Hungary's Crypto Tax Framework: Key Features and Updates

Hungary's cryptocurrency tax framework is designed to be relatively straightforward and consistent with EU regulations.

The country applies a flat 15% tax rate on individual realized gains, which means that taxpayers pay this rate only when they convert their cryptocurrencies into fiat currency. This rule does not apply to crypto-to-crypto trades, as exchanging one cryptocurrency for another is not considered a taxable event in Hungary.

Loss offsetting is also available, allowing individuals to deduct losses from their gains within the same tax year or carry them forward indefinitely. To calculate cost basis accurately, taxpayers can use standard accounting methods such as FIFO (First-In, First-Out).

The National Tax and Customs Administration (NAV) requires taxpayers to declare their cryptocurrency gains in their annual personal income tax return, with a deadline for filing set at May 20 of the year following the transactions. This means that trades made in 2025 must be reported by May 20, 2026.

The DAC8 directive will take effect in 2026, requiring international exchanges to automatically report user transaction data to local tax authorities, including the NAV. This change aims to increase government tracking and verification of crypto activity.