Hungary vs Spain
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
ππΊ Hungary β Local Business Tax & Communal Levies
Hungary's 19 counties and 3,177 municipalities levy Helyi IparΕ±zΓ©si AdΓ³ (HIPA β local business tax) on companies at up to 2% of net revenues. This is a major cost for businesses operating in Hungary. Budapest applies the maximum 2%. Municipalities also set property tax (Γ©pΓtmΓ©nyadΓ³) within national caps. Hungary has a uniquely simple income tax structure with a flat 15% rate across all income levels.
πͺπΈ Spain β Autonomous Community & Municipal Taxes
Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econΓ³mico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.
Hungary vs Spain: Key Tax Differences (2026)
π° Income Tax: πͺπΈ Spain has a higher top income tax rate (15% vs 19β47%). ππΊ Hungary is more favourable for high earners.
π VAT/Sales Tax: Hungary has a higher consumption tax (5β27% vs 4β21%).
π’ Corporate Tax: ππΊ Hungary offers a lower corporate rate (9% vs 25%), which can influence business location decisions.
π Capital Gains: ππΊ Hungary taxes investment gains at a lower rate (15% vs 28%), benefiting investors.