The Hungarian Government’s declared goal is to provide special support for mothers raising children, recognizing their dual role in both the family and the workforce.
Currently, two different regulatory approaches apply under the personal income tax law:
In both cases, the tax exemption applies only to income derived from active work (e.g., wages). Passive income, such as interest, dividends, or capital gains, is not eligible for tax exemption.
The Government plans to expand this policy: from October 2025, mothers with three children will also be eligible for the same lifelong tax exemption, which is currently available only to mothers with at least four children, regardless of income.
Starting in January 2026, mothers with two children will be able to benefit from this exemption if they are under 40. From 2027, mothers aged 40-50, in 2028 women aged 50-60, and in 2029 women over 60 will also be eligible for this benefit.
Furthermore, starting from January 1, 2026, the income limit for mothers under 30 will be removed, making full tax exemption available to them.
It is important to note, however, that the legislative proposal has not yet been finalized, and the above information is based on current government communication.
From a global mobility perspective, it is worth noting that the status of an expatriate is unlikely to disqualify someone from eligibility for the benefit. This could result in significant corporate savings for those who provide guaranteed net salaries to employees sent to Hungary. One of the likely conditions for eligibility for the 2 and 3-child benefit will be eligibility for Hungarian family allowance (similar to the current benefit for mothers with at least four children) or meeting the criteria in the past. This raises an interesting question when someone with adult children arrives in Hungary.
After the final laws are enacted and legal practice is established, this issue will likely become clearer. In the meantime, we are happy to assist if any related questions arise.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Roland Szabo
Managing Director
Denes Megyesi
Director
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