Due to its central location and open and export-driven economy, Hungary is becoming an increasingly sought after destination for expatriates. Nestled in the centre of Europe, it is an ideal place to enter the EU market, and compared to other Western European countries, it offers great business opportunities at a low risk. In terms of GDP, its capital, Budapest, is one of the top 100 performing cities in the world, thanks to a rapidly expanding technology sector. Alongside some of the most stunning scenery in Europe, this country also offers low corporate tax rates.
There are around 200,000 foreign nationals living in Hungary, with this number having doubled since 2000. Many expats are employed in foreign diplomatic missions or multinational companies. The commercial centre and capital of Hungary, Budapest, in particular, is home to many offices for multinational companies, including Pfizer, Microsoft, and IBM.
With the national language being notoriously difficult to grasp, certain complications can arise when setting up a business here. By partnering with a PEO company, such as Procorre Global, your company can hire employees in this country hassle-free without establishing a legal entity, giving you more time to focus on your business goals.
A typical working week in Hungary is 8 hours a day, 5 days a week, often starting at around 8:00-8:30 a.m. Employees may not work more than 48 hours per week per week, including overtime, or 72 hours per week if they are on call, or if they are relatives of the employer or owner.
Like most countries, Hungary has a government-mandated minimum wage. As of 2022, the official minimum wage is HUF 200,000, or €6,500 per year. This is an increase of 19.47% from the previous year.
There are 15 public holidays in Hungary:
From the first day of employment, all workers have the right to 20 calendar days of paid leave. The annual leave entitlement of employees increases depending on the employee’s age instead of their seniority.
Employees with children under the age of 16 or who have children who are partially or fully disabled of any age are entitled to additional paid leave.
Women are entitled to take up to 24 weeks of maternity leave but can take up to three years off if they wish. They can take this leave 4 weeks prior to their due date. For the first six months, the mother will receive 70% of her previous salary.
A father is entitled to 5 days of paid paternity leave, or seven days if there have been multiple births or complications. This leave is to be taken within the two months following the child’s birth.
The notice period in Hungary is typically 30 calendar days, which can be extended up to 90 days depending on the length of employment. The parties can agree on a longer notice period, but this cannot exceed more than six months.
As of 2022, in Hungary, the flat rate corporate tax rate is only 9%, the lowest across the European Union. The employer's contribution rate (otherwise known as social tax) is 13%.
For third-country nationals who are looking to work in Hungary for no more than 90 days over 180 days will need to apply for an individual work permit. For those who wish to stay in Hungary for longer, a Long Stay Visa (D) will be required. This can also double as a pre-approved residency permit.
A future employee will need the following:
For EU citizens, a registration card and a registered address is all that is required to start working in the country.
Hungary is a country renowned and admired for its rich cultural heritage and breathtaking architecture. The people of Hungary are known for having a patriotic nature, valuing and cherishing their culture which has a rich repository of folk traditions. Hungarians also believe in transparency and honesty and hold these values very close to their hearts.
Public transportation is well developed in urban areas and is relatively inexpensive, meaning it is incredibly easy to get around the country and to visit its neighbouring countries.
There is no official religion in Hungary as freedom of religion is a fundamental right. However, religion still plays a large role in Hungarian culture and traditions, exhibited by the large, well-maintained, and spectacular-looking cathedrals dotted throughout its cities.
Roman Catholicism is the predominant religion in Hungary, followed by 37.2% of the population. 11.6% are Calvinists, and 2.2% identify as Lutherans. There is also a growing population of nonreligious people, with nearly a fifth of the population claiming to follow no religion at all.
Hungarian is notoriously difficult for English speakers to pick up due to its complex grammar rules and tricky pronunciation, but younger generations tend to have a decent grasp of English, making it easier for foreign expats to converse with the locals.
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