Contractors in Hungary can be set up as Employees.
Tax year – The tax year is the calendar year for individuals.
Immigration – Citizens of the EU or the EEA do not need a work and residence permit. Foreign citizens (who are not EU or EEA citizens, now includes UK nationals) must obtain a work permit in order to perform activity as an employee.
Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions
Registration – A tax ID and social security number (TAJ) is required for all candidates. We can assist with the application process for foreign citizens. The tax ID and the TAJ takes 2 to 5 weeks. Several forms have to be filled and signed. The registration needs to be completed before the first day of work.
Contract – A standard Hungarian employment contract will be issued to the candidate.
Employers social security – contributions are 17% of the gross salary with no income ceiling.
Employees social security – contributions are 18.5% for social insurance.
Tax – Income tax is a flat rate of 15%.
Benefits – Each calendar year, an employee is entitled to receive at least 20 working days of paid annual leave. The amount of days can vary depending on age and children.