The aim of the smart village indicator system is to compile all the relevant and available indicators, which could approximate or measure the level of smartness in rural villages.

Though many difficulties arise from direct data collections, mostly indirect indicators are suggested to be applied. Sources of indicators are threefold: either coming from official sources (such as the Hungarian Central Statistical Office or the National Spatial Information System for Hungary etc.), or originated from non-survey type unofficial data collections (referred as innovative sources), or self-reported by municipalities.

The structure of the indicator system follows the general idea of grouping smart indicators, namely covers the thematic subgroups of smart economy, smart governance, smart living, smart environment, smart people and smart mobility. Each subgroup is then represented by indicators possible to be collected both from official and from innovative sources.