Hungary Reduces Tax Rate on Cryptocurrencies

Reading Time: < 1 minute

Pushed through by state secretary Norbert Izer and communicated by the Ministry of Finance as a success story, Hungary has reduced the tax rate on cryptocurrencies from 30.5% to 15%. The announced tax reform has, to some extent, been triggered by rising prices, although – independent of the government’s measures –  the exchange rate of cryptocurrencies suddenly collapsed following the announcement.

Regardless of these circumstances, observers consider it a major achievement that profits generated by domestic cryptographic assets, already estimated at HUF 3-400 billion, can at least be taxed to a moderate extent in the future. The government expects a yearly tax revenue of up to HUF 15-20 billion as a result. It hopes that those trading with cryptocurrencies can now earn legal income and come out of hiding. However, it is yet to be seen if most people who had hoped that financial authorities would not detect their income, will be ready to pay the reduced tax rate or continue to risk being caught, as in the future, dealing with cryptocurrencies may become more traceable as data exchange between financial supervisory authorities develops.

CET Editor

Recent Posts

Poland to focus on security, regional cooperation during upcoming EU rotating presidency

Polish government representatives outlined the key priorities for its six-month stint holding the presidency of…

6 days ago

Bulgaria, Romania to join Schengen free travel area

Romania and Bulgaria are set to become full members of the Schengen Area on 1…

6 days ago

Slovenia tightens border as EU pledges migration revamp

Slovenia has announced an increase in border controls with Croatia and Hungary, citing national security and escalating concerns over…

6 days ago

Poland leads CEE on media subscriptions – Reuters institute report

Digital news consumption in Central and Eastern Europe (CEE) is transforming, driven by evolving audience…

6 days ago

FDI paints rosier picture for Poland, Romania – OECD report

Central and Eastern European (CEE) countries are still navigating post-pandemic economic challenges amid newer geopolitical…

2 weeks ago

Statistics Austria sees prosperity in decline

Austria's economy has contracted for the sixth quarter in a row, and there has been…

2 weeks ago