The draft individual income tax return prepared by the Hungarian National Tax and Customs Administration (NAV) may look ready to submit — but in many cases, it won’t include all the income types and deductions you are responsible for reporting yourself. Thoroughly reviewing and, where necessary, supplementing your tax draft is essential to avoid tax risks and benefit from all available tax‑reducing opportunities.
Why You Still Need to Double‑Check Your Tax Draft
The NAV made the 2025 draft individual income tax returns for the 2025 tax year available on its eSZJA platform from March 15, 2026. Although many taxpayers’ draft returns will automatically become final on May 20 if no changes are made, a careful review is highly recommended. In certain cases, the draft individual income tax return may need to be supplemented. This is particularly true for individuals who, during the 2025 tax year, had income from abroad, realized revenue from the sale or rental of real estate, operated as a sole proprietor, or incurred gains or losses from a controlled capital market transaction.
Foreign Income
Determining the tax liability for income earned from foreign sources during the 2025 tax year is a complex task. In doing so, it is necessary to consider not only the provisions of the Hungarian personal income tax law but also the tax regulations of the relevant foreign state and the double taxation treaties in force between Hungary and the respective country.
Taxation may differ depending on the type of income. For example, foreign capital gains are generally taxable only in Hungary, while dividend income is often taxed both in the source country and in Hungary.
Personal income tax liability in Hungary may arise from foreign income, for instance, if:
- the individual performs work from Hungary for a foreign employer, or
- maintains a securities account at a foreign bank or investment service provider.
It should be noted that when preparing the 2025 draft individual income tax return, NAV does not yet know which individuals have income from abroad. Within the European Union, for example, data exchange occurs under the DAC1 Directive regarding income from employment and remuneration of executives, and over a hundred countries provide information on foreign financial accounts and the income generated from them. Data on income generated in 2025 will already be received by the tax authority in 2026. However, based solely on data received from abroad, the authority cannot determine the Hungarian tax base; for this, NAV requires additional information and documents from the taxpayer.
According to NAV’s 2026 audit plan, the tax authority will initiate so-called supportive procedures in 2026 for individuals whose foreign accounts or income are reported through automatic information exchange. These procedures aim to allow taxpayers to correct their returns and fulfill their tax obligations appropriately. In the past, there have been cases where a supportive procedure concluded without results, and the authority did not contact the taxpayer regarding the affected year. In the 2026 audit plan, NAV indicated that taxpayers who do not cooperate during the supportive procedure and have the largest tax discrepancies will be selected for compliance audits. The authority also noted that taxpayers who, despite supportive action, do not resolve the detected discrepancies should expect that NAV will settle the tax obligations through an audit.
Read our blog post on foreign capital income as well! Targeting foreign capital income: NAV tightens regulations | RSM Hungary
Although the above procedures are expected to affect previous years, it is advisable to accurately report the data in the 2025 tax return, as doing so can prevent numerous potential issues and future correction obligations.
Income from Rental of Real Estate
If a company (considered a payer) rents the property and provides data to the tax authority, the draft prepared by NAV includes the data regarding income from the rental, including personal income tax withheld by the payer.
If the landlord declared during the year a 10% cost rate but incurred significant expenses, it may be worthwhile to choose itemized cost accounting for determining the tax base.
If the property is rented by an individual, the landlord must report the income from the rental, expenses, profit, and the amount of quarterly pre-paid tax in the individual income tax return.
Income from Sale of Real Estate
If the property was sold by the individual at a lower price than the purchase price or was sold more than five years after purchase, no income arises for personal income tax purposes, and the income from the sale does not need to be included in the tax return. In other cases, the individual must determine the income from the sale and supplement the draft tax return with these data. The help section available on the electronic platform can assist in this process.
Income from Sale of Movable Property
No tax liability arises if the individual’s total income from the sale of movable property – provided it does not originate from economic activity – does not exceed HUF 200,000. It is important to note that income is not equal to the sale price of the movable item; the Personal Income Tax Act specifies how the income can be reduced and what documentation is required to support it. If the income from the sale of movable property exceeds HUF 200,000, tax must be paid at 15% only on the portion exceeding HUF 200,000. In this case, the total income must be reported, but the tax determined at 15% is reduced by HUF 30,000.
