How to become self-employed in Hungary?

What is self-employment in Hungary?

If you want to do business in Hungary, you can either set up a company of your own or become self-employed. Both procedures are quite fast, and you can get an EU VAT number immediately, without any extra requirement. Becoming self-employed in Hungary does not require a starting capital, while management and accountancy is a lot simpler and costs less than operating a company. At the same time, a sole proprietor is fully liable for damages, while the liability of an LLC is limited to their capital.

Who can be self-employed in Hungary?

While company setup is allowed for anyone regardless their nationality, you can be self-employed in Hungary only if you are a citizen of the EEA or a resident of Hungary.

Please note: if you are an EEA citizen, you will need a Hungarian social security card (or TAJ card), which requires a Hungarian address, meaning you will need an EU registration card.

Moreover, you cannot become self-employed if you are:

• a minor (under 18 years);
• already a sole owner of an SME or a fully liable partner in a company;
• banned from proprietorship are a penalty for previous offences;
• serving a sentence longer than 1 year.

What do you need for self-employment?

Before you register as self-employed, make sure to ask yourself the following questions, and have the answers ready by the time of registration.

• What will be your main activity?
• Where will you perform your activity?
• What is your expected yearly revenue?
• Which form of taxation is best for you?
• Will you need an accountant?
• Do you want a separate bank account?
• How will you issue invoices?

Click here to have a closer look at these questions to make informed decisions about your Hungarian business.

You can take care of everything online

Once you are ready to register your self-employment, you can take care of the entire procedure online if you have access to the Ügyfélkapu (or “Client Gate”).

• Register your self-employment and get a business tax number from NAV (the Hungarian Tax Authority) – this will be a tax number different from what you have as a natural person
• Registration at the Chamber of Commerce
• Registration at your municipality for the local business tax (this might even be automatic depending on your municipality)
• Choosing an invoicing platform and linking your account to the NAV database

Once you are registered for self-employment, your business related data can be publicly accessed in case a partner wishes to verify your business, just like in the case of companies. Search is possible based on tax number or business registration number.

Living, working, and doing business in Hungary

You can become self-employed in Hungary only if you are already a citizen of either Hungary or the EEA, or at least a resident of Hungary. Registration is quick and easy, and you can immediately get an EU VAT number. Operation is relatively simple too – you might not even need an accountant, although the more complex your activity is, the more value an accountant can provide.

Helpers Hungary provides all kinds of administrative assistance to expats related to living, working, and doing business in Hungary, with a focus on company formation and application for various kinds of residence permits. Whether you need help with business setup, accounting, or residency application, we are happy to help.

Fill in the form below to contact us.

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