Hungarian workers are highly sought after by companies operating in the European Union. With the rise of digitalization and teleworking, Hungarian workers can now work from home, even in Hungary, for companies based in Germany, the Netherlands, Belgium, France or any other European Union country.
Of course, the nature of the work determines to a large extent which are the most suitable options for employing a Hungarian worker. These are typically:
- registering a foreign company as an employer in Hungary.
- establishing a subsidiary or branch.
- contracting agreement
Registering a foreign company as an employer in Hungary
If a foreign company wants to employ one or two people in Hungary, the best solution is to be registered as an employer in Hungary and then a Hungarian person can be employed with an employment contract. In this case, you must comply with Hungarian labor law and pay taxes and contributions connected with the employment in Hungary.
The calculator below will help you estimate the approximate cost of having a Hungarian employee.
This is a simplified calculation that does not take into account the specificities of the employees, the tax allowances available, etc. Let us know if you need an accurate calculation. We will prepare the first calculation free of charge.
If you have not yet found the employee you need, contact us and our partners will help you find the right person.
Establishing a subsidiary or branch
If you want to employ more people, you may want to set up a subsidiary in Hungary. In this case, the people will be employed by the Hungarian subsidiary and their salaries will be paid by the subsidiary. Financing is provided by the parent company by ordering services from its Hungarian subsidiary.
If you are not sure if this is the right choice for your business, contact us and we may be able to help you with a free one-hour consultation.
Contractual agreement
If you want to employ a freelancer with a contractual agreement, you need a suitable contract. However, it would be worthwhile reflecting upon whether an inspection by the Hungarian tax authority might not consider the contract to be an employment contract and whether the tax authority might not find a tax deficiency due to unpaid employer’s taxes and contributions and the taxes and contributions not deducted.
You should consult a tax lawyer about the contracts.
