Tax rates on dividends in Hungary are subject to change, depending on the type of dividends and the residency of the shareholder. For individuals, the tax rate is usually 15% for dividends received from domestic companies, while the rate may vary between 5% and 35% for dividends received from foreign companies. For corporate shareholders, the tax rate on dividends is generally 0%. However, the Hungarian corporate tax system applies a so-called "participation exemption," which allows companies to exclude certain dividend income from their taxable income. It's essential to consult with a tax professional to understand the tax rules and rates for dividends in Hungary.
