It’s an excellent opportunity for foreign companies to employ Hungarian workers that does not require company registration or the establishment of a company in Hungary. The foreign company receives a technical tax number that allows it to report payroll data. It is important to note, however, that this tax number does not entitle the company to claim VAT refunds, for example.
The employees are subject to Hungarian laws and their employment contracts have to be prepared in Hungarian (and English) in accordance with the Hungarian Labor Code. Gross salaries can be established both in forint or euro, but if the salary is set in euro, exchange rate fluctuations shall also be taken into account, as payroll calculations in Hungary can only be done in forint.
Other benefits and things to know:
- Administration does not require the company’s presence in Hungary.
- Salaries and contributions are paid by a deadline and pay-slips and other reports are sent in a secure, encrypted format.
- Fringe benefits, bonuses, per diems and cafeteria benefits can also be calculated using this method.
Interested in a simple solution for regular employment? Contact Us!
