In 2026, the draft PIT returns prepared by the Hungarian tax authority (NAV) will be available earlier than usual, already from 13 March. The review, modification and approval of the return for the 2025 tax year is possible until 20 May 2026.
The draft PIT return is prepared by NAV based on data provided by employers and other payers. Taxpayers with government portal access can view it on the e-PIT platform, while others can collect it in person at NAV customer service offices.
Those who earned income solely from a Hungarian employer or payer and have no other income generally have no further obligations: if they do not modify the draft PIT return, it automatically becomes their final tax return after the deadline.
Who is required to supplement the Hungarian draft PIT return?
The draft must be reviewed and supplemented by:
- sole entrepreneurs,
- agricultural primary producers,
- private individuals liable for VAT.
For these taxpayers, the draft does not automatically become the final return.
Modifications are also required if the income was derived from, for example:
- the sale of movable or real property,
- rental of real estate,
- foreign sources,
- another private individual,
- capital market transactions or crypto‑asset transactions.
Tax allowances and allocating tax
Supplementing the return may also be necessary if the taxpayer is entitled to a tax allowance that the employer did not take into account during the year or only did so partially. In the annual return, these allowances may be fully claimed. Examples include:
- family allowance,
- personal allowance,
- allowance for first married couples, and
- allowances for mothers with two, three, four or more children.
In the tax return, taxpayers may allocate 1% + 1% of their tax to a civil organisation and a church, or to a designated budgetary allocation.
If a tax refund is due, providing a bank account number speeds up payment. It is also advisable to review the tax account before finalising the return.
Income from the sale or rental of movable and immovable property
If in 2025 a taxpayer rented out real estate in Hungary or sold real estate or higher‑value movables (such as a car), the Hungarian draft PIT return must be supplemented.
For the sale of movable property, the following tax obligations apply:
- For occasional sales, 15% personal income tax is payable on the part of the income exceeding HUF 200,000.
- For regular trading, the income qualifies as income from self‑employment, subject to 15% personal income tax and 13% social contribution tax.
For real estate sales, taxable income arises if the sale occurs within five years of acquisition and results in a profit.
For renting out real estate, taxpayers may still choose their cost accounting method at year‑end: instead of the 10% cost flat‑rate, they may apply itemised cost accounting retrospectively.
What should taxpayers with foreign investments or foreign employment consider?
Interest, dividends or capital gains earned on foreign bank accounts or through foreign investment service providers generally require supplementing the draft PIT return. Under international data exchange frameworks (CRS and DAC2), NAV receives information from more than hundred countries regarding the financial accounts of Hungarian taxpayers. Any discrepancy may trigger a supportive procedure, during which the taxpayer may correct the return by self‑revision.
It is important to note that foreign institutions often report gross revenue, whereas under Hungarian rules the tax base must be calculated after deducting expenses, which may lead to differences.
Treatment of reported capital market and crypto‑asset transactions
Income determined by Hungarian investment service providers usually appears in the draft, but taxpayers may include additional costs based on their own records. It is useful to know that the tax equalisation mechanism allows offsetting profits and losses.
For crypto asset transactions, income must be declared when the crypto asset exits the “crypto world” (i.e. when exchanged into legal tender, securities or other assets). From 2025 onwards, a favourable change allows taxpayers to apply losses declared – but not yet used – in any previous year when performing tax equalisation.
However, taxpayers must keep detailed records of their crypto transactions and any losses accounted for.
From next year, NAV will also have visibility over foreign crypto income!
Under new OECD and EU rules (CARF and DAC8), crypto‑service providers will report data on clients’ transactions and tax residency. The first international data exchange is expected in 2027 regarding the tax year 2026. The aim of the regulation is to increase transparency around crypto‑income, so proper reporting and documentation remain particularly important for investors.
Although the introduction of the e‑PIT system ten years ago significantly simplified the personal income tax filing process in Hungary compared to earlier periods, there are still numerous types of income that taxpayers must add to the Hungarian draft PIT return prepared by NAV. If you need expert support for the personal income tax return of your foreign employees, the tax consulting team of WTS Klient in Hungary is ready to assist you.
This article provides general information and does not constitute advice.
