified EU Framework
Hungary is aligning with the EU’s MiCA Regulation (Markets in Crypto-Assets). Act VII of 2024 introduces:
- Mandatory licensing for crypto service providers in Hungary.
- Clear tax rules for individuals and entities dealing with digital assets.
- Stronger legal certainty for fintech firms and blockchain projects.
📍 Tip: If you’re in fintech or digital finance, this is the ideal time to establish or relocate to a regulated EU market like Hungary.
💼 2. Stricter Transfer Pricing Rules for Multinationals
Amendments to Act LXXXI of 1996 (Corporate Tax) introduce tighter documentation standards aligned with OECD BEPS and EU guidelines. Penalties for incomplete records are steeper under the 2017 Tax Procedure Act.
📍 Tip: If you operate a regional HQ or holding structure, review intercompany pricing now to stay compliant and avoid costly fines.
💻 3. Mandatory E-Invoicing and Digital Archiving
All businesses must switch to electronic invoicing by July 1, 2025. Real-time invoice data must be submitted through the NAV Online Invoice system.
📍 Tip: If you’re relocating to Hungary, integrate local invoicing compliance into your ERP and accounting systems during setup.
🌿 4. Green VAT Adjustments and E-Commerce Reform
VAT rate changes apply to digital services and green technologies, following updates to the EU VAT Directive. Rules for triangular transactions and online sales are also revised.
📍 Tip: Companies in renewables or e-commerce should evaluate pricing and supply chain structures to optimize tax efficiency.
🏢 5. Corporate Tax Incentives for Green Investments
New tax credits under Sections 22/E–22/G of the Corporate Tax Act reward sustainable and digital investments.
📍 Tip: Businesses relocating to Hungary may benefit from significant tax deductions when setting up energy-efficient infrastructure.
✅ Why It Matters for Business Relocation
Hungary offers a strategic EU location, skilled workforce, and increasingly business-friendly tax incentives, especially for companies embracing digitalization and sustainability. These 2025 changes reflect Hungary’s ambition to be a leading destination for modern, compliant, and growth-focused enterprises.
🚀 Ready to Move Your Business to Hungary?
At Westbridge Consulting, we help companies relocate, expand, and succeed in Hungary through expert legal, tax, and operational advisory.
📞 Schedule a consultation with our Budapest team
📧 Email: budapest@westbridgeconsulting.eu
💬 WhatsApp: +36 30 938 0892
🌐 Website: www.westbridgeconsulting.eu