Additional rules for foreign Employees in connection with the 2026 tax allowances in Hungary

What should you pay special attention to as an HR professional?

When it comes to tax allowance eligibility for foreign Employees, additional rules also need to be taken into account.
It is not only whether the individual meets the basic conditions of a given allowance that matters, but also, for example, what citizenship and residence status they have.

Important changes from 2026

In 2026, the group of foreign private individuals who may be eligible for the first marriage tax allowance and the tax allowance for young people under 25 will be expanded.

These tax allowances will be available not only to EEA citizens and citizens of Ukraine or Serbia, but also to foreign individuals

• who qualify as stateless persons, or
• who hold a permanent residence permit and are therefore considered Hungarian tax residents.

Naturally, the other conditions set out in the declaration guidelines shall also be met.

Family tax allowance and mothers’ tax allowances for foreigners

In the case of the family tax allowance and the tax allowance for mothers under 30, eligibility is not exclusively linked to entitlement to Hungarian family allowance (’családi pótlék’).

If the foreign Employee

• is not entitled to Hungarian family allowance under the Hungarian family support legislation, but
• is entitled to family benefits, disability benefits or other similar allowances under the legislation of an EEA state, or of Ukraine or Serbia,

and meets the additional conditions set out in the declaration guidelines, they may also be eligible to claim these tax allowances in Hungary.

One mandatory additional step for all foreigners

If a foreign Employee claims any Hungarian tax allowance, this shall always be supplemented by an additional declaration: the Declaration of foreign tax residency.

In this declaration, the foreign individual states that their income taxable in Hungary in the tax year – including income, pension and other similar income from previous employment – reaches 75% of their total income for the tax year.

For this reason, as an HR professional, it is essential that you request not only the ’main’ tax allowance declaration, but also this additional document in the case of a foreign Employee.

Why is this important from an HR perspective?

If you understand the special rules and the changes coming in 2026, you can also provide real support to your foreign colleagues: you can ensure that they receive the same financial benefits as your Hungarian Employees. This not only increases Employee satisfaction, but also makes HR processes more transparent, more predictable and safer from a compliance perspective.