What is Holding Period 2?

You can withdraw assets at the end of the third year, which is the end of Holding Period 1. By declaring your intent between December 1^st and 30^th, you can make partial or full withdrawals on January 1^st.

You can modify your declaration multiple times during this time. A new declaration overrides the previous one. If the assets requested for withdrawal are not available on December 31, the requested withdrawal will not be executed, and the assets will remain in the TBSZ. For the returns of the amount withdrawn, you will be liable to pay 10% personal income tax. TBSZs opened after 2024 December 31 are subject to an additional 8% social contribution tax ("szochó")…

Holding Period 1 is a 3-year period that starts in the calendar year following the collection year, beginning on January 1.

If you break the account during this time, you will be required to pay the standard 15% personal income tax on your returns. If your account was opened after 2024 December 31 you will also be required to pay the standard 13% social contribution tax ("szochó") on your returns…

"Tartós Befektetési Számla" or Long-term Investment Account is abbreviated as TBSZ. Its most significant advantage is that after 3 or 5 years respectively, the personal income tax burden on investment returns will be reduced to 10% or 0% from the standard 15% - when realizing the yield.  If your account was opened after 2024 December 31 your social contribution tax burden will also be reduced to 8% or 0%…

You will need to pay 13%, 8% or 0% Social Contribution Tax ("szochó") on the return from partially or fully withdrawn assets. 13% - if the account is terminated during the contribution year or the first 3 years. 8% - at the end of the third year, ergo at the end of Holding Period 1, as well as when the TBSZ account breaks during the 4th or 5th year. 0% - if the TBSZ matures at the end of the 5th year, ergo at the end of Holding Period 2…