In an international company, it often happens that the expertise of a valued colleague is indispensable at a business location in another country. In such a case, the employee sent abroad will some kind of a permit to start working abroad.
If the employee is a national of a non-EU country and is entering the EU for their temporary deputation, they will need a work permit.
In some special cases, the employee might apply for an intra corporate transfer permit, which offers added benefits to both employer and employee.
When an employee arrives to Hungary with a regular work permit, they will be employed be the Hungarian company. They will pay employment related taxes in Hungary, and they will be insured in the Hungarian social security system.
In some cases, it is more beneficial if the employee can remain officially on payroll at the sending company, in their home country, and if they can also continue to be insured there. This is made possible by choosing the intra corporate transfer permit.
Remaining employed by the home country may be taxation-related advantages, as the employee will continue to be insured in their home country. In general, if they spend more than half a year (183 days) in Hungary, they become liable to pay income tax in Hungary; however, there are double taxation treaties in place between Hungary and most other countries to avoid paying taxes twice. In any case, it is worth asking for tax advisory before deciding between the regular work permit and the Intra Corporate Transfer permit.
The employee may receive an Intra Corporate Transfer permit in Hungary if
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Are you planning a more complex project? Let us help you assess your progress. If you fill out the survey on the below link, you can check on all the most relevant aspect for getting work permits (or intra corporate transfer permits) for your employees for your Hungarian project, and in the end you can even ask for a tailored quote.
|employee will be on payroll||at the Hungarian company||at the sending company|
|employee has been working for the sending company||N/A||for min. 3 months|
|employee must be appropriately qualified||yes||yes|
|salary must be in line with the Hungarian market||yes||yes|
|the sending and receiving companies must be related||no||yes|
|permit validity||based on contract, max. 2 years||based on contract, max. 3 years|
|permit can be extended||unlimited||up to 3 years|
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