Cross-border Payroll in Hungary

We receive more and more inquiries from foreign companies regarding the various possibilities of employment in Hungary. It is also common for a foreign worker to come to a Hungarian subsidiary.

Taxation of Foreigners in Hungary

The most important thing to know is that no distinction can be made between employees working in Hungary, as long as they are entitled to work here. The minimum wage, tax conditions, paid vacations, employment contracts are all subject to Hungarian regulations.

In the case of foreigners, it is necessary to check whether the Hungarian tax residence is established (the 183-day rule), and whether social insurance must be established or he/she is already insured in another country, which we can prove with an A1 form or, in the case of a third country, with another certificate.

Conditions of Employment

Foreign citizens must obtain a tax identification number and a social security identification number before starting an employment relationship. If the latter is not yet in place at the time of entry, the insurance will not be valid, although the contributions must be paid in the same way. In order to issue the TAJ, an employee coming from a third country must have a valid work permit. You can find more information about how foreigners can stay and work in Hungary, visit the website of the Immigration Office at Residence in Hungary (

Working to Foreign Employers

Foreign employers have two methods available for employment in Hungary. Basically, the employer is registered and given a tax number that is only related to employment. This way they can operate in the same way as a Hungarian company. A local bank account is not necessary, everything can be done from abroad. The other case is if the company does not register; in this case the employee is obliged to register himself and fulfil the reporting and payment obligations. We recommend this only if we are looking for a short-term solution of a few months for a single employee. Further information about taxation questions can be found in the e-booklets of the tax authority (NAV) at their website: Booklets – Nemzeti Adó- és Vámhivatal (

Remote Work

Remote work, which has become extremely widespread in recent years, has raised new questions on this topic. In the case of remote work, it is particularly important to determine the actual place of work. As a result, foreign employment can also be created in this case, whether someone from Hungary works for a foreign company or an employee of a local company is transferred abroad.

Leinonen Hungary is ready to help

Leinonen Hungary is here to assist with cross-border payroll complexities and ensure compliance with both Hungarian and international regulations. Whether you’re managing remote workers, employing foreign nationals, or posting local employees abroad, our experts are ready to help.

For specific questions or more detailed guidance, please contact us. Our team is dedicated to providing the support you need to effectively manage your workforce.

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