The Expat’s Guide to Hungary’s Flat-Rate Taxation (Átalányadózás)

Hungarian flag waving in the foreground with Liberty Bridge (Szabadság híd) and the Danube River in the background at sunset in Budapest.

1. What Is Flat-Rate Taxation (Átalányadózás)? In essence, átalányadózás is a simplified personal income tax regime designed for individual entrepreneurs in Hungary. Instead of tracking and documenting every business expense (which can be time-consuming and requires detailed bookkeeping), you apply a fixed “deemed cost” percentage to your revenue. Why expats love it: If you’re comparing … Read more

Hungary’s KATA Tax System: A Complete Guide for Small Taxpayers

Female small business owner working at her desk, writing on a package.

What is KATA? KATA is a simplified, flat-rate tax system that allows eligible small entrepreneurs in Hungary to pay a fixed monthly amount instead of dealing with multiple tax obligations separately. It’s designed to simplify administration and reduce the tax burden for small business owners—but comes with strict limitations on who can use it and … Read more