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TAX ADVICE

Advising on tax matters is always an intellectual challenge. Especially when we also have to predict the future, taking a position now on an issue that the tax authorities will judge in 5 years’ time. Perhaps that is why we love this area so much. But we also love it because we have to constantly innovate in the face of dynamically changing tax rules.
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RANKINGS
Tax Group of the Year Award - Wolters Kluwer
Market leader- Chambers Europe
Market leader – Legal 500 EMEA
Recommended law firm in International Tax Review, World Tax
idezet

OUR LATEST POSTS

Tamás Fehér

Transfer Pricing and VAT Go Hand in Hand

Tamás Fehér, | 1 October 2025

In its judgment in the Arcomet case, the Court of Justice of the European Union (CJEU) shed light on an area that has previously received less attention: certain transfer pricing adjustments cannot be regarded merely as accounting entries. In many cases, they may qualify as VAT-taxable services. This ruling prompts a reconsideration of how intra-group settlements are treated from a VAT perspective.

Henrik Bereznai

Trade War of Tariffs

Henrik Bereznai | 16 May 2025

As is well known, just over a week ago, Donald Trump's new executive order came into force, aiming to remedy “the persistent and significant trade deficit caused by international trade practices” by introducing import tariffs. We have examined how these measures may affect Europe and, within it, Hungarian businesses.

Tax Advisory Services in Hungary

Navigating Hungary's complex tax landscape requires more than basic compliance knowledge – it demands strategic insight, comprehensive understanding of evolving regulations, and the ability to optimize tax efficiency while maintaining full regulatory compliance. At Jalsovszky, we have established ourselves as the premier destination for comprehensive tax advisory services, helping international businesses and investors achieve their objectives while minimizing tax exposure and ensuring sustainable compliance strategies.

As leading tax consultants in Hungary, we recognize that effective tax planning forms the cornerstone of successful business operations and investment strategies. Our approach combines deep technical expertise in Hungarian tax law with practical business insight, enabling us to provide advice that is both legally sound and commercially viable. We understand that tax considerations affect virtually every business decision, from initial market entry strategies through complex restructuring and exit planning.

The complexity of modern tax planning extends across multiple jurisdictions, requiring careful coordination between Hungarian domestic tax requirements and international tax treaty obligations. Our integrated approach ensures that all aspects of tax planning are carefully considered, providing our clients with comprehensive strategies that optimize outcomes while maintaining compliance across all relevant jurisdictions. We maintain an extensive network of trusted foreign partners with whom we regularly collaborate, enabling us to provide reliable advisors for addressing cross-border matters.

Whether you are establishing operations in Hungary, planning cross-border transactions, or seeking to optimize existing tax structures, our team brings the expertise and strategic thinking necessary to achieve optimal tax outcomes in Hungary's evolving regulatory environment.

Comprehensive Corporate Tax Planning

Corporate tax in Hungary presents both opportunities and challenges for solely Hungarian and international businesses seeking to establish or expand their operations in the region. Our comprehensive corporate tax services encompass all aspects of business taxation, from initial entity structuring through strategic planning, initiatives that optimize tax efficiency while supporting broader business objectives.

Entity selection and structuring represent critical early decisions that can significantly impact long-term tax efficiency and operational flexibility. We work closely with clients to evaluate various corporate structures, considering factors such as business activities, ownership requirements, treaty benefits, and ongoing compliance obligations. Our analysis ensures that chosen structures provide optimal tax outcomes while maintaining operational flexibility and regulatory compliance.

Tax-efficient operational planning helps businesses optimize their Hungarian tax position through strategic decision-making regarding business activities, transfer pricing arrangements, and profit distribution strategies. We provide ongoing guidance that enables businesses to minimize their tax exposure while maintaining compliance with all applicable reporting and documentation requirements.

Merger and acquisition tax planning requires sophisticated coordination between transaction structuring and tax optimization objectives. We work closely with M&A teams to ensure that transaction structures minimize tax impacts while achieving commercial objectives and maintaining compliance with applicable tax regulations and reporting requirements.

International tax coordination becomes essential when Hungarian operations form part of broader international business structures. We help clients navigate complex international tax issues, including controlled foreign company rules, thin capitalization requirements, and treaty optimization strategies that minimize global tax exposure while ensuring compliance across all relevant jurisdictions.

Strategic Tax Planning in Hungary

Effective tax planning in Hungary requires comprehensive understanding of both current tax regulations and evolving legislative trends that may affect future tax obligations. Our strategic planning approach helps clients develop long-term tax strategies that provide sustainable benefits while maintaining flexibility to adapt to changing regulatory environments and business circumstances.

Cross-border investment structuring often presents significant tax optimization opportunities for international investors and multinational corporations. We design sophisticated investment structures that leverage Hungary's extensive treaty network and favorable tax provisions while ensuring compliance with applicable anti-avoidance rules and substance requirements.

Intellectual property tax planning has become increasingly important as businesses seek to optimize returns from intangible assets while complying with evolving international tax standards. We help clients develop IP holding structures and licensing arrangements that maximize tax efficiency while meeting substance requirements and transfer pricing documentation obligations.

Reorganization and restructuring tax planning enables businesses to optimize their tax positions through strategic corporate reorganizations, asset transfers, and business combination transactions. Our restructuring expertise ensures that planned transactions achieve desired tax outcomes while maintaining compliance with applicable procedural requirements and anti-avoidance provisions.

Exit planning and succession strategies require careful coordination between tax optimization objectives and commercial transaction requirements. We help clients develop comprehensive exit strategies that minimize tax exposure while maintaining transaction flexibility and ensuring compliance with all applicable disclosure and reporting obligations.

