Becoming an egyéni vállalkozó in Hungary: free NAV registration, the HUF 20,000,000 VAT exemption, and the átalányadó
A Hungarian freelancer registers a sole trader electronically and free through NAV. The alanyi adómentesség VAT exemption rose to HUF 20,000,000 for 2026, PIT is a flat 15%, and the átalányadó flat-rate regime taxes revenue minus a deemed-expense ratio.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Setting up as an egyéni vállalkozó (sole trader) in Hungary starts with a registration that is both electronic and free, then a series of choices about VAT status and how your profit is taxed.
Registration through NAV
You register the sole trader electronically and free of charge through NAV, the tax authority, via its online business-assistant portal. There is no incorporation fee and no notary — the enterprise is created once the electronic form is submitted. From there you slot into the tax and social-contribution regimes below.
The HUF 20,000,000 VAT exemption
The alanyi adómentesség (subjective VAT exemption) threshold rose to HUF 20,000,000 for 2026 (about €51,000), up from HUF 18,000,000 in 2025. Under the exemption you charge no VAT and stay out of periodic VAT filings; above the line you register and charge at the standard rate. Because the figure moves each year, confirm the current threshold with NAV before you rely on it.
Income tax and the átalányadó
Personal income tax is a flat 15%. Many freelancers use the átalányadó (flat-rate) regime, which taxes revenue minus a deemed-expense ratio — a presumed profit rather than tracked costs. The standard ratio rises from 40% to 45% in 2026, lowering the taxable base for typical activities.
KATA still exists but has been heavily restricted since September 2022: full-time sole traders only, invoicing only private individuals (no B2B), at HUF 50,000 per month with a HUF 18,000,000 per year cap.
Social contributions
Under the átalányadó you pay an 18.5% social contribution plus a 13% social contribution tax (szocho). From 2026 the szocho base moves to 100% of income, which raises the effective social cost — worth modelling before you commit to a regime.
General information about becoming an egyéni vállalkozó in Hungary, current as of the review date above, and not tax advice. Thresholds and rates change — confirm current figures with NAV or a qualified könyvelő.
Frequently asked questions
What is the VAT exemption threshold for a Hungarian sole trader in 2026?
The alanyi adómentesség (subjective VAT exemption) threshold rose to HUF 20,000,000 for 2026 (about €51,000), up from HUF 18,000,000 in 2025. Below it you may opt to charge no VAT; above it you register and charge VAT at the standard rate. Confirm the current figure with NAV before you rely on it, as thresholds change year to year.
How does the átalányadó flat-rate regime work?
The átalányadó taxes your revenue minus a deemed-expense ratio, so you are taxed on a presumed profit rather than tracked costs. The standard deemed-expense ratio rises from 40% to 45% in 2026. Flat 15% personal income tax applies to the resulting base, and social charges apply separately.