How will Swiss–Hungarian tax and social security rules affect people in 2026?

What new rules apply to the Swiss–Hungarian double taxation agreement from January 2026?

The purpose of the bilateral tax treaty (Doppelbesteuerungsabkommen, DBA) is to avoid double taxation (Vermeidung der Doppelbesteuerung), ensuring that the same income is not taxed by both countries.

The agreement is undergoing ongoing modernisation, and the international trend is to incorporate anti-abuse rules. The OECD BEPS Action Plan (Base Erosion and Profit Shifting) sets minimum standards, which typically also include a clause designed to prevent abusive exercise of rights.

Important transparency limitation: the verified source material underlying this article does not include a separately URL-verified reference confirming exactly when the amending protocol to the Swiss–Hungarian DBA entered into force and from which date its provisions must be applied. Therefore, these specific dates are not stated here as facts.

Anyone who needs to pay tax between the two countries in 2026 should clarify this issue based on current official notices from the Nemzeti Adó- és Vámhivatal (NAV) and the Swiss Eidgenössische Steuerverwaltung (ESTV), preferably with the involvement of a tax advisor.

As a general rule under DBA systems, the country of residence (tax residency) and the country in which the income arises share taxing rights. The double burden is relieved through a tax credit or exemption. The specific rule depends on the type of income, such as employment income, pensions, dividends or income from real estate.

How can a secondment and an A1 certificate be arranged through the ALPS system?

A secondment (Entsendung) means that a Swiss employer temporarily sends an employee to another country, such as Hungary or another EU Member State. During this period, the employee may remain covered by Swiss social security.

The A1 certificate (Bescheinigung A1), also known as a Certificate of Coverage (CoC), serves as proof of this. It confirms under which country's system the employee is insured, thereby avoiding double social security contributions.

The application is submitted not by the employee but by the employer to the competent Swiss compensation office (Ausgleichskasse). It is submitted electronically through the ALPS online system (Applicable Legislation Platform Switzerland).

The process generally involves the following steps:

1. The employer logs into the ALPS platform.

2. They enter the details of the secondment, such as the destination country, the duration and the employee's details.

3. The competent Ausgleichskasse assesses the application.

4. If approved, the A1 certificate is issued.

The maximum duration of a secondment and the coverage conditions are based on EU coordination rules. Eligibility is assessed in each case by the competent compensation office. It is therefore advisable to confirm the precise 2026 time limits and conditions with the office.

What about full remote work?

A clear, source-verified rule applies in this case. If someone works temporarily across borders on a fully remote basis, Swiss social security jurisdiction may be maintained for a maximum of 24 months.

This requires compelling personal reasons, such as medical treatment or caring for a relative. In other words, convenience or simply wanting to work from home is not sufficient.

The authorities do not permit extensions beyond 24 months. This is expressly stated in a Swiss federal social security notice (among the sources). Therefore, for anyone planning to work permanently and fully remotely from Hungary for a Swiss company, the applicable social security jurisdiction may change after the 24th month.

How can Swiss family allowances be paid for a child living in Hungary?

Family allowances (Familienzulagen) include child allowances (Kinderzulagen) and education allowance (Ausbildungszulage). In certain cases, EU coordination rules allow a parent working in Switzerland to receive benefits for a child living abroad – including in Hungary (Kinder mit Wohnsitz im Ausland).

The general framework for entitlement is as follows. See below for the specific amounts and thresholds, subject to editorial verification:

• If both parents work in different countries, EU coordination determines the country with primary payment responsibility and the country responsible for supplementary payments.

• If the other country is the primary payer, Switzerland may only pay a differential allowance (Differenzzulage), if the Swiss amount is higher.

• Entitlement is generally subject to a minimum annual income threshold.

Important limitation: the verified source material for this article does not include separately URL-verified information on the specific income threshold for 2026, the exact calculation of the differential allowance, or whether birth and adoption benefits can be exported. These are therefore not provided here as specific figures.

Individual entitlement and the procedure are assessed in every case by the competent fund (Ausgleichskasse). The matter should be clarified with the employer’s HR department or the cantonal compensation office, with documentation of the child’s Hungarian address and the other parent’s Hungarian benefits.

How do family allowance amounts differ between cantons in 2026?

The short answer: family allowance amounts in Switzerland vary significantly by canton. Federal law (Familienzulagengesetz, FamZG) sets minimum amounts, which cantons may supplement with higher benefits.

Therefore, figures from a single canton cannot be used to draw conclusions about the entire country. The allowance amount is always determined by three factors together:

• the canton in which the entitled person lives or works;

• the number of children for whom the benefit is paid;

• the type of allowance: child allowance or education allowance.

Transparency note: the verified source material for this article does not include separately URL-verified amounts for 2026, either for the federal minimum or for individual cantons – such as Zürich, Aargau, Graubünden and Valais. These specific CHF amounts are therefore deliberately not stated here as facts, as an inaccurate figure could be further distorted through AI-generated citations.

The precise current amounts by canton are provided by the cantonal compensation office and by the information on the federal social insurance portal, ahv-iv.ch. Following editorial verification, the article may be supplemented with a table by canton.

What can still be said today is that the education allowance – for older children in education, generally over the age of 15 – is usually higher than the basic child allowance. Cantons with higher living costs or different social policies may exceed the federal minimum.

What AHV and EO changes are expected in Switzerland in 2026?

AHV (Alters- und Hinterlassenenversicherung) is Switzerland’s state old-age and survivors’ pension system. EO (Erwerbsersatzordnung) is the income replacement benefit system, for example in cases of military service, maternity or paternity.

Two developments are emerging for 2026, but both must be confirmed on the basis of official information from the compensation fund:

• The introduction of the 13th monthly AHV pension payment, with the first payment expected by the end of 2026. This affects pensioners and may also be relevant to people covered by future Hungarian–Swiss pension coordination.

• The full digitalisation of applications for EO income replacement benefits, simplifying administrative procedures.

Transparency note: the verified source set for this article does not separately support the exact entry-into-force dates and detailed provisions of these two changes with URL-verified references. They are therefore presented here with reservations, and editorial verification is a condition of publication.

The key point for those affected from Hungary: for anyone who has paid Swiss AHV contributions, entitlement is calculated based on the coordination of the Hungarian and Swiss pension systems. Individual entitlement is determined by the competent fund.

Sources

• ahv-iv.ch – Information on Familienzulagen

• admin.ch – Federal social insurance notice (remote work, jurisdiction)