American Expats in Hungary

Updated on August 16, 2025.

Hungary & U.S. Tax Timeline: Critical Dates for Dual Filers

Managing dual tax obligations between Hungary and the United States requires careful attention to two distinct tax calendars. Understanding these timelines is crucial for maintaining compliance and avoiding penalties in both jurisdictions.

The Hungarian tax system operates on a pay-as-you-earn (PAYE) basis for employees, with employers withholding taxes monthly. Self-employed individuals and businesses must make quarterly advance payments based on the previous year's tax liability. This creates a continuous cycle of tax obligations that must be carefully managed alongside U.S. requirements. Hungarian tax authorities (NAV) are known for strict enforcement and automated compliance monitoring through extensive data sharing between government agencies.

Strategic Payment Planning to Avoid U.S. Penalties

The most critical aspect of dual tax compliance for U.S. expats in Hungary is understanding that the June 15 automatic extension applies only to filing, not to payment obligations. This distinction has significant financial implications that require proactive planning to avoid unnecessary interest and penalties.

To effectively manage this payment timing challenge, expats should implement a multi-pronged approach. First, conduct a preliminary tax calculation by early March using your Hungarian income documentation and estimated U.S. tax obligations. This projection doesn't need to be perfect but should provide a reasonable estimate of your U.S. tax liability. Consider working with a tax professional familiar with both systems to ensure accuracy in this crucial calculation. As an expat CPA firm, we can help you with these items.

Second, establish a tax reserve account specifically for U.S. obligations. Since Hungarian taxes are withheld monthly for employees or paid quarterly for self-employed individuals, you'll need separate liquidity for U.S. payments. Many expats find it helpful to set aside funds monthly, treating U.S. tax reserves as a fixed expense in their budget. This approach prevents the April 15 payment deadline from creating a cash flow crisis.

Third, leverage safe harbor provisions to minimize penalties. If you're unable to calculate your exact tax liability by April 15, you can avoid penalties by paying either 100% of your prior year's tax liability (110% if your prior year AGI exceeded $150,000) or 90% of the current year's tax. This safe harbor payment strategy provides protection while you finalize your actual tax calculations. As an expat CPA firm, we can help you with this.

For those with irregular income or significant Hungarian-source income, consider making quarterly estimated tax payments to the IRS. While Hungary handles tax through monthly withholdings or quarterly advances, the U.S. system may require quarterly payments if your withholding is insufficient. These payments are due April 15, June 15, September 15, and January 15, and help spread the tax burden throughout the year rather than facing a large payment in April.

Currency fluctuations between the Hungarian forint and dollar add another layer of complexity to payment planning. Since you'll likely earn income in forints but owe taxes in dollars, exchange rate movements can significantly impact your tax liability. Consider using the yearly average exchange rate for income reporting (as permitted by the IRS) to smooth out volatility, and monitor exchange rates when planning your April payment to optimize the conversion timing. As an expat CPA firm, we can help you with these items.

Hungary vs. U.S. Tax Systems: Direct Comparison

Understanding the fundamental differences between Hungarian and U.S. tax systems is essential for effective tax planning as an American expat. While both countries tax worldwide income for residents, their approaches to rates, deductions, and income classification vary significantly.

Hungary's 15% flat personal income tax rate is among the most competitive in Europe, applying uniformly regardless of income level. This compares favorably to U.S. federal rates ranging from 10% to 37%, though U.S. expats may benefit from the Foreign Earned Income Exclusion (FEIE) of $120,000 for 2023 and $126,500 for 2024. The simplicity of Hungary's flat tax system reduces compliance complexity but offers fewer deduction opportunities than the U.S. system.

One crucial difference lies in the treatment of social contributions. Hungary's combined 18.5% social contribution rate is higher than U.S. FICA taxes (15.3% combined), but provides universal healthcare, pension benefits, and unemployment insurance. The U.S.-Hungary totalization agreement prevents double social security taxation, allowing expats to remain in their home country's system under certain conditions.

