Last updated: October 2026
Business activities of foreigners in Hungary
Under EU law, Hungary grants nationals and companies of other EU/EEA member states the same treatment as its own nationals and companies in terms of establishment and business activities. Foreign investments are protected by law.
Foreign individuals and companies may set up companies in Hungary or acquire shares in Hungarian companies. A company registered abroad can operate in Hungary through a subsidiary, a branch or a commercial representative office (see Business Formation). Under the freedom to provide services, EU/EEA businesses can also provide cross-border services in Hungary without setting up an establishment there. Registration obligations, e.g. for VAT or the notification of posted workers, may still apply.
Restrictions apply to the acquisition of agricultural land by foreigners, and foreign investments in certain strategic sectors are subject to screening.
Residence and employment of foreigners
Like EU law, Hungarian immigration law distinguishes between EU/EEA nationals (and Swiss nationals), who enjoy free movement, and third-country nationals. Since 2020, the competent authority has been the National Directorate-General for Aliens Policing (Országos Idegenrendészeti Főigazgatóság, OIF).
EU/EEA and Swiss nationals
- Short stays: stays of up to three months only require a valid identity card or passport.
- Longer stays: a right of residence beyond three months exists for employment or self-employment, for studies, or for those with sufficient resources and health insurance cover.
- Registration: those staying longer than three months must register with the immigration authority no later than the 93rd day after entry and receive a registration certificate.
- Work: no work permit is required.
- Permanent residence: after five years of continuous legal residence, permanent residence status can be obtained, and under certain conditions earlier.
Third-country nationals
Since 1 January 2024, the entry and residence of third-country nationals have been governed by Act XC of 2023.
- Short stays: up to 90 days within any 180-day period, under the Schengen rules (with a visa where required).
- Longer stays: a residence permit is required for longer stays and for employment. The employment-related permit types include:
- Hungarian Card (for qualified employees) and EU Blue Card (for highly qualified employees)
- residence permit for employment and National Card (for citizens of certain neighbouring countries)
- guest-worker residence permit: since 6 June 2026, no new guest-worker permits are issued. Existing permits may be extended under transitional rules. Employment-related permits remain available for citizens of certain countries (e.g. Georgia, Armenia, the Philippines) under stricter conditions, and the annual quota is 35,000.
- White Card for digital nomads working remotely for foreign employers or clients
- guest investor residence permit for qualifying investments (e.g. in a real estate fund) or donations
Permit procedures are generally conducted electronically. In most cases, the employer must be involved, for example by providing a binding employment offer and fulfilling notification obligations. The validity period and the conditions for extension depend on the permit type. Because the rules have changed several times since 2024, we recommend checking current requirements early.
Basic principles of taxation for foreign individuals
Hungary has a broad network of double tax treaties (around 80 countries). These determine which country may tax which type of income. Hungarian tax residents are taxable in Hungary on their worldwide income. Non-residents are taxable only on their Hungarian-source income and on income that is taxable in Hungary under a treaty.
The employer withholds tax and contributions from employment income through payroll. Individuals with income from which no tax advance is withheld (e.g. income from independent activities) pay quarterly tax advances by the 12th day of the month following the quarter. The annual tax return is due by 20 May of the following year. NAV can audit returns within the five-year limitation period. Taxpayers can correct errors themselves within the same period by filing a self-revision.
Tax identification number
Foreign individuals need a Hungarian tax identification number to meet their tax obligations. They can apply to NAV electronically or by post. The application requires the following data:
- citizenship
- full name and birth name
- place and date of birth
- mother’s name
- foreign address
- Hungarian mailing address
Employer obligations
Employers must notify NAV of the employment of foreign employees before employment begins, in the same way as for Hungarian employees. Additional notification obligations apply to the immigration authority. A1 certificates or proof of insurance should be checked for employees posted to Hungary. We support you with this; see our Expat and Global Mobility services.