Business · Companies · 1 hr ago
Spar challenges Hungary’s special tax on foreign supermarket chains
Austrian supermarket group Spar has filed a complaint with the European Commission over a special tax in Hungary, where it runs hundreds of stores.
Foreign supermarket chains pay a tax of 4.5% of annual sales, while the rate for Hungarian retailers is capped at 0.15%.
Spar is Hungary’s second-largest food retailer, after Lidl.
The tax was introduced under former prime minister Viktor Orban, and the new government led by Peter Magyar has kept it.
Large retailers can reduce their tax by splitting into smaller companies, but Spar says this is not practical for its Hungarian business.
The tax could cost Spar up to €90 million this year, in addition to about €40 million from state limits on retail margins.
The European Commission has already taken Hungary to the European Court of Justice over the measures, but no outcome is stated.
Austrian retailer Spar has filed a complaint with the European Commission over Hungary’s special tax on foreign supermarket chains.
Foreign chains pay a tax of 4.5% of annual revenue, while the rate for domestic retailers is no more than 0.15%.
Spar estimates the special tax could cost it up to €90 million this year, in addition to about €40 million from state-imposed limits on profit margins.
The tax was introduced under former Prime Minister Viktor Orban and retained by the government of Prime Minister Peter Magyar, which added an exemption for large retailers that split into smaller companies.
Spar says splitting its Hungarian business, which has hundreds of stores, into hundreds of companies is not practical.
- Who
- Austrian retailer Spar and the Hungarian government.
- What
- Spar has complained to the European Commission about Hungary’s special tax on foreign supermarket chains.
- When
- The complaint was reported on Monday, 12 October 2026.
- Where
- Hungary.
- Why
- Spar says the tax burdens foreign chains far more heavily than domestic retailers and accuses Hungary of seeking to push foreign chains out of the market.
Spar
Hungarian government
Tax treatment
Spar
Spar says foreign chains must pay 4.5% of annual revenue, while domestic providers pay no more than 0.15%.
Hungarian government
The government retained the special tax and introduced an exemption allowing large retailers to reduce their tax burden by splitting into smaller companies.
Policy impact
Spar
Spar says the exemption is not practical for its business and calls the arrangement absurd and harassment.
Hungarian government
The government’s stated reason for retaining the tax is Not stated.
The regulation is absurd and harassment.
Hungary introduced the special tax on foreign supermarket chains.
The new government retained the tax and created an exemption for large retailers that split into smaller companies.
Spar’s complaint to the European Commission was reported.
- Foreign-chain tax
- 4.5% of annual revenue
- Domestic-retailer tax
- No more than 0.15%
- Potential Spar special-tax cost
- Up to €90 million this year
- Additional cost from margin limits
- About €40 million
- Spar’s position in Hungarian food retail
- Number two after Lidl
Sources
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