The Hungarian Tax System Explained in Detail

The Hungarian tax system presents unique advantages for American expats, with its straightforward flat tax structure and business-friendly environment. Hungary's approach to taxation emphasizes simplicity and competitiveness, though understanding the nuances remains essential for optimization and compliance.

Understanding U.S. Income Classifications

Before diving into the Hungarian system, it's essential to understand how the United States classifies and taxes different types of income, as this provides the framework for comparison and planning strategies.

The Hungarian Income Tax Categories

Hungary's tax system is notably simpler than many European countries, with a unified 15% flat tax rate applying to most income types. This streamlined approach reduces complexity but requires understanding specific classifications and available benefits.

1. Employment Income (Munkaviszonyból származó jövedelem)

Employment income encompasses wages, salaries, bonuses, and employment benefits. Hungary's 15% flat tax applies to all employment income regardless of amount, with employers responsible for monthly withholding. Unlike progressive systems, high earners face the same rate as minimum wage workers, creating significant advantages for well-compensated professionals and executives relocating from high-tax jurisdictions.

Social insurance contributions add 18.5% to the tax burden, split between pension (10%), health insurance (7%), and unemployment (1.5%). These contributions are capped at certain levels, providing relief for high earners. The combined effective rate of 33.5% remains competitive compared to Western European countries, particularly when considering the comprehensive social benefits provided.

Tax-free benefits: Hungary offers numerous tax-free benefits including SZÉP cards (recreation cards) up to HUF 450,000 annually, meal vouchers up to HUF 8,000 per month, local transportation passes, and voluntary pension contributions up to specified limits. These benefits effectively increase net compensation without triggering additional tax liability.

2. Self-Employment and Business Income

Self-employed individuals and sole proprietors can choose between several tax regimes in Hungary. The standard regime applies 15% personal income tax plus social contributions, with full deduction of business expenses. The flat-rate tax regime (KATA) offers simplified taxation at HUF 50,000 monthly for service providers or HUF 75,000 for retailers, covering all tax and social contribution obligations up to HUF 12 million annual revenue.

The itemized lump-sum tax regime (ÁTALÁNY) allows certain professions to pay tax on deemed profit margins rather than actual income, significantly reducing tax burden for qualifying activities. Small business tax (KIVA) provides an alternative 10% tax rate for businesses with revenues under HUF 3 billion, replacing corporate income tax and social contributions with a single levy.

3. Investment Income

Hungary applies its 15% flat tax to most investment income, including dividends, interest, and capital gains. This unified treatment simplifies compliance and planning compared to countries with varying rates for different investment types. No additional social contributions apply to investment income, making the 15% rate the total tax burden.

Capital gains receive the same 15% treatment regardless of holding period, unlike the U.S. distinction between short and long-term gains. However, gains from selling shares in Hungarian companies may qualify for participation exemption if specific conditions are met. Losses can offset gains within the same year but cannot be carried forward, requiring careful timing of transactions.

4. Rental Income

Rental income from Hungarian real estate faces 15% tax on net income after deducting expenses. Alternatively, landlords can elect a 10% flat-rate cost deduction without documentation requirements. For residential rentals, no VAT applies, simplifying administration. Commercial rentals may trigger VAT obligations depending on the tenant and property use.

Foreign rental income received by Hungarian residents is taxable at 15%, with foreign tax credits available under treaty provisions. The U.S.-Hungary tax treaty prevents double taxation, though timing differences and documentation requirements demand careful attention.

5. Pension Income

Hungarian pension income faces 15% tax without social contributions, providing favorable treatment for retirees. Foreign pensions, including U.S. Social Security and private pensions, are taxable in Hungary for residents, though treaty provisions may provide relief. The U.S.-Hungary treaty allows exclusive U.S. taxation of government pensions for U.S. citizens, while private pensions face taxation in the residence country.

6. Other Income Categories

Hungary taxes various other income types at 15%, including royalties, prizes exceeding HUF 1 million, certain insurance payouts, and cryptocurrency gains. The broad application of the flat rate simplifies compliance but requires careful classification to identify available exemptions and deductions.

