Work permit procedures in Hungary

There are various methods for bringing foreign work force to Hungary. The main factors that determine which procedure you need are the employee’s nationality and the employer’s person.

Regardless the procedure, your employee will need the following:

  • Identification document (ID card or passport)
  • Registered address in Hungary
  • Health insurance or social security
  • Documents verifying qualifications (e.g. university degree)
  • Signed labor contract or a letter of intent

In the default case, your employee will work directly for your Hungarian company, which might be the Hungarian subsidiary or branch office of your company. In this case, the main question is whether your employee is a citizen of the EU or not.

A. EU citizens need only a registration card

In the EU, work force can move freely. As a result, EU citizens basically need only a registration card and a registered address to start working in Hungary. The procedure takes only a few days. The following will be needed:

  • EU identification document (ID card or passport)
  • Registered address in Hungary
  • Health insurance
  • Signed labor contract

To start working for a Hungarian company, any employee needs to be integrated in the Hungarian social security and taxation system. Accordingly, they will also need a Hungarian social security number and a tax number.

B. Third-country nationals need a work permit

Anyone who is not a citizen of the EU needs a combined residence and work permit in order to stay and work in Hungary. The procedure typically takes up to 70 days, so you should keep this in mind when planning your activities. For a successful application, your future employee will need the following:

  • Identification document (passport)
  • Registered address in Hungary
  • Travel insurance
  • Documents verifying qualifications (e.g. university degree)
  • Letter of intent or preliminary labor contract

To start working for a Hungarian company, any employee needs to be integrated in the Hungarian social security and taxation system. Accordingly, they will also need a Hungarian social security number and a tax number.

The work permit will be valid for 2 years, after which it can be easily renewed if the employment relationship still exists. In case you and your employee part ways, the work permit will be revoked, and issued again only if your employee finds a new employer.

The family members of your future employee can also become Hungarian residents. The process is called “family unification”, and can typically be started after the main applicant has received their work permit. The main applicant’s spouse and underage children (younger than 18 years old) can apply. Their residence permit will be valid as long as the permit of the main applicant.

C. Intra-corporate transfer

If an international company has a subsidiary or a branch-office in Hungary, employees may be transferred to the local company with a work permit valid for intra-corporate transfer. In this case, you will be able to keep your employee on payroll of your foreign company, but you may need to consult a tax advisor to make sure taxation options are optimized, and you and your employee do not pay double taxes.

This process is available for third-country nationals and typically takes 60 days. The work permit will be valid for 3 years. Since it is a temporary permit, it cannot be renewed, but a regular work permit may be requested in case the employee stays in Hungary and is employed by the local subsidiary. In case you and your employee part ways, the work permit will be revoked.

The family members of your employee may also get residency in Hungary. The process is called “family unification”, and can typically be started after the main applicant has received their permit. The main applicant’s spouse and underage children (younger than 18 years old) can apply. Their residence permit will be valid as long as the permit of the main applicant.