Hungary has had a year rougher than most due to the ongoing pandemic. Looking for ways to attract capital in an effort to get back on their feet, they’ve decided to slash taxes on crypto by half.
While Australia is looking at targetting crypto investors, Hungary is taking the opposite approach, by reducing its crypto taxes.
Crypto Taxes Down To 15% in Hungary
In a video posted on Facebook, Hungarian Finance minister Mihály Varga announced that the taxes on capital gains made through cryptocurrencies would be cut from 30.5% to a mere 15%.
Currently, cryptocurrencies are taxed as “other income” in Hungary, as regulations around Bitcoin and other cryptos are less developed than in other EU states.
However, this tax cut would make Hungary one of the most attractive destinations in the EU for crypto investors, alongside countries such as Germany, whose legislation rewards you for HODLing – if tokens are held for more than a year, cryptocurrency is no longer subject to taxation.
Crypto Tax Rates by Country Comparison
Here’s how Hungarian crypto taxes will measure up to other countries:
| Australia | Subject to CGT rates – up to 47% |
| USA | Subject to Property Tax – can be up to 37% in the first year |
| New Zealand | Subject to rates for individuals and businesses |
| Germany | 0% if held for over a year – 0 tax if transaction is worth less than 600 EUR and tokens were held for less than a year |
| Hungary | 30.5% currently, soon to be reduced to 15% |
| Italy | 26%, provided profit is over 51,645.69 EUR for 7 days in a row |
| Spain | 19% to 23% |
| Belgium | 33% |
| Denmark | 55% |
| Israel | 30% |
| UK | Subject to UK CGT – Income tax may also apply if trades are done frequently |
| Argentina | 15% |
| France | 33.33%, to be reduced to 25% in 2022 |
| Netherlands | Subject to progressive income tax |
While Hungary may not be as far on the road to crypto adoption as states like Estonia, the country is taking important steps toward becoming crypto-friendly, which should attract fintechs and investors from around the globe.
If you’re in Australia and need some help with your Tax then check out the following guides:
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