Special Tax Regimes for Businesses and Entrepreneurs

Hungary offers several attractive tax regimes designed to support business growth and attract foreign investment, particularly beneficial for American entrepreneurs and remote workers establishing European operations.

The 9% Corporate Tax Rate

Hungary's 9% corporate income tax rate stands as the lowest in the European Union, making it exceptionally attractive for business incorporation. This rate applies to all corporate profits regardless of amount, with no progressive scales or surcharges. Combined with extensive tax treaty networks and EU market access, Hungary provides an ideal platform for international business operations.

KATA Simplified Tax Regime

The KATA regime offers extraordinary simplicity for small businesses and freelancers. For a fixed monthly payment of HUF 50,000 (approximately $140), businesses cover all tax and social contribution obligations on revenues up to HUF 12 million annually. This represents an effective tax rate of just 5% at maximum revenue levels, making it ideal for consultants, IT professionals, and service providers. The regime eliminates complex accounting requirements, requiring only basic revenue tracking.

IP Box Regime

Hungary's intellectual property regime provides a reduced 5% tax rate on qualifying IP income, including patents, software copyrights, and know-how. This 50% reduction from the standard corporate rate makes Hungary attractive for technology companies and R&D operations. Combined with R&D incentives and EU funding opportunities, the IP box creates compelling advantages for innovation-focused businesses.

Regional Headquarters Incentives

Companies establishing regional headquarters in Hungary can access various incentives, including reduced social contribution rates, accelerated depreciation, and potential cash grants for job creation. These benefits particularly suit American companies seeking European expansion platforms, leveraging Hungary's central location and skilled workforce.

Hungarian Visa Options and Their Tax Implications

Hungary offers various visa categories for American citizens, each with distinct requirements, benefits, and tax implications. Understanding these options is crucial for optimizing your tax position while ensuring legal residence status.

Residency Bond Program (Currently Suspended)

Hungary's Residency Bond Program, which offered residency through government bond investment, remains suspended as of 2025. However, discussions about reintroducing a revised investment residency program continue. American investors should monitor developments, as any new program would likely offer favorable tax treatment similar to other EU investment visa schemes.

Self-Employment Visa

Entrepreneurs and freelancers can obtain self-employment visas by demonstrating business viability and financial self-sufficiency. Requirements include a detailed business plan, proof of accommodation, financial resources of at least €8,400 annually, and often client contracts or market research. This visa permits business operation and leads to permanent residency after three years of continuous residence.

The KATA regime offers exceptional tax benefits for visa holders, with effective rates as low as 5% for qualifying businesses. Alternatively, standard taxation at 15% flat rate remains highly competitive. Careful structuring optimizes benefits while maintaining U.S. tax compliance through foreign tax credits and treaty provisions.

Employment Visa and EU Blue Card

Hungary participates in the EU Blue Card program for highly skilled professionals, requiring a university degree or five years professional experience, employment contract with salary at least 1.5 times the national average (approximately €24,000 annually), and employer sponsorship. The Blue Card accelerates permanent residency to two years and provides family reunification rights.

Standard work permits require employer sponsorship through Hungary's simplified process, with no numerical quotas for most professions. Employment income faces 15% flat tax plus social contributions, totaling approximately 33.5% effective rate. This compares favorably to progressive rates in Western Europe while providing full social benefits.

Business Visitor Visa

The Business Visitor Visa suits investors and business owners managing Hungarian operations without local employment. This visa allows business meetings, contract negotiations, and oversight activities but prohibits Hungarian employment. Holders can maintain non-resident tax status if limiting presence to under 183 days, avoiding Hungarian taxation on foreign income.

Tax planning opportunities include timing Hungarian presence to maintain non-resident status, structuring business activities to avoid permanent establishment, and utilizing treaty provisions to minimize source taxation. This visa particularly benefits Americans maintaining primary business operations elsewhere while developing Hungarian ventures.

Student and Guest Researcher Visas

Hungary's renowned universities and research institutions attract American students and academics. Student visas permit part-time work (24 hours weekly) during studies, with full-time work allowed during breaks. Guest researcher visas provide similar rights with potential path to permanent residency.

