Hungary is a popular destination for expats looking to start their own businesses or work as self-employed individuals. In this article, we will explore how self-employment works for expats in Hungary, how to register as self-employed, the possibility of working as a digital nomad, how to start a company, and whether there are any incentives or programs to encourage expats to become self-employed or set up a company in Hungary.
How Self-Employment Works for Expats in Hungary
Self-employment is a common option for expats in Hungary, and there are no specific requirements or restrictions on foreign nationals registering as self-employed. Self-employed individuals in Hungary are required to register with the Hungarian Tax Authority and pay income tax on their income.
Step-by-Step Guide on How to Register as Self-Employed in Hungary
Here is a step-by-step guide on how to register as self-employed in Hungary:
Choose your business structure: Before registering as self-employed, you need to decide on your business structure. The most common options for self-employed individuals in Hungary are sole proprietorship and partnership.
Register with the Hungarian Tax Authority: Self-employed individuals in Hungary are required to register with the Hungarian Tax Authority and obtain a tax number.
Obtain a VAT number: If your annual turnover exceeds a certain threshold, you will need to obtain a VAT number.
Pay your taxes: Self-employed individuals in Hungary are required to pay income tax on their income. You can do this through the Hungarian Tax Authority’s website or at a tax office.
Can You Work as a Digital Nomad in Hungary?
Yes, it is possible to work as a digital nomad in Hungary. However, you may need to obtain a visa if you plan to stay in the country for an extended period. Hungary’s visa requirements are subject to change, so it is essential to check the latest information on the Hungarian government’s website.
How to Start a Company in Hungary
Starting a company in Hungary is a straightforward process, with various legal structures and regulations to consider. Some of the most common legal structures include a private limited company, a sole proprietorship, and a partnership.
Step-by-Step Guide on How to Set Up a Company in Hungary
Here is a step-by-step guide on how to set up a company in Hungary:
Choose your legal structure: Before setting up your company, you need to decide on your legal structure. This will depend on various factors, such as the number of shareholders, liability, and taxation.
Choose a company name: Your company’s name must be unique and not already registered with the Company Registration Court.
Incorporate your company: You can incorporate your company through the Company Registration Court. This can be done online or in person.
Register for business licenses and permits: Depending on your business, you may need to obtain additional licenses or permits. This will vary depending on the type of business you are starting and the location.
Incentives or Programs to Encourage Expats to Become Self-Employed or Set Up a Company in Hungary
Hungary has several programs and incentives designed to encourage entrepreneurship and foreign investment in the country. Here are some of the most notable:
National Investment Agency: The National Investment Agency provides free advice and support to foreign companies looking to set up in Hungary.
Hungarian Export Promotion Agency: The Hungarian Export Promotion Agency provides support to Hungarian companies looking to expand their businesses abroad.
Hungarian Intellectual Property Office: The Hungarian Intellectual Property Office provides support and guidance to companies and individuals looking to protect their intellectual property in Hungary.
Startup Hungary:Startup Hungary is an initiative aimed at promoting entrepreneurship and innovation in Hungary. The program provides a range of resources and support to entrepreneurs and start-ups in the country, including access to mentorship, networking opportunities, and funding.
Innovation Center Hungary: Innovation Center Hungary is a government agency that provides support to innovative businesses in Hungary. The program offers a range of services, including access to funding, mentorship, and networking opportunities.
Investment Incentives: The Hungarian government offers a range of investment incentives to foreign investors, including tax breaks, subsidies, and grants.
In conclusion, Hungary is a favorable destination for self-employment and business start-ups, with a supportive business environment and various programs and incentives to encourage entrepreneurship and foreign investment in the country. Whether you are looking to work as a self-employed individual or start your own company, Hungary offers a range of resources and support to help you get started. However, it is essential to be aware of the country’s legal and tax regulations and to seek professional guidance when navigating the process of starting a business in Hungary.