Controlled Capital Market Transaction (ETÜ)
Those who have gains or losses from a controlled capital market transaction (ETÜ) must not forget about tax equalization, which can help save personal income tax.
If an individual earns income from a controlled capital market transaction – e.g., sale of shares – through a domestic bank or investment service provider, NAV’s draft will show the amount of income. However, the section on tax equalization must be completed manually, as NAV does not prepare it automatically.
This is significant because, for the tax year and the following two years, tax attributable to ETÜ gains and ETÜ losses can be offset against each other. This is the so-called tax equalization.
Income from controlled capital market transactions may also arise at foreign banks or investment service providers. NAV’s draft does not contain any data for these. Tax equalization applies to these incomes as well, provided the return is filled in correctly.
If someone has incurred ETÜ losses, it should also be reported in the return. For example, if an individual incurred a HUF 5,000,000 loss in 2025, the corresponding personal income tax is HUF 750,000. If the individual earns at least HUF 5,000,000 in ETÜ gains in the next two years, they can reduce their tax liability by the full HUF 750,000, provided the tax equalization section is correctly completed in the relevant returns.
Cryptocurrency Transactions and Individual Income Tax
Data related to cryptocurrency transactions are also not included in NAV’s draft unless the income comes from a payer who reported it to NAV. Taxation occurs when the crypto asset exits the crypto ecosystem, i.e., it is converted to fiat currency or used to purchase goods or services.
If the income realized in 2025 exceeds verified expenses, fees, and commissions related to acquiring crypto assets and transactions, the transaction profit must be determined, and a 15% personal income tax obligation arises.
Two-year tax equalization rules also apply to crypto transactions, so it is recommended to supplement the draft even if losses were incurred in 2025.
According to NAV’s 2026 audit plan, taxpayers who earn income from cryptocurrencies can expect that the authority will examine whether their tax and filing obligations have been met according to legal requirements through supportive procedures.
Family Tax Benefit
Parents can claim the family tax benefit in the tax return even if it differs from the tax prepayment declaration made during the year. This means that if only one parent used the benefit during the year, but the other parent is also eligible, they can share it in the return. This is especially beneficial if one parent could not fully utilize the benefit due to lower income.
If someone did not apply the benefit during the year (e.g., did not declare it to their employer), they can still claim it in the income tax return. Eligibility requires proof of entitlement to family allowance.
Other Tax Benefits to Consider in the Individual Income Tax Return
Several other tax benefits can be claimed, which may not be fully included in NAV’s draft. These include:
- Benefit for individuals under 25 – Exemption is automatically applied in employer/payer withheld tax, but if missed, it can still be claimed in the return.
- Benefit for mothers under 30 – Mothers with at least one child are entitled to exemption on certain types of income.
- Benefit for mothers with four or more children – These mothers are exempt from personal income tax on wages and certain other income.
- Benefit for mothers with three children – Mothers raising at least three children are entitled to personal income tax exemption on specific income (e.g., wages) from October 1, 2025.
- Personal allowance – Individuals with certain illnesses are entitled to significant annual tax relief.
- First-marriage benefit – Couples married within the last two years can claim HUF 5,000 per month (maximum 24 months).
If someone did not declare these during the year but is eligible, they can still claim them in the individual income tax return.
When Action Is Required on the Individual Income Tax Return
If the taxpayer agrees with NAV’s draft individual income tax return and no modification is needed, the return becomes final on May 20, 2026.
Exceptions:
- Primary producers, sole proprietors, and taxpayers with tax numbers – They must always supplement and submit the return because NAV’s draft does not contain all relevant data.
- Individuals with foreign income – The draft does not include foreign income (e.g., foreign employment income, dividends, capital gains), so the taxpayer must enter these.
- Income from rental of real estate – Especially if the tenant is an individual, as NAV’s draft does not include this data.
- Gains or losses from controlled capital market transactions (ETÜ) – These must be correctly reported for tax equalization purposes.
How to Modify the Draft Individual Income Tax Return
The draft can be modified until May 20, 2026. Modifications can be made:
Electronically:
- Log in to NAV’s eSZJA system to modify and submit the draft.
On paper:
- The taxpayer can independently submit the completed 25SZJA form by mail to NAV.
Request the assistance of a tax advisor
If there is any uncertainty regarding the tax return, it is advisable to consult a tax advisor to avoid future tax risks and to utilize all available benefits.
