Hungary ranks among the top 10 most competitive tax systems within OECD countries, according to the recently published 2025 International Tax Competitiveness Index. The ranking, compiled annually by the Washington-based Tax Foundation think tank, places Hungary 9th overall out of the 38 countries analysed.
The International Tax Competitiveness Index (ITCI) provides a comparative assessment of how effectively national tax systems balance competitiveness and neutrality—two core principles that shape investment decisions and long-term economic performance. By analysing more than 40 policy variables across corporate, individual income, consumption and property taxation, as well as the treatment of foreign-sourced profits, the ITCI evaluates both the level and structure of taxes that influence business activity and growth. Its overarching aim is to identify which tax codes foster low, non-distortionary marginal rates that attract investment in an increasingly mobile global economy, and which systems minimize targeted exemptions or complex rules that undermine neutrality.
Although broader economic factors also play crucial roles, the Index serves as a comprehensive guide for understanding how tax policy supports or constrains sustainable economic development, while noting that some recent national reforms may not yet be captured in the latest edition.
‘The country ranked fourth in the categories of corporate tax and cross-border tax rules, while it placed third for individual taxes’
Hungary achieved 78.7 points out of 100, placing it ninth among the 38 OECD countries, ahead of the Czech Republic and just behind Israel. The country ranked fourth in the categories of corporate tax and cross-border tax rules, while it placed third for individual taxes. In the categories of consumption taxes and property taxes, Hungary is ranked 38th and 22nd respectively.
‘A stable, transparent and competitive tax system remains one of Hungary’s strongest advantages for international investors,’ István Joó, CEO of the Hungarian Investment Promotion Agency (HIPA), commented in a social-media post. He added that the competitiveness provided by Hungary’s tax system has contributed to ‘HIPA’s third strongest consecutive year in terms of FDI’.
According to the Index, Estonia has the most competitive tax system among OECD countries for the 12th consecutive year.
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