Students and researchers benefit from various tax exemptions, including scholarships and research grants from qualifying sources. Employment income faces standard 15% taxation, though social contribution exemptions may apply for students under 25. These visas provide affordable European education while establishing potential long-term residence rights.

Hungary's Digital Nomad Visa: Rates and Benefits

Hungary introduced its Digital Nomad Visa (White Card) in 2024, joining the growing number of European countries attracting location-independent professionals. This visa addresses the unique needs of remote workers, offering legal residence with favorable tax treatment.

Eligibility Requirements

The Digital Nomad Visa requires proof of remote employment or self-employment with non-Hungarian entities, minimum monthly income of €2,000 (approximately $2,200), comprehensive health insurance covering Hungarian healthcare, and clean criminal record certification. Applicants must demonstrate accommodation arrangements and prove their work can be performed entirely remotely. The visa explicitly permits remote work for foreign employers while residing in Hungary.

Tax Treatment and Benefits

Digital nomads spending under 183 days in Hungary maintain non-resident status, avoiding Hungarian taxation on foreign income. This allows enjoying Hungary's lifestyle and low costs without triggering worldwide taxation. For those becoming residents, the 15% flat tax rate remains competitive, particularly with available foreign tax credits.

Strategic planning opportunities include timing arrival to maximize non-resident days, maintaining foreign business structures to optimize income classification, and utilizing treaty provisions to eliminate double taxation. Hungary's central European location facilitates travel throughout the Schengen area while maintaining Hungarian tax residence.

Practical Considerations

Banking services readily available to visa holders, with many banks offering English-language support in Budapest. Digital banking options like Revolut and Wise operate seamlessly in Hungary. However, U.S. citizens may face FATCA-related restrictions at some institutions, requiring strategic account selection.

Hungary's excellent digital infrastructure supports remote work, with widespread fiber internet and 5G coverage in major cities. Co-working spaces proliferate in Budapest, offering professional environments and networking opportunities. The vibrant expat community provides social connections and practical support for newcomers.

A Practical Filing Guide for U.S. Expats in Hungary

Successfully navigating dual tax obligations requires systematic approach, careful documentation, and strategic timing. This comprehensive guide walks through the practical steps for maintaining compliance in both jurisdictions while optimizing your tax position.

Step 1: Determine Your Residence Status

Tax residence determination forms the foundation of your filing obligations. Hungary considers you resident if you spend more than 183 days in Hungary during the calendar year, maintain permanent home in Hungary, or have your center of vital interests (family, economic ties) in Hungary. Registration with immigration authorities and obtaining an address card (lakcímkártya) creates presumption of residence.

U.S. citizens remain subject to U.S. taxation regardless of residence, but residence status affects available benefits. The Foreign Earned Income Exclusion requires either 330 days outside the U.S. (Physical Presence Test) or bona fide residence in Hungary (Bona Fide Residence Test). Treaty tie-breaker provisions resolve dual residence claims, typically favoring the country of permanent home, vital interests, or habitual abode.

Step 2: Gather Required Documentation

Comprehensive documentation ensures accurate reporting and supports tax positions. Essential documents include:

Income Documentation: Hungarian employment contracts and monthly pay slips, tax certificates from employers (M30 form), bank statements showing interest and dividends, business income records and invoices for self-employed, rental agreements and receipts, and pension distribution statements. Maintain records in both forints and dollars, documenting exchange rates used for conversion.

Deduction Support: Health insurance premiums and medical expenses, mortgage interest statements for Hungarian properties, charitable contribution receipts from qualifying organizations, education expenses for dependent children, and professional expense receipts if self-employed. Hungary requires official invoices (számla) with tax numbers for most deductible expenses.

Tax Payment Records: Hungarian tax payment confirmations, employer withholding certificates, U.S. estimated tax payment confirmations, foreign tax credit documentation, and social contribution payment records. These documents prove taxes paid for foreign tax credit claims and treaty benefit applications.

Step 3: Complete Hungarian Tax Filings

Hungarian tax returns vary by income type and taxpayer category. Most employees have taxes fully withheld by employers, eliminating filing requirements unless additional income exists. Self-employed individuals and those with non-employment income must file annual returns by May 20, with possible extension to November 20 for complex situations.

