Hungary vs Eritrea
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ญ๐บ Hungary โ Local Business Tax & Communal Levies
Hungary's 19 counties and 3,177 municipalities levy Helyi Iparลฑzรฉsi Adรณ (HIPA โ local business tax) on companies at up to 2% of net revenues. This is a major cost for businesses operating in Hungary. Budapest applies the maximum 2%. Municipalities also set property tax (รฉpรญtmรฉnyadรณ) within national caps. Hungary has a uniquely simple income tax structure with a flat 15% rate across all income levels.
๐ช๐ท Eritrea โ Eritrea Tax System
Eritrea has a progressive income tax up to 38%. Uniquely, it levies a 2% 'diaspora tax' on Eritrean citizens living abroad โ a controversial policy condemned by the UN. Corporate tax is 30%. The highly centralized command economy under President Isaias Afwerki limits private sector activity. Mining (gold, copper, zinc) is the main formal revenue sector. International sanctions apply.
Hungary vs Eritrea: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ช๐ท Eritrea has a higher top income tax rate (15% vs 0โ38%). ๐ญ๐บ Hungary is more favourable for high earners.
๐ VAT/Sales Tax: Hungary has a higher consumption tax (5โ27% vs 5%).
๐ข Corporate Tax: ๐ญ๐บ Hungary offers a lower corporate rate (9% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ญ๐บ Hungary taxes investment gains at a lower rate (15% vs 30%), benefiting investors.