Hungary

In Hungary, cryptocurrencies are legally classified as property or assets, not as currency, with special income tax rules introduced in 2022. The crypto market is regulated under Act VII of 2024 on the Crypto-Assets Market and the EU's MiCA regulation, meaning crypto exchange services will require specific licensing and compliance certificates from July 2025. Significant violations, particularly those exceeding HUF 5 million, may be treated as criminal offenses. The National Tax and Customs Administration (NAV) is the primary authority for administering personal income tax and capital gains tax on crypto transactions. The Hungarian Central Bank (MNB) oversees crypto-asset services under the MiCA framework and the domestic Crypto Act. The overarching legal framework includes amendments to the Personal Income Tax Act from 2022, alongside the new Act VII of 2024 and the EU's MiCA Regulation. For individuals, a flat 15% Personal Income Tax (PIT) applies to gains derived from cryptocurrency sales. This rate is consistent regardless of how long the crypto asset was held, meaning there is no benefit for long-term holding. Gains are calculated as the sale price minus the cost basis and are aggregated annually, with eligible costs deductible. The conversion of cryptocurrency to fiat currency (like Hungarian Forints or Euros) constitutes a taxable event. Businesses, on the other hand, pay a 9% Corporate Income Tax (CIT) on their crypto gains upon fiat conversion. While crypto trading is exempt from Value Added Tax (VAT), certain crypto-related services may be subject to a 27% VAT. Specific crypto activities are also subject to taxation. Staking rewards are taxed at a 15% PIT, either upon receipt or realization. Mining income for individuals is taxed at 15% PIT, while businesses pay 9% CIT, with operational costs like equipment and electricity being deductible. Profits from Decentralized Finance (DeFi) activities, such as yield farming, are also taxed at 15% PIT upon conversion to fiat. The sale of Non-Fungible Tokens (NFTs) generates capital gains taxed at the standard 15% PIT. Swapping one cryptocurrency for another is generally not considered a taxable event, with tax deferred until conversion to fiat. Hungary is currently implementing the MiCA regulation and refining the technical rules under its domestic Crypto Act. This includes the introduction of specific requirements for validators and compliance certificates for crypto exchanges, which will become mandatory from July 2025.