Hungary has taken a notably crypto-friendly approach in recent years, reducing its crypto tax rate and seeking to attract digital asset businesses. DAC8 transposition will introduce new compliance obligations that CASPs must integrate alongside this favorable tax environment.
Regulatory Context
The National Bank of Hungary (Magyar Nemzeti Bank — MNB) supervises financial services, while the National Tax and Customs Administration (Nemzeti Adó- és Vámhivatal — NAV) handles tax enforcement. CASPs must register under Hungary's AML framework.
Tax Treatment
Hungary offers one of the most competitive crypto tax rates in the EU at 15% on capital gains from crypto-asset disposals. The government has positioned this rate as part of a broader strategy to attract fintech and digital asset businesses to Hungary.
Transposition and TIN System
The Ministry of Finance (Pénzügyminisztérium) leads transposition into Hungarian law. NAV will serve as the competent authority for DAC8 reporting. Hungary uses the adóazonosító jel (tax identification sign) as the individual TIN — a 10-digit number assigned to all Hungarian taxpayers. Entities use the adószám (tax number).
Expected Penalties and Impact
Hungary's penalty framework includes tax penalties (adóbírság) of up to 50% of the tax shortfall for negligent violations and up to 200% for deliberate evasion. NAV has been modernizing its digital capabilities and is expected to use DAC8 data effectively for enforcement.
Conclusion
Hungary's competitive crypto tax environment makes it an attractive jurisdiction for CASPs, but DAC8 compliance obligations apply regardless of tax rates. CASPs should prepare for full reporting requirements while benefiting from the country's favorable tax treatment.
Preparing for DAC8?
Our team helps CASPs with gap analysis, transposition tracking, TIN validation, and XML report generation.