What can SZÉP cards be used for? The most important things to know
The SZÉP card is a recreational-purpose fringe benefit subject to favourable taxation that gives employees the opportunity to use various services in the areas of leisure and entertainment. The card can be used in restaurants, hotels, wellness centres, spas and other venues of leisure activities.
The popularity of the SZÉP card is partly due to the favourable tax conditions, which make it an attractive fringe benefit for employers to offer their employees. For employers, the SZÉP card is a cost-effective way of increasing employee satisfaction, while for employees it offers a practical means of covering leisure expenses.
The card is issued by different financial institutions and its usability is determined by which hotels, restaurants or other service providers the bank has a contract with. As a result, there may be differences in usability between cards issued by various banks, so it is important to find out in advance which cards are accepted at a particular location. The process of using the benefit is relatively simple and, once their card has been activated, employees are free to decide how and where to use it, up to their annual limit.
SZÉP card changes: taxation and rules
In recent years, several changes have been made to the taxation of the SZÉP Card, especially during periods of emergency declared by the government. The SZÉP card rules have been constantly adapted to user needs; for example, there was an experimental period in 2022-2023 when it could be used to buy cold food, but this possibility has since been discontinued. As the rules for the use of the card may change from year to year, it is important that both employers and employees are aware of the potential tax burdens and benefits, as these will influence the strategy and effectiveness of the card’s use.
SZÉP card taxation in 2023
As of 1 January 2023, the three sub-accounts (also referred to as “pockets”) – accommodation, hospitality and leisure – have been merged, allowing cardholders to spend the full amount of their card from a single account. This change had made life much easier for users, as the previous category-based restrictions had been removed and the total balance could be used for any purpose.
The SZÉP card remained a cafeteria benefit of favourable taxation. The amounts added to the account by the employer were taxed as fringe benefits up to the annual recreational allowance, subject to 15% personal income tax and 13% social contribution tax. If the amount of the benefit provided exceeded the limit, it was taxed in the category of “certain specified benefits” and the tax payable on the excess amount was charged at the rate of 1.18 times.
Another significant change from 2023 was that amounts added to the SZÉP card balance but not used within a year were subject to a one-off charge of 15%. This change was introduced by the government on 15 October 2022 to encourage faster use. The fee was charged twice a year, on 20 March and 20 September. This provision encouraged employees to use the amount available to them more actively, thereby increasing consumption in certain sectors of the economy.
SZÉP card taxation in 2024
In 2024, SZÉP card taxation remained available to employers and employees under favourable conditions. Amounts provided as fringe benefits could continue to be added to the card balance subject to 15% personal income tax and 13% social contribution tax, provided they did not exceed the annual recreational allowance. The part above the limit was taxed in the category of “certain specified benefits,” subject to a tax rate of 33.04%.
The most significant change in 2024 was a further tightening of the time limit for use. Balances not used within one year continued to be subject to a one-off 15% charge twice a year, on 20 March and 20 September.
The most significant change compared to the 2023 rules was that, while it was still possible to buy cold food with a SZÉP card in 2023, this possibility was abolished as of 1 January 2024.
SZÉP card changes in 2025: New options and rules
The year 2025 will bring significant changes in the use and taxation of the SZÉP card. The new rules will expand the possibilities for use, while tax and administrative changes will also affect employers and employees.
The digitisation of the SZÉP card will begin. Cards issued after 1 January 2025 will be suitable for use on terminals, while the deadline for renewing cards issued before that date is 1 September 2025.
SZÉP card use from 2025: How and where to spend the balance?
The use of SZÉP cards will continue to expand in 2025. In addition to traditional recreational services, they can also be used for home renovation and for services related to active lifestyle. This means that cardholders will be able to use their cards to pay for gym passes, sports services and even some home maintenance purposes. The aim is to make SZÉP cards as widely usable as possible for the well-being and health of workers. The new rules could encourage users to think beyond spending on leisure or hospitality services and consider longer-term investments such as home renovation or health promotion.
SZÉP card sub-accounts 2025: New options
Under the new rules, a new sub-account called “Active Hungarians” is introduced in 2025, in addition to the previous single “general” sub-account, which will be available for specific purposes. According to preliminary information, the new system of benefits will be better adapted to the needs of employees, as recreation, home renovation and health care will be allocated in separate sub-accounts. This will ensure that the benefits available subject to favourable taxation are used in a targeted way by workers, while at the same time encouraging the development of specific sectors of the economy.