Key Hungarian filing considerations include:

The tax authority (NAV) provides pre-filled returns (eSZJA) for many taxpayers, requiring only verification and submission. This system leverages extensive data sharing between employers, banks, and government agencies. Foreign income must be self-reported and converted to forints using National Bank of Hungary exchange rates.

Hungary's online filing system (ÁNYK) requires Hungarian language proficiency or professional assistance. The Client Gate (Ügyfélkapu) portal provides secure access to tax accounts and enables electronic filing. Many expats engage Hungarian accountants (könyvelő) for compliance, with costs typically ranging from €500-1,500 annually for straightforward situations.

Step 4: Complete U.S. Tax Filings

U.S. expat tax returns require additional forms and calculations beyond standard domestic filings. Essential forms include:

Form 1040: Report worldwide income converted to dollars using IRS-approved exchange rates. Claim Foreign Earned Income Exclusion (Form 2555) or Foreign Tax Credit (Form 1116), but not both on the same income. Include all Hungarian income, even if tax-exempt under KATA or other special regimes.

Form 2555 (Foreign Earned Income Exclusion): Exclude up to $126,500 (2024) of foreign earned income if qualifying under physical presence or bona fide residence tests. Housing exclusion provides additional benefits for qualifying housing expenses exceeding base amounts. Budapest's relatively low housing costs may limit housing exclusion benefits compared to higher-cost locations.

Form 1116 (Foreign Tax Credit): Claim credits for Hungarian taxes paid on foreign-source income, subject to category limitations and sourcing rules. Hungary's 15% flat rate often generates sufficient credits to offset U.S. tax on foreign income. Excess credits carry back one year and forward ten years, providing planning flexibility.

Form 8938 (FATCA Reporting): Report foreign financial assets exceeding $200,000 (year-end) or $300,000 (any time) for single filers, doubled for joint filers. Include Hungarian bank accounts, investment accounts, pension funds, and business interests. Substantial penalties apply for non-compliance, making accurate reporting essential.

FBAR (FinCEN Form 114): Report foreign accounts exceeding $10,000 aggregate value at any point during the year. File electronically by April 15 with automatic extension to October 15. Include all Hungarian financial accounts, even business accounts and SZÉP cards if they meet the threshold.

Step 5: Optimize Tax Strategies

Strategic planning throughout the year optimizes your dual tax position:

Frequently Asked Questions for U.S. Expats in Hungary

Q: How does the U.S.-Hungary tax treaty prevent double taxation?

The treaty provides multiple mechanisms to prevent double taxation. First, it assigns primary taxing rights for different income types - employment income is generally taxable where the work is performed, while pensions (except government pensions) are taxable in the residence country. Second, both countries provide foreign tax credits for taxes paid to the other country. Third, the treaty includes tie-breaker rules to determine single tax residence when both countries claim residence. Fourth, it provides reduced withholding rates on dividends (15%), interest (0%), and royalties (0%), facilitating cross-border investment. The treaty's saving clause preserves U.S. rights to tax citizens regardless of residence, but foreign tax credits ensure single taxation.

Q: How does the KATA regime work for American freelancers?

KATA provides extraordinary tax efficiency for small businesses and freelancers. For HUF 50,000 monthly (approximately $140), you cover all Hungarian tax and social contribution obligations on revenues up to HUF 12 million annually. This represents an effective tax rate of just 5% at maximum revenue. No additional taxes apply, and accounting requirements are minimal - just track revenues. For U.S. tax purposes, you'll report actual income and can claim foreign tax credits for KATA payments. The regime particularly benefits IT consultants, creative professionals, and service providers. However, exceeding the revenue limit triggers harsh 40% taxation on excess amounts, requiring careful monitoring.

Q: What happens to my U.S. state tax obligations when I move to Hungary?

