The Hungarian becomes Liverpool's second signing of the summer, after Alexis Mac Allister joined from Brighton, and adds extra quality and depth to Jurgen Klopp's midfield and forward options.
22-year-old Szoboszlai has signed a five-year deal at Anfield.
Jurgen Klopp reportedly views the former Red Bull Salzburg star as a multi-functional player who offers tactical flexibility, making him a more viable alternative to Chelsea’s Mason Mount, in whom they were interested as he entered the final 12 months of his contract but had proved to be a more expensive option which involved less straightforward negotiations.
Szoboszlai scored five and assisted a further eight in the Bundesliga last season, similar figures to the season prior (6G, 8A), so will provide some more attacking impetus to an already attack-minded side.
The new signing told the club website; "I'm happy and I can’t wait to get started.”
“(A) really historic club, really good players, good coach, everything is good. For me it was perfect to make the next step in a club like this.
“The fans, the stadium, everything is really good.”