SZÉP card for housing renovations in 2025
In 2025, there will be a new opportunity to use the SZÉP card: up to 50% of the card’s balance can be spent on home renovation. This applies both to the balances available as of 1 January 2025, as well as to the amounts transferred by the employer during the year, until they are used up. The available amount can be used to buy a wide range of renovation-related products, including building materials, paints, hardware products, glass, lighting, furniture, household and craft items such as crockery and cutlery. The new rules are designed to allow workers to use this form of benefit for longer-term investments, not only to finance short-term recreational experiences but also to improve the quality of their housing.
SZÉP card for active lifestyle in 2025
From 2025, the SZÉP card balance will once again be available through multiple “pockets”, with a new option called the “Active Hungarians” sub-account added. The aim is to promote healthy, active lifestyle, for which employers can transfer up to HUF 10,000 per month to employees’ SZÉP cards. The amount received can be used exclusively for services related to sports and active recreation, such as the rental of sports equipment, tickets to swimming pools and sports facilities, ski lifts, exercise and other leisure activities. It is important to note that this amount is only available to the employee and cannot be used by family members with an additional card linked to the same account.
Total allowance for SZÉP cards in 2025: What is the maximum amount that can be used?
The maximum annual amount that can be added to the SZÉP card account will remain within the same limits as in previous years, but different rules will apply for each sub-account in terms of taxation and usability. Under the current proposal, the total annual recreational allowance will be capped at HUF 570,000, of which HUF 450,000 can be allocated to the general “pocket” and HUF 120 000 to the "Active Hungarians" sub-account. In addition, a maximum of 50% of the balance in the general sub-account may be used to cover housing renovation costs. The new rules will allow users to spend more flexibly, while the benefits provided in the different categories may provide different tax advantages for different sectors. This way, employers will have more flexibility in deciding how they want to support their employees.
SZÉP card taxation in 2025: Burdens and benefits
In 2025, there are no changes to the taxation of SZÉP cards compared to the 2024 rules. The SZÉP card will continue to be a fringe benefit subject to favourable taxation. Personal income tax and social contribution tax will be payable on the amounts provided by the employer, the rates of which have not changed compared to the previous year.
SZÉP card taxation from the employer’s perspective: What does it mean for companies?
For employers, the SZÉP card will remain a favourable cafeteria item, taxed as a fringe benefit. Amounts given as fringe benefits will continue to be taxed at a lower rate of 28% than income paid as wages, making it a cost-effective way for businesses to incentivise employees. However, the new tax regime may include some changes in administrative obligations and use options that companies will need to pay attention to.
The government’s aim is to simplify, allowing employers to provide the benefit with less administration. At the same time, the legislation aims to ensure that employees actually use the money they receive on their SZÉP card for recreational and health purposes. This will lead to stricter controls in some sectors, while in other areas of use the new rules may provide flexibility.
SZÉP card preferential tax treatment: How to make the most of it?
In order to get the most out of the SZÉP card benefits, it is worth planning ahead. One of the most important steps is to check the card-issuing bank’s website for a list of current locations of acceptance, as the places where the benefit can be used may change from time to time. It is also important to keep an eye on the rules for different sub-accounts to make sure there are no balances left unused.
If one is planning to use higher value services, such as longer wellness weekends or complex health services, it is worth checking with the provider in advance about payment options, possible advance payments or instalments. In some places, the different sub-accounts may be combined, which may provide even more flexibility.
Finally, it is important to remember that SZÉP card benefits are also subject to a time limit. It is worth planning ahead the use of the SZÉP card so as not to lose money and get the most out of it!
Payroll services for the correct taxation of SZÉP card benefits
As a trusted payroll service provider, Forvis Mazars pays particular attention to the optimal management of the administration and taxation of cafeteria schemes, including SZÉP cards. From 2025, the change in SZÉP card rules will bring significant challenges and opportunities for both employers and payroll companies.
With payroll services provided by the experts of Forvis Mazars, employers can save significant time and resources while ensuring that SZÉP card benefits are optimally managed under the new regulations. This will not only ensure legal compliance but also increase employee satisfaction, while allowing businesses to manage their available resources in a cost-effective way.