Expat Lawyers in Hungary - Relocation, Tax & Employment

Holistic approach

• Employee agreements covering all employment law aspects of the international assignment lifecycle in the relevant jurisdiction from initial assignment through to termination;
• Application for the required permits to reside and work in the country, both for expats and their family members; 
• Expat agreements concerning all employment related aspects, such as relocation to the country of origin;
• Termination of the expat agreement or international assignment services agreements;
• Mobility policies; 
• International assignment services; 
• Termination of international assignment services agreements; 
• HR data protection requirements; 
• Applications for tax benefits for expats; 
• Elaborating tax provisions of the assignment agreement.
• PE analysis and tax effects of the economic employer concept;
• Setting up and reviewing tax equalization policies;
• Advising on Hungarian tax compliance obligations;
• Advising on the practical aspects of obtaining supplementary private healthcare for expats and their family members;
• Advice for specialist sectors, e.g. advising on the tax position of participants for short-term stays in the film industry;

• Registration of the employer at the Hungarian Immigration Services;
• Advising on salary splits and employee benefits;
• Advising on tax implications of relocation related benefits (housing, travel, school fees for children, etc.);
• Employers’ tax obligations, multi-state wage and income tax returns; 
• Recommending payroll service provider and coordination; 
• Advising on the applicable pension scheme; and
• Analysis of the applicable social security treatment regarding the assignment and the consequences thereof. 

Fun fact

Did you know that Government Decree 450/2024 (XII. 23.) amended the detailed rules of Act XC of 2023 on the Admission and Residence of Third-Country Nationals, establishing rules on the employment of guest workers in Hungary. Separately, Decree NGM 51/2024 (XII. 23.) of the Minister for National Economy sets the annual cap on residence permits for employment purposes and guest worker residence permits.

Under Annex 1 of the Government Decree, from 1 January 2025, citizens of Georgia and Armenia may be employed in Hungary under these permits. Nationals of other third countries may also qualify if their country maintains an officially recognised organisation or office in Hungary that commits to ensuring its nationals leave Hungary in the event of non-compliance with Hungarian and EU admission and residence laws. Pursuant to Notice 2/2025 (I. 9.) of the Ministry of Foreign Affairs and Trade, the Republic of the Philippines meets these conditions, making Filipino nationals eligible for both permit types.

The Decree of the Minister for National Economy caps the combined number of residence permits for employment purposes and guest worker residence permits at 35,000 for 2025, issued through a combined application procedure. The annual cap may not exceed the average number of vacancies in the year preceding publication of the Decree, as measured by the Hungarian Central Statistical Office.

These nationality and headcount restrictions do not affect other legal grounds for residence in Hungary.

References

• Agoda
• Merlin & G.E.
• Techniques International Hungary
• SRF
  Assistance in applying for residence and work permits regarding four employees (other work besides expat/immigration: Corporate, Real Estate).
• Baker Hughes
  Assistance in applying for residence and work permits regarding 10 employees (other work besides expat/immigration: Employment, Corporate, Real Estate).
• Apollo Tyres
  Advice on various immigration matters (other work besides expat/immigration: Real Estate, EPC, Employment, Corporate).
• Samsung Electronics
  Advice on various immigration matters (other work besides expat/immigration: Employment, Data protection, Litigation, Commercial).
• Nissho
  Advice on various immigration matters (other work besides expat/immigration: Employment, Corporate).
• Johnson & Johnson
  Advice on various immigration matters (other work besides expat/immigration: Competition, Regulatory, Employment, Public Procurement, Corporate, Litigation, Data Protection, Tax).
• Kienle + Spiess
  Assessment of tax residency and social security implications of a Japanese national becoming the managing director of a Hungarian company.
• Honor 
  Advice on various immigration matters including detailed review of tax implications of non-EU secondments to Hungary, dual employment, PE risks etc. (Employment, Corporate, Tax).