State tax obligations depend on your former state of residence and steps taken to establish non-residence. States like California, New York, and Virginia aggressively pursue former residents, requiring clear evidence of permanent departure. Key steps include obtaining Hungarian residence permit and address registration, closing state bank accounts and canceling state professional licenses, changing voter registration to overseas ballot, selling or renting state property (though ownership alone doesn't establish residence), and filing final state returns with part-year or non-resident status. Some states have no income tax (Florida, Texas, Nevada), making them attractive for maintaining U.S. ties. Others may continue taxing certain income (like state pensions) regardless of residence.

Q: How are Hungarian real estate investments taxed for U.S. expats?

Hungarian real estate faces multiple tax considerations. Rental income is taxed at 15% on net income after deducting expenses, or you can elect 10% deemed expenses without documentation. Property sales trigger 15% capital gains tax unless the property was your primary residence for at least one year in the five years before sale. Annual property tax varies by municipality but typically ranges from 0.5% to 3% of cadastral value. For U.S. tax purposes, rental income is reported on Schedule E with depreciation deductions allowed. Capital gains face U.S. tax with potential primary residence exclusion ($250,000/$500,000). Foreign tax credits apply for Hungarian taxes paid. Hungary's relatively low property prices and strong rental yields in Budapest create attractive investment opportunities.

Q: Should I choose the Foreign Earned Income Exclusion or Foreign Tax Credit?

For Hungary's 15% flat tax environment, the Foreign Tax Credit often provides better results than FEIE. Since Hungary's rate approximates lower U.S. brackets, FTC preserves eligibility for U.S. retirement contributions while providing credits that carry forward. FEIE works well for incomes under $126,500 if you don't need retirement account contributions. Many expats combine strategies - using FEIE for employment income and FTC for investment income. Consider that Hungary's social contributions aren't creditable for U.S. tax, making FEIE potentially more valuable for high earners with substantial social contribution obligations. Model both scenarios considering your specific income types and amounts.

Q: How does the U.S.-Hungary totalization agreement affect my social security?

The totalization agreement prevents double social security taxation and helps qualify for benefits in both countries. If temporarily assigned to Hungary (under 5 years), you can remain in the U.S. Social Security system with Certificate of Coverage. For longer assignments or local employment, you'll pay into Hungarian system. Contributions to either system count toward qualifying for benefits - you need 10 years (40 quarters) for U.S. benefits or 15 years for Hungarian pension. The agreement allows combining coverage periods to meet minimum requirements. Hungarian social contributions (18.5%) are higher than U.S. FICA (15.3%), but provide immediate healthcare access and comprehensive benefits. Strategic planning involves evaluating expected assignment duration and retirement benefit objectives.

Q: What are the implications of operating U.S. LLCs from Hungary?

U.S. LLCs face complex treatment under Hungarian tax law. Single-member LLCs, disregarded for U.S. tax purposes, may be treated as corporations in Hungary, creating potential double taxation. Hungarian tax authorities might assert that management from Hungary creates local tax obligations. Consider establishing Hungarian business structure (Kft. or Bt.) for local operations while maintaining U.S. LLC for American activities. The 9% Hungarian corporate tax rate makes local incorporation attractive for profitable businesses. Alternatively, the KATA regime might cover combined activities if revenue remains under HUF 12 million. Document management activities and board meetings carefully to support tax positions in both jurisdictions.

Q: How do I handle Hungary's 27% VAT as an American business owner?

Hungary's VAT rate is the EU's highest, requiring careful planning. Businesses exceeding HUF 12 million annual revenue must register for VAT. Registration enables reclaiming input VAT on business expenses but requires quarterly filing and compliance. For B2B services to EU customers, reverse charge mechanism shifts VAT obligation to customers. Services to non-EU customers (including U.S.) are zero-rated, providing competitive advantage. Digital services to EU consumers require VAT registration under MOSS/OSS system. Many American entrepreneurs use the KATA regime to avoid VAT obligations entirely, as KATA businesses cannot charge VAT or reclaim input VAT. Consider VAT implications when choosing business structure and pricing strategies.

Q: Can I use the Hungarian healthcare system, and how does it affect my taxes?

