EU nationals enjoy the freedom of movement within the European Union. This means that they can work in Hungary without a work permit. However, there are still some administrative tasks to perform before an EU national can start working at your Hungarian company.
Getting registered in Hungary
EU nationals may stay in any other EU member state for up to 90 days in any period of 180 days. They are required to register their stay only after their 90 days are up, more precisely, on the 93rd day of stay at the latest.
However, if an EU national is moving to another EU country for work, it is assumed that their stay will be longer than 90 days, so they have to register before they can start working. Since this is not a permit, just a registration, it is handled immediately, and you do not have to wait months, unlike in the case of work permits. You will still have to wait until the certificate is issued (and mailed), though, so make sure to get your employee registered well before they are supposed to start working for you.
To obtain the EEA registration certificate (often referred to as an EU registration card), your employee will need the following documents:
- EU identification document (can be an ID document or a passport)
- Proof of address in Hungary
- Proof of health insurance
- Signed labor contract
As a side note: obviously, the EU registration card is available not only for employment, but also for studies, business setup, family unification, or any other purpose. You just need to provide the appropriate supporting documents upon submission.
Taxes and social security
Your EU national employee will need to pay taxes on their Hungarian income. These taxes are the personal income tax (15%) and the social security contribution (18.5%). Every employment relationship in Hungary must be reported to the tax authority, and to do that right, your employee will need a Hungarian tax number and a Hungarian social security number (as well as a Hungarian tax ID card and a Hungarian social security card). These are issued separately, by separate authorities.
Additionally, one person may be insured under social security only in one EU member state at the same time. This means that your EU national employee may need to switch from being insured in their home country to being insured in Hungary.
Cross-border commuters
It might happen that your EU national employee will want to work for your Hungarian company without moving to Hungary. That is possible, but then special rules will apply to them. As a rule of thumb:
- Income tax and social security payments should be made in Hungary
- Other taxes and residency rules apply according to where they live
Ask for assistance
Helpers Hungary has 20 years of experience supporting foreigners living, working, and doing business in Hungary. We offer assistance not only with work permit applications, but also obtaining the EEA registration certificate and every other document that is required for you to employ an EEA or EU national at your Hungarian company.
Contact us now, and discuss your plans and needs with one of our experts.
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