Accounting Requirements for a Hungarian Company: 2026 Guide for Foreign Owners
Once your Hungarian company is registered, the real work is staying compliant. A Hungarian Kft. (private limited company) runs on double-entry bookkeeping, files VAT monthly or quarterly, pays 9% corporate tax — the lowest headline rate in the EU — and must submit an annual report by 31 May. This guide walks foreign owners through the accounting requirements for a Hungarian company in 2026: what you must file, when, and what it realistically costs to keep clean.
You need a Hungarian accountant — this is not DIY
Hungarian companies keep double-entry books (kettős könyvvitel) under Act C of 2000 on Accounting, in Hungarian and in HUF. In practice, a foreign-owned Kft. cannot self-file the way a sole trader might elsewhere: the bookkeeping, the tax returns, and the annual report all run through the NAV and court-registry systems in Hungarian, on electronic forms.
That means engaging a Hungarian bookkeeper (könyvelő), and — for the annual report and tax positions — typically a qualified accountant. This is a feature, not a bug: it is what keeps the 9% corporate tax and the simple flat-rate system audit-safe. Our company formation service includes ongoing bookkeeping so this is handled from day one.
The core taxes your Kft. reports
| Tax | Rate | Filing frequency |
|---|---|---|
| Corporate income tax (TAO) | 9% flat | Annual return + advances during the year |
| VAT (ÁFA) | 27% standard (18% and 5% reduced) | Monthly or quarterly (annual for the smallest) |
| Local business tax (HIPA) | up to 2% of adjusted revenue | Annual return to the municipality + advances |
| Payroll: social contribution (szocho) | 13% on gross wages (employer) | Monthly ’08 return |
| Payroll: employee side (SZJA 15% + TB 18.5%) | withheld from gross | Monthly ’08 return |
| Innovation contribution | 0.3% (medium/large firms; SMEs exempt) | Advances + annual |
The 9% corporate rate is the headline reason foreigners choose Hungary — the detail is in our 9% corporate tax guide. Note that Hungary is not in the eurozone: your books and filings are in HUF, even if you invoice in EUR.
VAT: registration, frequency and real-time reporting
If your company makes taxable supplies, it needs a VAT number and files VAT returns. New companies typically start as monthly filers; the frequency then depends on turnover and tax position. A small-turnover company may elect the subjective exemption (alanyi adómentesség) up to HUF 20,000,000 of annual revenue for 2026 — but many foreign-owned companies want the VAT number anyway to reclaim input VAT and to trade across the EU. See our guide on VAT registration for foreign companies.
Hungary runs one of the strictest real-time invoice reporting regimes in Europe: business invoices must be reported to NAV’s Online Invoice system, in most cases automatically from your invoicing software at issue. Practically, this means your invoicing tool must be NAV-connected — a point to settle before you issue the first invoice.
The annual report: the once-a-year anchor
Every Hungarian company prepares and electronically files an annual report (éves beszámoló) — balance sheet, profit-and-loss statement and notes — with the company registry. For a company on the calendar year, the deadline is 31 May of the following year. The report is public: anyone can look it up, which is exactly why clean, timely filing protects your company’s standing with banks and partners.
Smaller companies usually qualify for a simplified annual report (egyszerűsített éves beszámoló), which reduces the disclosure burden. Your accountant confirms which format applies based on your balance-sheet total, revenue and headcount.
Do you need a statutory audit?
Most small foreign-owned Kft.s do not need an independent statutory audit. Hungarian rules generally exempt a company from mandatory audit where its two-year average net revenue and headcount stay under the statutory thresholds (broadly, revenue under roughly HUF 300 million and fewer than 50 employees on average) — but the exact limits and exceptions are set in the Accounting Act and can change, so confirm your position with your accountant each year. Certain company types and regulated activities are audited regardless of size.
Whether or not you are audited, you must keep your accounting records for eight years (invoices, contracts, the general ledger and the annual report). Storage can be electronic, but the documents must remain accessible and readable — a point that matters when the owner and the records sit in different countries.
Related-party pricing for holding structures
If your Hungarian company transacts with a related foreign company — a common setup where a Kft. is owned by a parent abroad, or acts as a holding or IP company — those intercompany prices must be at arm’s length, and larger groups face transfer-pricing documentation obligations. This is exactly where the attractive 9% rate needs disciplined paperwork: the rate is low, but the pricing of intra-group loans, royalties and management fees is what a tax review looks at. If you are building a holding structure, plan the documentation from the start rather than retrofitting it.
A realistic compliance calendar
| When | Obligation |
|---|---|
| Monthly, by the 12th | Payroll ’08 return + withheld taxes (if you have employees) |
| Monthly/quarterly, by the 20th* | VAT return (2665) + payment; EU sales list (A60) |
| During the year | Corporate tax and HIPA advances |
| 31 May | Annual report + corporate tax return for the prior year |
*The 20th shifts to the next working day when it falls on a weekend or public holiday — for example, in August 2026 the monthly VAT deadline moves to the 24th because of the Szent István holiday weekend.
What it costs to stay compliant
There is no single fee, but foreign owners should budget for: monthly bookkeeping (scales with transaction volume and whether you have payroll), the annual report and corporate tax return, and NAV-connected invoicing software. Employing staff adds monthly payroll runs — the full employer-cost math is in our employer costs in Hungary guide. A dormant holding company costs far less to run than an active trading company with staff and cross-border VAT.
Two practical points that trip up newcomers: you still need a registered office (székhely) where official mail is received and documents are kept — see our registered office guide — and someone with a valid Hungarian e-identity must be able to log in to file. Both are easy to arrange, but neither is optional.
Your first 30 days: an accounting setup checklist
Getting the foundations right at the start prevents expensive clean-ups later:
- Appoint a Hungarian bookkeeper and agree the monthly scope (bookkeeping, VAT, payroll, annual report).
- Choose NAV-connected invoicing software before you issue invoice number one, so real-time reporting works automatically.
- Confirm your VAT status — monthly filing, and whether the exemption fits or you register fully to reclaim input VAT.
- Register for the company’s Cégkapu (official e-mailbox) and set up who files on the company’s behalf.
- Set the compliance calendar — the monthly ’08 and VAT dates, and the 31 May annual report — with reminders that account for holiday shifts.
- Decide the money-out plan — salary vs. dividend — so payroll and corporate tax are modelled from day one, not improvised at year-end.
None of this requires you to be in Hungary, but all of it needs a local partner who files in Hungarian and watches the calendar for you.
FAQ
Can I do the accounting myself from abroad? In practice, no. Double-entry books, Hungarian-language e-filing and the annual report require a Hungarian bookkeeper/accountant.
Do I have to file VAT monthly? New companies typically start monthly; the frequency then follows turnover and tax position. Very small companies may file quarterly or elect the HUF 20,000,000 exemption.
When is the annual report due? By 31 May for a company on the calendar year, filed electronically with the company registry — and it is publicly accessible.
Is 9% corporate tax really the whole picture? The corporate rate is 9%, but budget also for local business tax (up to 2%), payroll taxes if you hire, and VAT compliance. Total effective burden is still among the lowest in the EU.
Updated: 2026-07-23 · Tax year 2026. Figures reflect Hungarian rules current at publication; always confirm your company’s specific filing frequency and thresholds with your accountant.
Planning a Hungarian company, or already running one and want the compliance handled? Our company formation and bookkeeping service covers the whole calendar so nothing slips.