{"id":1959,"date":"2020-05-18T14:33:51","date_gmt":"2020-05-18T14:33:51","guid":{"rendered":"https:\/\/dev.useme.com\/en\/blog\/?p=1959"},"modified":"2023-08-24T11:28:45","modified_gmt":"2023-08-24T11:28:45","slug":"freelancing-in-hungary-obligation-requirement-and-working-environment","status":"publish","type":"post","link":"https:\/\/useme.com\/en\/blog\/freelancing-in-hungary-obligation-requirement-and-working-environment,166\/","title":{"rendered":"Freelancing in Hungary: obligation, requirement, and working environment"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/useme.com\/en\/blog\/freelancing-in-hungary-obligation-requirement-and-working-environment,166\/#How_many_people_work_as_a_freelancer_in_Hungary\" >How many people work as a freelancer in Hungary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/useme.com\/en\/blog\/freelancing-in-hungary-obligation-requirement-and-working-environment,166\/#Does_a_Hungarian_freelancer_need_to_register_or_open_a_business\" >Does a Hungarian freelancer need to register or open a business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/useme.com\/en\/blog\/freelancing-in-hungary-obligation-requirement-and-working-environment,166\/#What_is_the_basic_tax_rate_for_the_Hungarian_freelancer\" >What is the basic tax rate for the Hungarian freelancer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/useme.com\/en\/blog\/freelancing-in-hungary-obligation-requirement-and-working-environment,166\/#How_to_report_the_income_tax_as_a_freelancer\" >How to report the income tax as a freelancer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/useme.com\/en\/blog\/freelancing-in-hungary-obligation-requirement-and-working-environment,166\/#What_is_the_additional_requirement_to_work_as_a_freelancer\" >What is the additional requirement to work as a freelancer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/useme.com\/en\/blog\/freelancing-in-hungary-obligation-requirement-and-working-environment,166\/#What_is_a_better_and_safer_way_to_work_as_a_freelancer\" >What is a better and safer way to work as a freelancer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/useme.com\/en\/blog\/freelancing-in-hungary-obligation-requirement-and-working-environment,166\/#What_is_a_better_way_to_work_with_Hungary_freelancers\" >What is a better way to work with Hungary freelancers?<\/a><\/li><\/ul><\/nav><\/div>\n<p>A freelancer is a person who works with several clients in different fields. They have different types of projects such as graphic design, marketing, and IT. More and more people work as a join this trend in Europe. Hungary offers a friendly environment for individual contractors. We have conducted research about freelancers in several countries in Europe, such as France, Bulgaria, Romania, and North Macedonia. In this article, we are going to discuss the freelancing in Hungary.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_many_people_work_as_a_freelancer_in_Hungary\"><\/span>How many people work as a freelancer in Hungary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>About <a href=\"https:\/\/en.wikipedia.org\/wiki\/Hungary\" target=\"_blank\" rel=\"noopener\">10 million<\/a> people live in Hungary. In 2018, at least <a href=\"https:\/\/analyticshelp.io\/blog\/global-internet-freelance-market-overview-2018\/\" target=\"_blank\" rel=\"noopener\">4000 people<\/a> worked as a freelancer in Hungary.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Does_a_Hungarian_freelancer_need_to_register_or_open_a_business\"><\/span>Does a Hungarian freelancer need to register or open a business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>No, they do not. One of the significant advantages for the Hungarian contractor is the <strong>hassle-free<\/strong> requirement. It is not necessary to start a business. There are two legal solutions, especially for a freelancer. One is the temporary employment contract, and another one is the simplified employment (egyszer\u0171s\u00edtett alkalmaz\u00e1s).<br \/>\nThe temporary employment can last for a maximum of three months. The employer is required to pay the insurance and income tax in advance for the freelancer.<\/p>\n<ul>\n<li>The social security contribution ranges from 17.5% to 36%.<\/li>\n<li>The advance income tax rate is 15%\u2014the rate is calculated from 90% of the remuneration.For the simplified employment (egyszer\u0171s\u00edtett alkalmaz\u00e1s). With simplified employment, the freelancer does not need to sign a contract with the client. They only should conduct several registrations in the relevant government office. The disadvantages of simplified employment are strict time limitations and additional fees. The employer needs to pay 1000 HUF to the tax office per day.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_basic_tax_rate_for_the_Hungarian_freelancer\"><\/span>What is the basic tax rate for the Hungarian freelancer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Several features influence the tax rate. If the freelancer earns more than minimum wage, then the income tax increases to <strong>15%.<\/strong> Both the employer and employee are required to pay the social security contribution.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_report_the_income_tax_as_a_freelancer\"><\/span>How to report the income tax as a freelancer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are several ways to report the tax in Hungary. One of the popular ways to report the tax is via <strong>KATA.