Detailed comparison
| Side-by-side comparison of taxation, cost of living and scores between the two countries. |  France | |
|---|---|---|
| Taxation | ||
| Dividend tax | 31.4% | 28%, Edge to this country |
| Capital gains tax | 31.4% | 15%, Edge to this country |
| Corporate tax | 25% | 9%, Edge to this country |
| Wealth tax | Yes, IFI (real estate only) | None |
| Direct inheritance | 45%Scale5-45% | 0%, Edge to this country |
| Cost and real estate | ||
| Monthly FIRE budget | €2,700 | €1,850, Edge to this country |
| Cost-of-living score | 38.5 | 72.2, Edge to this country |
| Reference city | Paris | Budapest |
| City-center 2-bed rent | €2,450 | €750, Edge to this country |
| Safety and FIRE score | ||
| Insecurity | 2.0 | 1.5, Edge to this country |
| FIRE Ultimate V3 score | 64.6 | 94.3, Edge to this country |
Verdict
- Hungary wins on long-term capital: a €1 million portfolio generating €40,000 a year pays €6,000 outside the TBSZ (15% with no szocho) and zero in a TBSZ held five years, against €12,560 in France under the flat tax, with no wealth tax and no inheritance tax in the direct line.
- France keeps the edge on currency stability (the euro against a volatile forint), the depth and accessibility of its public healthcare system, and a stronger school standard on PISA results.
- Verdict: Hungary for patient investors able to lock their holdings in a TBSZ for five years and absorb the forint's volatility, France for those who prize currency stability and public services.
Frequently asked questions about this duel
Is Hungary taxed less than France on capital?
Yes, clearly. Outside the wrapper, Hungary applies a flat 15%, and gains via a regulated broker escape the szocho, against the French flat tax of 31.4%. Above all, the TBSZ account fully exempts gains after five years, where France taxes each gain. Hungary has no wealth tax and no inheritance tax in the direct line.
Is inheritance lighter in Hungary than in France?
Yes in the direct line. Hungary fully exempts, at 0%, transfers in the direct line and to the spouse, against a French scale that can reach 45% above the €100,000 allowance per child. The gap is major for passing on a family estate.
What is Hungary's main risk against France?
The currency. The forint floats with volatility of about 8% a year and stays sensitive to political cycles, whereas income in euros is by nature stable on the French side. A bad currency year can erase part of the tax advantage. Keeping part of your holdings in euros and favoring the TBSZ limits this exposure.