Hungarian residents access universal healthcare through social insurance contributions (7% of gross salary for employees). The system provides comprehensive coverage including doctor visits, hospital care, prescriptions, and emergency services. Quality varies between Budapest's modern facilities and rural areas. Many expats supplement with private insurance (€50-150 monthly) for faster service and English-speaking providers. For tax purposes, health insurance contributions are deductible from Hungarian taxable income. Additional private insurance premiums may be partially deductible. The Affordable Care Act individual mandate exemption applies to expats with foreign coverage. Some Americans maintain U.S. insurance for visits home, though premiums aren't deductible in Hungary unless for local coverage.

Q: How are U.S. retirement accounts treated in Hungary?

Hungary generally respects the tax-deferred status of U.S. retirement accounts (401(k), IRA) until distribution, though no specific treaty provision exists. Distributions are taxable in Hungary at 15% for residents, with U.S. foreign tax credits available. Roth IRA distributions, tax-free in the U.S., face Hungarian taxation absent treaty protection. Contributing to U.S. accounts remains possible with U.S.-source income or if not claiming FEIE on sufficient foreign earned income. Hungarian private pension contributions (önkéntes nyugdíjpénztár) receive tax benefits locally but may face complex U.S. reporting as foreign trusts. Consider maintaining U.S. retirement accounts while using Hungarian tax-advantaged savings vehicles cautiously. Regular distributions might benefit from treaty provisions and foreign tax credit planning.

Why Choose American Expat CPA as Your Tax Partner

Navigating the intersection of U.S. and Hungarian tax systems requires specialized expertise that goes beyond traditional tax preparation. At American Expat CPA, we've built our practice specifically around the unique challenges faced by U.S. citizens living abroad, with particular depth in Hungarian tax matters.

Our Specialized Expertise

Our team combines U.S. tax expertise with deep knowledge of Hungarian tax law and regulations. We maintain relationships with trusted Hungarian könyvelők (accountants) to ensure seamless coordination of your dual filing obligations. Our professionals stay current with both U.S. tax reform and Hungarian legislative changes, including special regimes like KATA and the 9% corporate tax that can dramatically reduce your tax burden.

We understand that every expat situation is unique. Whether you're a digital nomad leveraging Hungary's new visa program, an entrepreneur benefiting from the 9% corporate tax rate, or a retiree enjoying Budapest's cultural richness, we develop customized strategies that optimize your specific circumstances. Our approach goes beyond compliance – we proactively identify opportunities to legally minimize your global tax burden while ensuring full compliance in both jurisdictions.

Comprehensive Service Offering

Technology-Enabled Global Service

We've built our practice for the digital age, serving clients across Hungary and worldwide through secure, cloud-based systems. Our portal provides 24/7 access to your documents, secure messaging with your tax team, and digital signature capabilities that eliminate the need for physical meetings. We conduct video consultations that accommodate Central European time zones, ensuring convenient access to expert advice regardless of your location in Hungary.

Transparent, Value-Based Pricing

We believe in transparent pricing with no surprise bills. Our comprehensive expat tax packages include all necessary forms and schedules, with clear pricing for additional services like amended returns or multi-state filings. Most importantly, our fee structure is designed to deliver value – the tax savings we identify typically far exceed our professional fees, making our services a smart investment in your financial future.

Your Success is Our Mission

Living in Hungary as a U.S. expat should be about enjoying the rich history, thermal baths, and vibrant culture – not stressing about tax compliance. We handle the complexity of dual taxation so you can focus on building your life in this beautiful Central European country. Our clients consistently save thousands in taxes while gaining peace of mind that their obligations are properly managed.

Whether you're just planning your move to Hungary, already established as a resident, or anywhere in between, American Expat CPA provides the expertise and support you need. We understand the expat journey because we specialize exclusively in international tax matters for U.S. citizens abroad.

Don't let tax complexity diminish your Hungarian experience. Contact American Expat CPA today and discover how our specialized expertise can optimize your tax situation, ensure compliance, and maximize the financial benefits of your international lifestyle. Your Hungarian adventure deserves expert tax support – let us be your trusted partner in navigating the complexities of U.S. and Hungarian taxation.