Is your Hungarian company a subsidiary or an affiliate of a foreign business? If yes, and if you want to bring employees to Hungary, they will have an extra work permit option: the Intra-Corporate Transfer. It is available only for 3 years, but otherwise it has less restrictions than other permits.
Other work permits vs. the Intra-Corporate Transfer
Hungary offers various types of work permits to third-country nationals who want to live and work in Hungary. Each permit offers different perks (e.g. the option for family unification or permanent residency), while they have different restrictions (e.g. nationality, qualifications, salary). The main benefit of the residence permit for Intra-Corporate Transfer (ICT) is that there are no special requirements while it offers all the perks. The main restriction is that it cannot be extended beyond 3 years.
Main benefits of ICT
- No strict restrictions on nationality, qualifications, or salary
- Allows family unification
- Not excluded from permanent residency
Requirements for ICT
The main difference between Intra-Corporate Transfer and other work permits that an employee on ICT will remain on payroll at the sending company. As a result, before choosing this permit, make sure to ask for tax advisory for this employee to see how and where they will need to pay taxes after they foreign income while living in Hungary. The rule of thumb is that a person becomes a tax resident in Hungary if they stay in Hungary for more than half of their time, which is defined as more than 183 days within a 365-day period. At the same time, Hungary has double taxation agreements in place with several countries around the world to prevent paying taxes twice on the same income, and these should be checked before making a decision. Of course, Helpers can assist with this too.
Intra-Corporate Transfer will be available to your foreign employee if the following conditions are met:
- Your Hungarian company and the foreign sending company belong to the same group of companies.
- The employee has been working for at least 3 months at the sending company at the time of application.
- The employee needs to be qualified for the position at your Hungarian company.
- Their salary must be in line with Hungarian market salaries for their position.
Permanent residency and ICT
The Hungarian residence permit for Intra-Corporate Transfer is designed as a temporary measure, which is best reflected in how the employee remains on payroll at the sending company and how the permit itself cannot be extended after 3 years. As a result, employees holding an ICT work permit cannot simply apply for permanent residency, since their permit will expire just when they would become eligible.
At the same time, ICT is not excluded from permanent residency. This means that years spent in Hungary on an ICT work permit may be counted towards permanent residency (which requires at least 3 years in Hungary), but for the employee to be able to apply, they will need another work permit also eligible for PR.
When to choose ICT for your foreign employee in Hungary?
Intra-Corporate Transfer is available only between affiliate companies and only for 3 years. If leaving your employee on payroll at the sending company while they are working at your Hungarian company, ICT might be an ideal solution for you. To sum up the requirements and perks:
| Other work permits | ICT |
Employee will be on payroll | at the Hungarian company | at the sending company |
Employee has been working for the sending company | N/A | for min. 3 months |
Employee must be appropriately qualified | yes | yes |
Salary must be in line with the Hungarian market | yes | yes |
The sending and receiving companies must be related | N/A | yes |
Permit validity | may be extended | up to 3 years |
Family unification | depends on type | available |
Permanent residency | depends on type | not excluded |
Helpers Hungary offers assistance with all kinds of residency and work permit applications relevant to Hungarian companies. Our services include everything from the initial consultation on which permit would suit you and your employee best to support through the entire application procedure. Should you need help, feel free to reach out to our team of experts.
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