<\/strong> This option is popular among freelancers, and self-employed contractors in Hungary as the entrepreneur pays a flat rate monthly. Also, this option covers all of the additional fees like pension, social attribution. In 2020, the monthly amount for KATA is 50,000 HUF or 75,000 depending on the income. If your revenue exceeds a certain amount, you must pay the additional 40% income tax.<\/p>\n<p>Another option is to pay contributions based on the revenue. The contribution is divided into three elements: pension, health, and social. If the revenue does not exceed the minimum salary, then contributions and tax rates are calculated on the revenue. This way, the tax office charges a lump sum. In addition, there is also a special 1.5% professional tax, which is paid by a limited number of professionals.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_additional_requirement_to_work_as_a_freelancer\"><\/span>What is the additional requirement to work as a freelancer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To stay in Hungary, a freelancer needs to check additional details such as resident permits and work permits. If you are an EU citizen, you do not need to apply for a resident and work permit in order to stay in Hungary. For non-EU citizens, you need to check the requirement to apply for a <a href=\"http:\/\/www.bmbah.hu\/index.php?option=com_k2&amp;view=item&amp;layout=item&amp;id=70&amp;Itemid=824&amp;lang=en\" target=\"_blank\" rel=\"noopener\">residence permit<\/a> in Hungary.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_better_and_safer_way_to_work_as_a_freelancer\"><\/span>What is a better and safer way to work as a freelancer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As a freelancer, you have to check the legal requirements and take care of your rights. Are you looking for an effective way to protect your rights? Here is a simple way to <a href=\"https:\/\/useme.com\/en\/secure-payment\/employer-choose\">protect your right<\/a> and receive the payment in the way you want. With us, any client can only download the work <strong>after<\/strong> paying for it. Get a new project? We will <a href=\"https:\/\/useme.com\/en\/secure-payment\/employer-choose\">confirm the cooperation<\/a> with your new client.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_better_way_to_work_with_Hungary_freelancers\"><\/span>What is a better way to work with Hungary freelancers?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Some additional work involves when working with an individual contractor. The HR department needs to handle the paperwork for letting freelancers onboard. With Useme, the recruitment process is much simpler than usual. The employer only needs to direct the freelancer to <a href=\"https:\/\/useme.com\/en\/get-an-invoice\/\">our site<\/a> for signing the job contract and send the payment to our accounting system. We take care of the administrative work, secure the payment for both sides, and store all of the data for you.<\/p>\n<p>Remember: working with freelancers is a great way to <a href=\"https:\/\/useme.com\/en\/blog\/go-global-with-your-business\/\">go global with your business.\u00a0<\/a><\/p>\n<p>Do you have more questions? Write to us at info@useme.eu<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/useme.com\/en\/secure-payment\/employer-choose\"><img decoding=\"async\" class=\"alignnone wp-image-2293 size-full\" src=\"https:\/\/useme.com\/en\/blog\/wp-content\/uploads\/2022\/08\/how-to-send-a-tax-invoice-in-simple-form-3.png\" alt=\"\" width=\"1200\" height=\"400\" srcset=\"https:\/\/useme.com\/en\/blog\/wp-content\/uploads\/2022\/08\/how-to-send-a-tax-invoice-in-simple-form-3.png 1200w, https:\/\/useme.com\/en\/blog\/wp-content\/uploads\/2022\/08\/how-to-send-a-tax-invoice-in-simple-form-3-980x327.png 980w, https:\/\/useme.com\/en\/blog\/wp-content\/uploads\/2022\/08\/how-to-send-a-tax-invoice-in-simple-form-3-480x160.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A freelancer is a person who works with several clients in different fields. They have different types of projects such as graphic design, marketing, and IT. More and more people work as a join this trend in Europe. Hungary offers a friendly environment for individual contractors.<\/p>\n","protected":false},"author":16,"featured_media":1962,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[23,25],"tags":[47,50,59,62],"class_list":["post-1959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-freelancers","category-for-employers","tag-travel","tag-job-market","tag-taxes","tag-hungary"],"modified_by":"Zuza","_links":{"self":[{"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/posts\/1959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/comments?post=1959"}],"version-history":[{"count":5,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/posts\/1959\/revisions"}],"predecessor-version":[{"id":3034,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/posts\/1959\/revisions\/3034"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/media\/1962"}],"wp:attachment":[{"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/media?parent=1959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/categories?post=1959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/tags?post=1959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}