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Hungary

Capital: Budapest
Population: 9,772,756
Total land area (km2): 93,030 km2
Passenger cars: 3,638,374
Highway (km): 1,936 km
Category Description
Ownership Tax Benefits

Hungary - Ownership Tax Benefits

Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.
Registration Tax Benefits

Hungary - Registration Tax Benefits

Cars with green plates (environmentally friendly cars) have environmental classifications of "5E" (100% electric), "5N" (plug-in hybrid), "5P" (100% electric for at least 50 km), or "5Z" (zero emission cars), which are exempt for paying registration tax. For other cars, the system is progressive, with different levels of technical properties (engine capacity and environmental classification) that pay different amounts of registration tax. Registration tax for regular hybrids is € 209.
Local Incentives

Hungary - Local Incentives

Free Parking:

- Parking benefits

- Free parking while charging

Low / Zero Emission Zones

- Traffic allowance during smog alert

Company Tax Benefits

Hungary - Company Tax Benefits

Environmentally friendly cars are excluded from the scope of the law for company car tax.
Purchase Subsidies

Hungary - Purchase Subsidies

Since May 2017, Hungary has opened three different purchase subsidy calls for natural and private persons (companies, public organisations, etc.).

For 2020 the subsidy amounts for electric passenger cars that meet the conditions are:

New electric passenger car for sale or private lease (private usage): € 6.950 or 50% of purchase price, if it is between € 2.800 and € 30.500

New electric passenger car for sale or private lease (business purposes): max. 55% of purchase price, if it is between € 2.800 and € 41.700.

Conditions:
- 100% electric passenger or light freight car.
- The list price (original new price) is not lower than € 2.800 and not higher than € 41.700.
- Eligible vehicle categories are "M1" (passenger car), "N1" (freight transport)  and "N2" (not higher than 4,25 tonnes)
- New cars must be purchased through a specialist dealer, listed to the database of the IFKA agency
- Test car mileage must not exceed 6.000 km and registration date can be no older than 180 days
- Subsidy condition for business purposes is "de minimis"

Budget
The budget is allocated for each of the subsidy calls. The total available budget for the subsidy programme (ZFR-D-Ö-2020) in 2020 is € 15,15 million. The budget for new electric cars for business purposes (passenger transport) is € 6,06 million. The  funds for the different call for proposals are usually subsequently replenished. Budgets for next the call is expected to be announced early 2021.

Ownership Tax Benefits

Hungary - Ownership Tax Benefits

Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.

VAT Benefits

Hungary - VAT Benefits

With regard to VAT, the same rules apply to these vehicles as to any other passenger car (50% of the operating VAT is deductible).

Other Financial Benefits

Hungary - Other Financial Benefits

From 01.01.2017, a tax credit can be used in the corporate tax for the acquisition of assets for energy efficiency purposes. The tax credit does not constitute de minimis aid and can be claimed for 6 tax years, up to a maximum of 70% of the calculated tax. The tax benefit is differentiated progressively based on the geographical region and size of the company, but no more than € 15 million.

Infrastructure Incentives

Hungary - Infrastructure Incentives

Total cost of electric charging stations is deductible from the corporate tax (since 2017).

Total cost of electric charging stations is deductible from the income tax base of energy suppliers .

Announced policy changes

Hungary - Announced policy changes

Support of the electric vehicles: reduction of the outdated import vehicles + continuously providing the non-monetary incentives (like green license plate) until 2030

Development of electric car support system for local governments until 2025

Development of charging infrastructure
2025 – NO special requirement for home charging
2025 – Installation of home charging equipment only with qualified professional
2030 – Support the spreading of CCS-Type 2 and CHAdeMO

Category Description
Ownership Tax Benefits

Hungary - Ownership Tax Benefits

Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.
Registration Tax Benefits

Hungary - Registration Tax Benefits

Cars with green plates (environmentally friendly cars) have environmental classifications of "5E" (100% electric), "5N" (plug-in hybrid), "5P" (100% electric for at least 50 km), or "5Z" (zero emission cars), which are exempt for paying registration tax. For other cars, the system is progressive, with different levels of technical properties (engine capacity and environmental classification) that pay different amounts of registration tax. Registration tax for regular hybrids is € 209.
Local Incentives

Hungary - Local Incentives

Free Parking:

- Parking benefits

- Free parking while charging

Low / Zero Emission Zones

- Traffic allowance during smog alert

Company Tax Benefits

Hungary - Company Tax Benefits

Environmentally friendly cars are excluded from the scope of the law for company car tax.
Purchase Subsidies

Hungary - Purchase Subsidies

Since May 2017, Hungary has opened three different purchase subsidy calls for natural and private persons (companies, public organisations, etc.).

For 2020 the subsidy amounts for electric passenger cars that meet the conditions are:

New electric passenger car for sale or private lease (private usage): € 6.950 or 50% of purchase price, if it is between € 2.800 and € 30.500

New electric passenger car for sale or private lease (business purposes): max. 55% of purchase price, if it is between € 2.800 and € 41.700.

Conditions:
- 100% electric passenger or light freight car.
- The list price (original new price) is not lower than € 2.800 and not higher than € 41.700.
- Eligible vehicle categories are "M1" (passenger car), "N1" (freight transport)  and "N2" (not higher than 4,25 tonnes)
- New cars must be purchased through a specialist dealer, listed to the database of the IFKA agency
- Test car mileage must not exceed 6.000 km and registration date can be no older than 180 days
- Subsidy condition for business purposes is "de minimis"

Budget
The budget is allocated for each of the subsidy calls. The total available budget for the subsidy programme (ZFR-D-Ö-2020) in 2020 is € 15,15 million. The budget for new electric cars for business purposes (passenger transport) is € 6,06 million. The  funds for the different call for proposals are usually subsequently replenished. Budgets for next the call is expected to be announced early 2021.

Ownership Tax Benefits

Hungary - Ownership Tax Benefits

Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.

VAT Benefits

Hungary - VAT Benefits

With regard to VAT, the same rules apply to these vehicles as to any other passenger car (50% of the operating VAT is deductible).

Other Financial Benefits

Hungary - Other Financial Benefits

From 01.01.2017, a tax credit can be used in the corporate tax for the acquisition of assets for energy efficiency purposes. The tax credit does not constitute de minimis aid and can be claimed for 6 tax years, up to a maximum of 70% of the calculated tax. The tax benefit is differentiated progressively based on the geographical region and size of the company, but no more than € 15 million.

Infrastructure Incentives

Hungary - Infrastructure Incentives

Total cost of electric charging stations is deductible from the corporate tax (since 2017).

Total cost of electric charging stations is deductible from the income tax base of energy suppliers .

Announced policy changes

Hungary - Announced policy changes

Support of the electric vehicles: reduction of the outdated import vehicles + continuously providing the non-monetary incentives (like green license plate) until 2030

Development of electric car support system for local governments until 2025

Development of charging infrastructure
2025 – NO special requirement for home charging
2025 – Installation of home charging equipment only with qualified professional
2030 – Support the spreading of CCS-Type 2 and CHAdeMO