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Horizon UK Tax Solutions

Do I pay UK tax if I move to Hungary?

Answered by Jordan Onraet-Wells, Founder & Chartered Tax Adviser (CTA). Published 6 August 2026. Last reviewed 6 August 2026.

The short answer

Yes, until you break UK tax residence under the Statutory Residence Test, the UK taxes your worldwide income even after you move to Hungary. A Hungarian residence card changes nothing on its own. Once you are genuinely non-resident, UK tax narrows to UK-source items such as rental profits and gains on UK property, and Hungary taxes you instead at its flat 15% rate.

  • Moving alone does not end UK tax; you must become non-resident under the Statutory Residence Test.
  • Working full-time in Hungary with fewer than 91 UK days and fewer than 31 UK workdays is the cleanest way to break residence.
  • Split-year treatment can tax you as non-resident from your departure date, claimed on the SA109 pages of your return.
  • UK rental profits, government service pensions and gains on UK property stay UK-taxable after you leave.
  • Return within five years and the temporary non-residence rules can pull gains realised abroad back into UK tax.
  • Hungary taxes residents on worldwide income at a flat 15%, with a full UK treaty in force since 28 December 2011.

Fixed-fee service

Non-Resident and Expat Tax Return

£750 fixed

A Chartered Tax Adviser prepares and files your UK return for the year you leave, SA109 residence pages and any split-year claim included, and the non-resident returns that follow if you keep UK income. That is the total, agreed before any work starts. Never hourly. A return with several income streams, investments or structures is the Complex Personal Tax Return, from £950, and we tell you which fee applies before you commit.

  • SA109 residence pages and the split-year claim for your departure year
  • UK rental income, employment, pensions and gains on the right pages
  • Personal Allowance claimed as a non-resident where you qualify
  • Filed online as your agent, so the 31 January deadline stays open
Tax returns for expats

Residence decides it, not your address

The UK taxes you because you are UK tax resident, and residence is decided by the Statutory Residence Test, not by where your post goes. Until you are non-resident, HMRC taxes your worldwide income, including anything you earn in Hungary. The cleanest exit is the full-time work abroad route: work full time in Hungary, spend fewer than 91 days in the UK in the tax year and keep UK workdays below 31. If you leave part-way through a tax year, split-year treatment can treat you as non-resident from the day you go. It is claimed on the SA109 pages of your Self Assessment return; the P85 alone does not do it.

What the UK keeps taxing after you leave

Non-residence does not switch off UK tax completely. UK rental profits remain taxable under the Non-Resident Landlord Scheme, UK government service pensions usually stay taxable in the UK, and gains on UK property must be reported and paid within 60 days under the non-resident capital gains rules. Two tails deserve respect. If you return to the UK within five years, the temporary non-residence rules can tax gains and certain income you realised while away in your year of return. And since 6 April 2025 inheritance tax has been residence based, so a long-term UK resident can stay exposed on worldwide assets for up to 10 years after leaving.

What Hungary charges instead

Hungary is not a tax haven; it taxes residents on worldwide income. The attraction is the rate: a flat 15% personal income tax on salary, dividends and capital gains, and the EU's lowest corporation tax at 9% (companies also pay a municipal local business tax capped at 2%). Employees also pay an 18.5% social security contribution and employers a 13% social contribution tax, so the true wedge on salary is bigger than the headline suggests. The UK-Hungary double taxation convention, in force since 28 December 2011, settles which country taxes what. The mechanics, timings and traps are covered in our full guide to UK tax when moving to Hungary.

This is general information for the 2026/27 UK tax year, not personal tax advice; speak to a Chartered Tax Adviser about your own position.

Deadline 31 January 2027

Filing a 2025/26 return?

A Chartered Tax Adviser prepares and files it for you, including the pages HMRC's free online service cannot handle. Fixed fees from £450, non-resident and expat returns £750 fixed, agreed before any work starts.

How it works

Applies to you? Ask us directly

A page can only take you so far. Book a free 30-minute clarity call with Jordan, a Chartered Tax Adviser, and get this answered for your exact situation, on a fixed fee agreed upfront.

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2025/26 tax returns due 31 January
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