Work permits in Hungary
Hungary, a country with an actively developing economy and an attractive investment climate, is becoming an increasingly popular destination for foreign professionals. To work legally in Hungary, foreigners need to obtain a work permit.
1. Types of Work Permits
There are different types of work permits in Hungary, depending on the category of the foreign worker, the duration of the intended work, and the nature of the work activity. The most common types include:
| Work Permit Type | Description |
|---|---|
| Single Work and Residence Permit | Issued to foreign nationals planning to work in Hungary for more than 90 days. |
| EU Blue Card | Designed for highly qualified professionals, offering a longer period of stay and advantages like simplified extension procedures and family reunification. |
2. Documents Required
To obtain a work permit in Hungary, the following documents are required:
- Application form filled out in Hungarian or English.
- A valid passport and copies of all relevant pages.
- A labour contract with a Hungarian employer or a letter of confirmation of impending employment.
- Evidence of qualifications such as diplomas, certificates, and CVs.
- Health insurance for the entire period of intended employment.
- A certificate of no criminal record from the country of permanent residence or citizenship.
3. Submission Procedure and Processing Times
The application for a work permit is submitted through the Hungarian consulate in the applicant’s country of residence or directly to the Hungarian Migration Service if the foreigner is already in the country on other grounds. The application process can take from several weeks to several months, depending on the completeness of the submitted documents and the workload of the migration office.
4. Peculiarities of Employment in Hungary
Hungary offers foreign professionals many opportunities for professional development. However, it is important to note that some specializations may require additional qualification confirmation or recertification according to local norms and standards.
Who Can Work in Hungary?
Understanding who can work in Hungary requires an overview of local labour laws, immigration policies, and the taxation of foreign workers.
1. Employment Rights for EU and EFTA Nationals
Citizens of European Union (EU) and European Economic Area (EFTA) countries have the right to work in Hungary without the need for a work visa or permit. This is due to the principle of free movement of labour within the EU.
2. Work for Third-Country Nationals
Citizens of non-EU/EFTA countries must obtain a work visa and a work permit to be legally employed in Hungary. The process involves applying for a national D visa, which allows one to enter the country and start working while waiting for a decision on the granting of a residence permit.
3. Self-Employment and Entrepreneurial Activity
Hungary provides favourable conditions for self-employed persons and entrepreneurs, including foreigners. To start a business, it is necessary to register a legal entity or individual entrepreneurial status.
4. Tax Liabilities
Foreign employees are obliged to pay taxes on income earned in Hungary. The taxation system involves the payment of income tax, social security, and health insurance taxes. Hungary has concluded double taxation treaties with many countries, which can significantly reduce the tax burden on foreign professionals.
How to Apply for a Hungary Work Visa
Obtaining a work visa to Hungary is a key step for third-country nationals wishing to work in the country. Below is a detailed overview of the process of applying for a work visa, including the required documents and processing steps.
Step 1: Confirmation of Job Offer
The candidate must have a confirmed job offer from a Hungarian employer. The employer is obliged to prove that the vacancy cannot be filled by a citizen of Hungary or another EU/EFTA country.
Step 2: Collection of Necessary Documents
To apply for a work visa, you need to prepare the following package of documents:
- Completed visa application form
- A valid passport
- Two passport-size photographs
- Confirmation of a job offer from a Hungarian employer
- Documents confirming qualifications and work experience
- Certificate of no criminal record
- Health insurance covering the entire period of stay
- Proof of financial solvency
Step 3: Submitting an Application
The application for a work visa is submitted in person at the Hungarian consulate or embassy in the applicant’s country of residence.
Step 4: Interview
After submitting the documents, the applicant may be scheduled for an interview at the consulate. During the interview, consular officials verify the authenticity of the submitted documents.
Step 5: Waiting for a Decision
The processing time for a work visa application can vary but usually ranges from 1 to 4 months. During this time, the applicant must wait for notification from the consulate.
Step 6: Entering Hungary and Next Steps
After obtaining the visa, the applicant can enter Hungary. It will be necessary to apply for a residence and work permit, which is the next step in legalizing the status in the country.
