Understanding the insurance obligations for third-country nationals employed in Hungary can be complex. Here’s a simplified breakdown to help clarify the rules. What is a Third-Country National? Under Hungary’s Social Security Act (Act CXXII of 2019), a “third-country national” is someone from a country outside the European Economic Area (EEA) and not covered by a […]
The Hungarian Company Register is an official database that contains comprehensive information about companies registered in Hungary. It is maintained by the Hungarian Ministry of Justice and serves as a vital resource for anyone who needs to verify company details, assess business partners, or conduct market research. The Hungarian Company Register, known locally as the […]
Managing accounting effectively is a vital part of running a business, and it becomes especially important when operating in a foreign country like Hungary. The country has specific accounting standards and tax regulations that companies must adhere to in order to stay compliant. This article explores the essential aspects of accounting in Hungary, the common […]
Many of our clients have encountered situations where their Hungarian-registered company also conducts economic activities through a related foreign branch. If a Hungarian company generates profits at a foreign branch, corporate tax typically needs to be paid abroad according to the relevant foreign regulations on the income earned by the foreign branch. However, to avoid […]
According to EU regulations, the general rule is that insurance obligations arise in the country where the individual performs their activity. If the work is carried out exclusively in Hungary, the insurance is also established in Hungary. As a result of the Hungarian insurance relationship, there is an exemption from insurance obligations in other EU […]
According to the Civil Code, the management of the company is performed by the executive officer, who can do so under a mandate or employment relationship according to the agreement with the company; that is, the executive officer can perform their duties either as an employee or under a mandate. If a member of the […]
For those coming from outside the European Union who wish to settle in Hungary, access to healthcare services can be an important question. Both the state healthcare system and the primary care system offered by private insurers are available for choice. A significant difference between the two is that private hospitals are only authorized to […]
While many professional articles discuss the personal income tax and social security status of workers sent to Hungary from other countries, the notification and registration rules for these workers are often overlooked. This article highlights two key notification obligations for posted workers. Notification Obligation to the Tax AuthorityThis is not a new requirement, and non-compliance […]
This article outlines the statutory provisions regarding the social security status of foreign performing artists and guest lecturers, including those excluded from insurance coverage. Insurance ExclusionsUnder Section 17, Paragraph (1), Point d of Act CXXII of 2019 on Social Security Benefits and Coverage (Tbj.), insurance does not extend to individuals covered by Section 1/B of […]
The legal provisions regarding the payment of social security contributions (tb-járulék) and social contribution tax (szocho) for third-country nationals employed in Hungary contain special rules. Third countries are defined as those that are not part of the European Economic Area and do not have a social security agreement with Hungary. Examples of such countries include […]
