Self-Employed in Hungary

Starting a business in a foreign country can be both exciting and challenging. If you’re considering becoming self-employed in Hungary, you’re likely exploring the possibilities that this vibrant Central European country has to offer. Hungary’s business environment is favorable for entrepreneurs, particularly those interested in establishing a sole proprietorship. This article will guide you through the benefits, requirements, and process of becoming self-employed in Hungary, and how our company can assist you every step of the way.

Why Start a Sole Proprietorship in Hungary?

Hungary offers a unique combination of benefits that make it an attractive location for starting a sole proprietorship. Whether you’re a digital nomad, a consultant, or a freelancer, Hungary provides a stable economic environment, low living costs, and a favorable tax system.

• Economic Stability: Hungary boasts a growing economy with strong ties to the European Union, making it a stable place to start and grow your business.
• Low Cost of Living: Compared to other European countries, Hungary offers a relatively low cost of living, which can be a significant advantage for new entrepreneurs.
• Favorable Tax System: Hungary has a flat tax rate of 15% for individuals, including self-employed persons, making it one of the most competitive tax environments in Europe.
• Strategic Location: Situated in the heart of Europe, Hungary offers easy access to both Western and Eastern European markets, making it an ideal base for international business operations.
• Support for Entrepreneurs: The Hungarian government offers various incentives and support programs for entrepreneurs, particularly in technology, innovation, and export-oriented industries.

Who Can Become Self-Employed in Hungary?

Practically anyone can become self-employed in Hungary, provided they meet the basic legal requirements. Whether you are a Hungarian citizen, an EU/EEA national, or a third-country national, the process of becoming self-employed is straightforward, though it varies slightly depending on your residency status.

• Hungarian Citizens: As a Hungarian citizen, you can easily register as a sole proprietor. The process is quick, and you can start operating your business almost immediately.
• EU/EEA Nationals: EU/EEA nationals enjoy the same rights as Hungarian citizens when it comes to starting a business. You can easily register as a sole proprietor without the need for a work permit.
• Third-Country Nationals: If you are from outside the EU/EEA, you can still become self-employed in Hungary. However, you may need to obtain a residence permit for the purpose of self-employment, which requires meeting specific financial and business criteria. You can read more about VISA Application in Hungary here.

The Process of Starting a Sole Proprietorship in Hungary

Starting a sole proprietorship in Hungary is a relatively simple and efficient process. Here’s a step-by-step guide:

1. Obtain a Tax Number: The first step in becoming self-employed is obtaining a Hungarian tax number. This can be done online or in person at the Hungarian Tax Authority (NAV).
2. Register Your Business: Once you have your tax number, you can register your business as a sole proprietorship. This involves submitting a registration form to the local government office or through an online portal.
3. Choose Your Business Activity: During the registration process, you’ll need to specify the type of business activity you’ll be engaged in. Hungary has a wide range of business categories, so you should choose the one that best fits your intended operations.
4. Set Up a Business Bank Account: Although not mandatory, it’s advisable to open a separate business bank account to manage your finances. This will help you keep your personal and business expenses separate.
5. Get Insured: Depending on your business activity, you may be required to obtain specific insurance. For example, if you’re in a profession that requires liability insurance, you’ll need to secure this before you can start operating.
6. Comply with Local Regulations: Ensure that you comply with all local regulations, including health and safety standards, labor laws, and any industry-specific requirements.

How We Can Help You Start Your Sole Proprietorship in Hungary

Our company specializes in providing comprehensive services to individuals who want to become self-employed in Hungary. From the initial planning stages to ongoing business support, we are here to make the process as smooth and efficient as possible.

• Tax Advisory Services: Navigating the Hungarian tax system can be complex, but our team of experienced tax advisors is here to help. We provide detailed tax planning and advisory services, ensuring that you understand your tax obligations and can optimize your tax position.
• Business Formation Services: We handle all aspects of registering your sole proprietorship in Hungary. Our experts will guide you through the process, ensuring that all legal requirements are met and that your business is set up correctly from the start. You can read more about Company Formation in Hungary here.
• Online Business Management: In today’s digital age, managing your business online is crucial. We provide services to help you run your business efficiently online, including setting up digital invoicing systems and providing virtual office services.
• Registered Office Services: If you need a registered office address in Hungary, we can provide this service. Our registered office service includes mail handling, forwarding, and a prestigious business address in a prime location. You can read more about Virtual Office in Hungary here.
• Invoicing Software Selection and Training: Choosing the right invoicing software is crucial for managing your finances. We help you select the best software for your business needs and provide training on how to use it effectively.
• Accounting and Payroll Services: Keeping accurate financial records is essential for any business. We offer comprehensive accounting and payroll services, ensuring that your financial records are accurate, up-to-date, and compliant with Hungarian regulations. You can read about Payroll in Hungary here.
• Administrative Support: Dealing with Hungarian bureaucracy can be challenging, especially if you’re not familiar with the language or procedures. We offer full administrative support, including assistance with all official procedures, so you can focus on growing your business.