Required Documents for a Hungary Employment Visa
Obtaining a work visa to Hungary is a process that requires careful collection and preparation of documents. Below is a detailed list of documents required to apply for a work visa.
| Document | Description |
|---|---|
| Foreign Passport | The passport must be valid for at least 3 months after the expected visa expiry date and contain at least two free visa pages. |
| Visa Application Form | A completed and signed visa application form. |
| Photos | Two recent passport size colour photographs that meet the visa photo requirements. |
| Confirmation of Employment | An official invitation from an employer in Hungary, including salary offer and length of contract. |
| Proof of Qualification | Documents confirming the applicant’s professional qualifications. |
| Certificate of No Criminal Record | A document confirming that the applicant has no criminal record in their country of citizenship. |
| Health Insurance | A health insurance policy covering the entire period of stay in Hungary. |
| Proof of Financial Solvency | Bank statements or documents proving sufficient funds to live in Hungary. |
| Consular Fee Payment Receipt | Proof of payment of visa fee, varying by country of application and type of visa. |
| Additional Documents | Additional documents may be required based on the consulate’s specific requests. |
Careful preparation of all necessary documents is important for a successful application for a work visa to Hungary. Applicants are advised to familiarize themselves with the requirements in advance and seek specialist advice to avoid mistakes and delays in obtaining a visa.
Where to apply for a Hungary work visa?
Obtaining a work visa to Hungary is an important process for foreign nationals who wish to work legally in this country.
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Hungarian embassies and consulates
The main place of application for a work visa is Hungarian embassies and consulates abroad. Applicants must apply at the Hungarian diplomatic mission in their home country or in their country of permanent residence. Depending on the particular embassy or consulate, the application process may vary slightly, but the general requirements and necessary documents remain standard.
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Visa Application Centres
In some countries, visa applications are accepted through specialised visa application centres that act on behalf of the embassy. These centres provide services for the acceptance of documents, their initial verification and transmission to the relevant consulate. Visa application centres may also offer additional services such as filling in application forms, taking photographs or assisting in the collection of documents.
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Online application systems
For some visa types, including short-stay tourist and business visas, applications can be submitted through online systems. However, at the time of writing, online application systems for work visas to Hungary are limited and most applicants must apply in person or through a visa application centre.
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Through the employer
In some cases, an employer in Hungary can take over part of the work visa application process, especially when it comes to preparing the documents required to prove employment. However, the applicant himself or herself must still apply in person at the consulate or visa centre.
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Need for pre-registration
Most Hungarian diplomatic missions require an appointment to submit visa documents. The appointment is usually made by telephone or through the online appointment system on the website of the respective embassy or consulate.
Applying for a work visa in Hungary requires careful consideration of the requirements and choosing the right place to apply. Hungarian embassies and consulates are the main institutions to start this process. It is important to prepare all the necessary documents in advance and clarify the application procedure at the chosen location to ensure timely and successful processing of the work visa.
Processing time for Hungary work visa
Applying for a work visa to Hungary is a multi-step process that involves preparing documents, submitting them and then waiting for a visa decision. Processing times can vary depending on a variety of factors, including the country of application, the completeness and accuracy of the information provided, and the workload of consular services. Understanding the timeframes will help applicants plan their travel and start working in Hungary.
1. Stages of application processing
Submission of documents: The first step is to submit a complete set of documents to the consulate or through a visa centre. This includes filling in application forms, submitting photographs, passport, qualification documents, criminal record certificates, health insurance and other required documents.
Consideration of documents: The application together with the documents is sent to the consular section for review. At this stage, it may be necessary to verify the information, request additional references or clarify the data.
Decision: After checking all documents and information, the consulate decides whether to issue a visa.
2. Standard processing times
The processing time for a Hungarian work visa application may vary, but the standard period is usually between 15 and 60 days. In some cases, such as when additional verification is required or during busy periods, the process may take longer.
3. Factors affecting processing times
Completeness of documents: The completeness and accuracy of the documents provided significantly affect the speed of application processing. Incomplete or incorrect documents may cause delays.
Seasonality: During peak periods such as summer months or festive seasons, processing times may increase due to the high volume of applications.
Individual characteristics of the applicant: The presence of previous visa irregularities, difficulties with data verification or the need for additional counselling may also increase processing time.
