Last verified: 6 October 2026.

PROPOSAL, NOT LAW. The government put this draft out for public consultation on 6 October 2026. Parliament has not voted on it. Today’s KATA rules still apply until a law says otherwise.

Freelancers keep asking me one thing: what if my clients are companies? The KATA 2027 Hungary proposal, published on 6 October 2026, could finally answer that. It would reopen KATA to part-timers, pensioners and students, allow invoicing to companies, and lift the limit from HUF 18 million to HUF 22 million. It is only a draft in public consultation, so today’s rules still apply.

The outlets covering this disagree on the transition rules. So I have separated what the government says from what the press reports, and I have pointed out the gaps.

When Andrew and I moved to Hungary in 2017, we both started out on KATA. It worked perfectly for us in that first year, and it was simple enough to understand when everything else in the country was unfamiliar. I checked every figure below against the government’s own announcement of 6 October 2026. This is general information, not personal tax advice.

Why Freelancers Kept Hitting a Wall

Since the 2022 overhaul, KATA has fitted people who bill individuals far better than people who bill companies. That is the gap the new draft targets. Many freelancers in Hungary work for foreign or Hungarian firms, not for private clients. At my financial events, the same question comes back every time. “Fine, but what am I supposed to use if my clients are companies?” Until now, the honest answer was a shrug and a call to your accountant.

The draft changes that on paper. The government says it wants to widen the circle of people who can use KATA and let them invoice organizations again. Whether the final law keeps that promise is the open question.

KATA 2027 Hungary: What the Draft Actually Says

The draft would bring KATA back from 2027 with a HUF 22 million annual revenue limit, a HUF 100,000 monthly fee for full-time entrepreneurs and HUF 50,000 for part-timers. Companies and other organizations could become clients again. Income from them would carry a 15 percent tax, with your fixed KATA payments counting towards it. Here is the summary.

The HUF 8 million example

The government gives one worked example. A full-time KATA entrepreneur who earns up to HUF 8 million a year from companies pays only the fixed HUF 100,000 a month. The 15 percent tax is already covered by the KATA payments up to that point. Earn more from companies than that, and extra tax kicks in.

A bigger safety net

Telex reports that the base used to calculate sick pay, maternity benefits and pension contributions for KATA taxpayers would rise sharply, from HUF 108,000 to HUF 317,000 a month in 2027. I have not confirmed that figure in the draft itself. Treat it as unverified until you read the consultation text.

The 50 Percent Rule That Could End Your KATA

If more than half of your yearly income comes from one payer, you could lose KATA status. Telex reports this rule, which aims at disguised employment. That means a contractor who invoices a single company and works like an employee. Related companies would count as one payer.

This matters for exactly the people the reform seems to welcome. A freelancer with one big anchor client could find the door closes at year end. If that sounds like you, count last year’s income by payer before you plan around KATA. I would not rely on this point until I had read the draft itself.

Existing KATA Holders vs Newcomers: The Wrinkle

Existing KATA taxpayers and people who join the new system would not necessarily be treated the same way during the transition. The government says full-time KATA taxpayers who invoice only individuals would pay HUF 75,000 a month in 2027, rising to HUF 100,000 from 2028. Telex adds that the old and new systems would run in parallel and that existing taxpayers would phase out by 2029. The sources do not match on every detail.

Here is what I cannot tell you yet. I do not know whether a current KATA taxpayer keeps the old terms, moves to the new ones, or has to choose. I also do not know the exact cut-off date for “existing”. Telex mentions 31 December 2026. Do not treat that date as fixed. [CONFIRM against the consultation draft before publishing.]

What I Would Do Before It Becomes Law

Do not switch, quit or restructure your business on the strength of a draft. Draft laws change between consultation and the vote, and the transition rules are the part most likely to move. Here is the short list I would follow.

1. Read the draft. The government published it on its consultation portal. [Consultation portal URL]
2. Sort your income by payer. The 50 percent rule and the HUF 8 million example both depend on who pays you.
3. Ask your accountant about transition. Ask specifically what happens to existing KATA holders.
4. Send comments. Public consultation exists so residents can respond.
5. Wait for the law. Watch Magyar Közlöny and NAV for the final text and the start date.

Foreign nationals should ask one extra question. The announcement does not say whether KATA eligibility changes for third-country nationals on a family permit or another residence status. If you are self-employed on a family permit, my guide to self-employment on a family permit explains the registration side. Then check KATA eligibility for your own status with an adviser.

Related Reads and Helpful Resources

Three posts sit in the same cluster as this one.

• Can You Be Self-Employed on a Family Permit in Hungary? covers registering as an egyéni vállalkozó, the step before any KATA question.
• Tax ID Hungary 2026: A Guide to the T34 Form walks through getting the tax number every self-employed person needs.
• Hungary Tax Rules for Airbnb, Couriers and Crypto shows how Hungary taxes other kinds of side income.

For the official text, read the government’s own announcement on kormany.hu and check current rules at NAV.

FAQ

Is KATA coming back in Hungary in 2027? The government has proposed it, but it is not law yet. On 6 October 2026 it put a draft into public consultation that would reopen KATA to part-time entrepreneurs, pensioners and university students from 2027. Parliament still has to pass it, and the details may change first. Until a law is published in Magyar Közlöny, today’s KATA rules apply.

What would the new KATA cost per month? Under the draft, full-time KATA taxpayers would pay HUF 100,000 a month and part-time taxpayers HUF 50,000. The government also proposes a transitional HUF 75,000 monthly amount in 2027 for full-time taxpayers who invoice only individuals, rising to HUF 100,000 in 2028. These are proposed figures, not final ones. Confirm them against the final law before budgeting.

Could KATA taxpayers invoice companies again? Yes, under the draft. KATA businesses could invoice companies and other organisations, and that income would carry a 15 percent tax, with fixed KATA payments credited against it. The government’s example says a full-time taxpayer earning up to HUF 8 million a year from companies would pay only the fixed HUF 100,000 monthly amount. This is a proposal, not current law.

What is the new KATA revenue limit? The draft raises the annual revenue limit from HUF 18 million to HUF 22 million. That is the ceiling on what a KATA taxpayer could earn in a year under the proposal. It is not yet in force. The government has not made it law, so keep using the limit that applies to you today until parliament votes.

Can I lose KATA if I have one big client? Possibly. Telex reports that you could lose KATA status if more than half of your annual income comes from one payer, including related companies. The aim is to stop disguised employment. I have not confirmed this rule in the draft text, so read the draft or ask your accountant before you rely on it.

Autumn Admin, Again

October always brings the same mood in Hungary. The vines are done at the winehouse, the evenings close in, and everyone starts thinking about next year’s taxes. This year the thinking comes with a real question mark attached. If the KATA draft survives consultation, 2027 could look very different for freelancers. If it does not, we will all adjust again. Either way, I will update this post when the law appears. For the full field guide to working for yourself in Hungary without the nasty surprises, my ebook walks through every step I learned the slow way.