Advanced knowledge in employee incentive planning

Our tax-efficient employee benefit planning service helps businesses design and implement incentive structures that maximise value for both employer and employee. From tailored share-based incentive schemes and employee stock ownership plans (ESOPs) to performance-linked bonuses and profit-sharing arrangements, we create compliant, cost-effective solutions that attract, motivate, and retain top talent while optimising tax outcomes.

We advise on structuring benefits in line with local and international tax regulations, ensuring seamless integration with corporate governance and long-term business strategy. Whether launching an equity incentive program for executives, designing flexible benefit packages for key staff, or restructuring existing reward systems, our approach ensures legal compliance, financial efficiency, and enhanced employee engagement.

Expert wealth management

Our wealth planning practice offers a comprehensive suite of solutions designed to preserve and structure private wealth efficiently. Whether you seek trust-based arrangements, holding-company models, or international structures—including trusts, foreign holding companies, or foreign foundations—we tailor strategies for optimal asset protection and succession planning.

We also design flexible, long-term frameworks leveraging trust arrangements, family constitutions and contractual solutions, asset protection through investment foundations or funds, and custom family governance documents. These structures allow you to retain control, ensure generational continuity, manage tax efficiency, and safeguard family values—all while responding dynamically to changing legal and personal circumstances.

Specialized Real Estate Tax Advisory

Real estate tax in Hungary encompasses various tax obligations and planning opportunities that affect property investment, development, and operational activities. Our specialized expertise in real estate taxation helps clients optimize their tax positions while ensuring compliance with all applicable regulatory requirements and reporting obligations.

Property acquisition tax planning addresses the various tax implications of real estate purchases, including transfer taxes, VAT considerations, and ongoing holding structure optimization. We help clients structure property acquisitions to minimize tax costs while ensuring compliance with applicable documentation and registration requirements.

Development project tax optimization requires comprehensive planning that addresses tax implications throughout the development lifecycle, from initial land acquisition through construction activities and final sales or leasing arrangements. Our development tax expertise helps clients optimize project economics while maintaining compliance with complex VAT and income tax regulations.

Investment fund tax planning for real estate focuses on optimizing fund structures and investor arrangements to minimize tax exposure while complying with applicable fund regulations and investor protection requirements. We design tax-efficient fund structures that attract international investors while maintaining regulatory compliance and operational flexibility.

Property management tax considerations affect ongoing operations and profitability of real estate investments through various recurring tax obligations and compliance requirements. We provide guidance on optimizing property management tax positions while ensuring compliance with applicable reporting and documentation obligations.

Comprehensive Tax Legal Services

As experienced tax lawyers in Hungary, we provide comprehensive legal services that address both routine compliance matters and complex dispute resolution situations. Our legal expertise enables us to represent clients effectively in tax audits, administrative procedures, and litigation matters while providing strategic guidance that protects our clients' interests and achieves optimal outcomes.

Our tax legal due diligence service provides a thorough review of a company’s tax compliance, potential liabilities, and structural risks before mergers, acquisitions, or significant investments. We analyse past and current tax positions, assess the validity of tax filings, and identify exposures in corporate structures, cross-border transactions, and incentive schemes to give you a clear picture before making critical business decisions.

Tax audit representation requires specialized knowledge of administrative procedures, evidence presentation, and negotiation strategies that can significantly impact audit outcomes. We provide comprehensive audit support that protects our clients' interests while seeking to resolve disputes efficiently and cost-effectively through negotiation and administrative procedures.

Administrative appeal procedures often provide opportunities to resolve tax disputes without resorting to formal litigation. Our expertise in administrative appeal processes enables us to present compelling arguments that address both legal and factual issues while seeking favorable resolutions that minimize our clients' tax exposure and compliance costs.

Tax litigation support encompasses representation in various court proceedings where tax disputes require formal judicial resolution. Our litigation experience spans complex legal and factual issues, enabling us to provide effective advocacy that protects our clients' interests while seeking favorable judicial outcomes.

Voluntary disclosure and compliance correction programs sometimes provide opportunities to resolve past compliance issues while minimizing penalties and interest charges. We help clients evaluate voluntary disclosure opportunities while developing strategies that achieve optimal outcomes and prevent future compliance problems.

Withholding tax regulations in Hungary create both compliance obligations and optimization opportunities for businesses engaged in cross-border transactions and investment activities. Our expertise in withholding tax matters helps clients navigate complex requirements while identifying opportunities to minimize withholding tax exposure through treaty optimization and structural planning.

Why Choose Our Tax Law Firm Excellence

Our reputation as Hungary's leading tax advisory practice reflects our commitment to delivering exceptional outcomes through comprehensive technical expertise, strategic thinking, and practical business insight. Jalsovszky combines deep understanding of Hungarian tax law with extensive experience in international tax planning, enabling us to provide guidance that addresses both local requirements and global tax optimization objectives.

The trust that international corporations, investment funds, and high-net-worth individuals place in our tax advisory services stems from our consistent track record of successful tax planning and compliance outcomes across various industries and transaction types. Our experience spans routine compliance matters through complex international tax planning and dispute resolution.

Our integrated approach combines traditional tax expertise with specialized knowledge in corporate law, international transactions, and regulatory compliance. This comprehensive capability enables us to provide tax advice that considers all relevant legal and commercial factors while optimizing outcomes and maintaining regulatory compliance.

When you engage our tax advisory team, you gain access to Hungary's most experienced tax professionals, comprehensive regulatory knowledge, and the confidence that comes from working with advisors who understand both the technical intricacies and practical realities of successful tax planning in Hungary's dynamic regulatory environment.