4. Recommendations to speed up the process
Early filing: It is advisable to file as early as possible, especially if your anticipated start date is approaching.
Document preparation: Careful preparation and review of all required documents prior to submission will help avoid delays.
Consultations with experts: Timely consultation with visa experts or lawyers can help you to correctly complete all necessary documents and answer questions from the consulate.
The processing time of a Hungarian work visa application depends on many factors. Proper preparation, complete and accurate completion of all required documents, and consideration of possible delays will help applicants to effectively manage their time and expectations during the work visa application process.
Taxes in Hungary for foreign workers
Hungary offers attractive conditions for foreign investors and professionals, making it an attractive place to work. However, as in any other country, foreign workers face tax obligations. Understanding the taxation system in Hungary will help foreigners plan their finances properly and avoid legal mistakes.
Main tax rates
In Hungary, the personal income tax (PIT) is set at 15%. This is a flat rate applicable to all income received by the taxpayer. In addition to PIT, employees are obliged to pay social security contributions, which amount to about 18.5% of income. These contributions cover health insurance, pension contributions and unemployment insurance.
Residency and taxation
Tax resident status in Hungary is determined on the basis of physical presence in the country for more than 183 days during any given tax year. Tax residents are taxed on worldwide income, which means that all income earned both in Hungary and abroad is subject to taxation in Hungary.
Non-residents are only taxed on income earned in Hungary. Determining residency status is important for understanding tax obligations and the potential need to declare foreign-sourced income.
Double taxation treaties
Hungary has concluded double tax treaties with many countries, which reduces the tax burden on persons receiving income from both Hungarian and foreign sources. These treaties ensure that income will not be taxed more than once by providing mechanisms to account for taxes paid abroad.
Tax benefits and subsidies
Hungary offers various tax incentives to stimulate certain economic activities, including investments in research and development and other entrepreneurial initiatives. Foreign workers employed in certain industries or involved in research projects may benefit from these incentives.
Filing a tax return
Foreign employees are obliged to file a tax return in Hungary if they are tax residents or have income subject to taxation in the country. The declaration is usually filed by 20 May of the year following the reporting period.
Understanding the taxation system in Hungary is an important aspect for foreign employees. Correct determination of tax residency, knowledge of the main tax rates and rules will help to avoid possible tax problems and optimise tax liabilities. It is recommended to contact a qualified tax advisor for detailed information and assistance on taxation in Hungary.
Minimum wage in Hungary
The minimum wage is an important public policy instrument regulating the income level of employees and ensuring a minimum standard of living. In Hungary, the minimum wage is set by the government and revised annually, which has a significant impact on both employees and employers.
1. The established amount of the minimum wage
For 2024, the minimum wage in Hungary is HUF 246,000 per month (approximately EUR 640) for unskilled workers. There is an increased minimum for skilled workers, which is HUF 322,000 per month (approximately EUR 835). These figures are mandatory for all employers and they are obliged to adhere to the standards set by the government.
2. Legislative regulation
The minimum wage in Hungary is regulated by the Labour Act, which prescribes that it must be paid to all employees, regardless of the industry and ownership of the employer. Violation of these rules entails legal liability, including administrative fines and other sanctions.
3. Impact on business
The establishment of a minimum wage has a significant impact on the business environment in Hungary. On the one hand, it guarantees employees a minimum level of income and stimulates consumption, which has a positive impact on the economy as a whole. On the other hand, for employers, especially SMEs, an increase in the minimum wage may mean an increase in labour costs.
4. Social and economic consequences
The minimum wage is an important element of social protection in Hungary. It aims at reducing poverty among the working population and ensuring a more equitable distribution of income. However, too steep increases in the minimum wage may lead to job losses, especially in low value-added industries.
5. Prospects and trends
The Hungarian government regularly revises the minimum wage in line with inflation, living standards and the economic situation in the country. In recent years, there has been a trend towards a moderate increase in the minimum wage, reflecting the government’s endeavour to maintain the purchasing power of its citizens.
The minimum wage in Hungary is an important element of the country’s economic and social policy. For businesses, this means the need to constantly monitor changes in legislation and adapt their business models to rising labour costs. At the same time, minimum wages contribute to social stability and maintain the living standards of workers, which in the long run creates a more sustainable and fairer economy.