Accounting and Bookkeeping for a Hungarian Company

Do you need an accountant for a Hungarian company?

Yes. Every Hungarian company, from a single-owner Kft (limited liability company) to a large firm, must keep formal double-entry books from its first day of trading, and only a bookkeeper listed in the official register held by the Ministry for National Economy may legally do the work (source). For most owners this makes a monthly accountant, in Hungarian a konyvelo (bookkeeper), effectively mandatory rather than optional.

Hungary is popular with founders because the corporate tax rate is a flat 9%, the lowest in the European Union (source). Some small firms instead opt into the KIVA (small business tax) at 10%, which bundles corporate income tax and the employer social contribution tax into one levy (source). Either way, the trade-off for low rates is a fully digital compliance system that is strict about deadlines. Setting the company up correctly comes first, so it helps to read how to register a Kft in Hungary before you plan your ongoing books.

Is a bookkeeper legally required in Hungary?

Bookkeeping is a legal obligation, not a business choice. The Hungarian Accounting Act (Szamviteli torveny, Accounting Act) requires companies to use the double-entry system, in which every transaction is recorded in at least two accounts, and to prepare an annual set of financial statements made up of a balance sheet, a profit and loss statement and explanatory notes (source). Books are kept in forint under Hungarian accounting standards by default, while certain companies may apply international standards.

Two rules push almost every foreign owner toward a professional. First, the work is restricted: accounting services may only be provided by someone entitled to do so and listed in the register held by the Ministry for National Economy. Second, records must be kept in legible form for at least 8 years, including the annual report, ledgers and supporting inventory (source). Doing this yourself, in Hungarian, while meeting real-time reporting rules, is rarely realistic even for a dormant company.

What does a Hungarian accountant do each month?

A Hungarian accountant handles far more than year-end paperwork. The recurring monthly cycle usually covers recording incoming and outgoing invoices, preparing and filing the value added tax return, running payroll, and reporting employment taxes to the National Tax and Customs Administration (NAV).

A defining feature is real-time invoice reporting. Since 2021, data from every sales invoice issued by a Hungarian VAT-registered business must be transmitted to NAV through the Online Szamla (Online Invoice) system immediately on issue, for both business and consumer sales (source). Your accountant or invoicing software must be connected to this system. Because the standard VAT rate is a high 27% (source), getting these filings right matters, as the dedicated guide to Hungarian VAT (AFA) explains.

If you take on staff, payroll adds monthly obligations. The employer pays a 13% social contribution tax (szocho, social contribution tax) on top of gross wages, while employees have 18.5% in contributions and a 15% flat income tax withheld and reported each month (source). The guide to hiring your first employee covers this in detail.

What are the key accounting deadlines?

Deadlines in Hungary are strict and mostly digital. The three that structure a company's year are the monthly tax filings, the corporate income tax return and the annual report.

• VAT returns: filed monthly, quarterly or annually depending on turnover, with monthly filing the default for newly formed companies. Monthly and quarterly returns are due by the 20th day of the month following the period (source).
• Corporate income tax return: due by 31 May of the year after the tax year for companies on the calendar year (source).
• Annual report (beszamolo, financial statements): prepared, approved and published within five months of the balance sheet date, so by 31 May for calendar-year companies (source).

Missing the annual filing is serious. If a company keeps failing to publish its report, NAV can cancel its tax number and the company court can order compulsory dissolution (source). This is one reason owners keep a professional on a monthly retainer rather than scrambling once a year.

Does your company need a statutory audit?

Most small companies do not. A statutory audit becomes mandatory only when a company crosses two thresholds together, measured as an average over the previous two financial years.

As of 2026, an audit is required when average annual net revenue exceeds HUF 600 million and the average headcount is above 50 employees. The revenue threshold was raised from HUF 300 million to HUF 600 million from 1 January 2025 (source). A typical newly formed Kft with modest turnover therefore prepares and files accounts without a formal audit, though these limits can change and should be checked each year with your accountant.

How much does accounting cost in Hungary?

Monthly bookkeeping for a small Hungarian company commonly starts at around EUR 120 plus VAT per month, with entry packages that bundle a set number of accounting entries and payroll for one employee (source).

The final price scales with volume rather than a fixed tariff. Accountants price on business activity, revenue, number of employees and the count of incoming and outgoing invoices, so a dormant holding company pays far less than an active online shop issuing hundreds of invoices a month. Year-end financial statements, payroll for extra staff and VAT registration are often quoted on top of the monthly retainer. Opening a dedicated business bank account early keeps reconciliation clean and, in practice, keeps the bill lower.

In-house or outsourced, and how to choose an accountant?

For most foreign-owned companies, outsourcing to an accounting firm is the standard choice, especially in the early years when transaction volumes are low and hiring an in-house accountant is hard to justify. An external firm carries the professional liability, keeps up with frequent tax changes and stays connected to NAV systems on your behalf.

When comparing providers, look for genuine English-language service and clear reporting, not just filing. Useful questions include whether monthly management figures are shared in English, how invoices should be delivered, who is liable for any late-filing penalties, and whether payroll and VAT registration sit inside the quoted fee. A responsive accountant who explains the numbers is worth more than the cheapest monthly rate, particularly when a deadline or a tax query lands.

Where does a lawyer fit alongside your accountant?

An accountant keeps the books, but several company matters legally require a lawyer. Forming the company is the clearest case: a Hungarian Kft needs minimum share capital of HUF 3,000,000, and the founding deed must be countersigned by a Hungarian lawyer (ugyved, attorney) to be valid (source).

The same holds when the stakes rise later. Changing shareholders or the registered seat, drafting or reviewing contracts, responding to a tax audit, or resolving a dispute all sit with a lawyer rather than a bookkeeper. Many owners keep both relationships in place, with the accountant handling routine compliance and a lawyer on call for structural decisions. This general information is not a substitute for advice on your own situation.

Frequently asked questions

Is bookkeeping mandatory for a Hungarian Kft?

Yes. A Kft must keep double-entry books from its first day and prepare annual financial statements, and the work may only be done by a bookkeeper listed in the official register. Records must be kept for at least 8 years (source).

Can I do the accounting for my Hungarian company myself?

In practice, no. Hungarian law reserves bookkeeping for registered professionals, filings are in Hungarian, and every sales invoice must be reported to NAV in real time through the Online Szamla system, which makes self-filing unrealistic for most owners (source).

How much does a monthly accountant cost in Hungary?

Entry-level packages for a small company commonly start at around EUR 120 plus VAT per month and scale with your revenue, staff and number of invoices (source). Year-end statements and extra payroll are often billed on top.

What happens if I miss the annual report deadline?

The annual report is due within five months of the balance sheet date, so 31 May for calendar-year companies. Repeated failure to publish can lead NAV to cancel the tax number, after which the company court may order compulsory dissolution (source).

Does a small Hungarian company need an audit?

Usually not. As of 2026, a statutory audit is required only when average net revenue over the last two years exceeds HUF 600 million and the average headcount is above 50 employees (source).