2026 brings important updates to Hungarian tax legislation. Here's a recap of the main changes impacting KFTs and Italian entrepreneurs operating in Hungary.
9% Flat Tax: Confirmed
The 9% CIT (Corporate Income Tax) rate is confirmed for 2026. No changes are expected from the Orbán government, which maintains its policy of attracting foreign investment with the lowest taxation in the EU.
HIPA — Local Business Tax
The maximum HIPA (Helyi Iparűzési Adó) rate remains at 2% of net turnover. Some Budapest municipalities have confirmed relief for startups and innovative SMEs. Check with your municipality of registration.
UBO Register — New Update Obligations
From January 1, 2026, it is mandatory to update the UBO (Ultimate Beneficial Owner) register within 15 days of any corporate change. Penalties up to HUF 500,000 for non-compliance.
E-invoicing — Obligation Extended
The obligation to transmit data to the NAV's RTIR (Real Time Invoice Reporting) system will extend to B2C transactions over HUF 100,000 in 2026. KFTs must ensure their accounting software is up to date.
Transfer Pricing — New Thresholds
From 2026, KFTs with intercompany transactions exceeding HUF 50 million/year must prepare full transfer pricing documentation. This threshold is lower than in the past, meaning more companies are now subject to the obligation.
What to do now
If you have an active KFT, check with your Hungarian accountant for compliance with these updates. If you are considering opening a KFT, now is the right time: Hungarian taxation remains the most competitive in the EU.
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