Hungary (HU)
Hungary is a landlocked Central European nation in the heart of the Carpathian Basin — home to one of Europe's most beautiful capital cities (Budapest), one of the oldest parliaments in continuous operation, a notoriously complex but unique language, Europe's largest thermal spring lake (Lake Hévíz), and a culture that blends Magyar warrior heritage, Ottoman influence, Habsburg elegance, and post-communist resilience into something entirely its own.
Capital: Budapest
Region: Europe
Language: Hungarian
Currency: HUF (Ft)
Cost of living: Affordable (index 42)
Emergency: 112
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Business Setup
Start a business or go freelance in Hungary.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Register as an egyéni vállalkozó (sole trader) at welivállalkozó.hu via Ügyfélkapu — free, takes 5–10 minutes. You receive a vállalkozói igazolvány (business licence) electronically.
- 2 Choose your tax regime: KATA (fixed monthly lump sum — only valid for sole traders billing private individuals from 2022), VÁLLALKOZÓI SZJA (personal income tax on business profit), or ÁTALÁNYADÓ (flat-rate tax on revenue). Most freelancers billing companies now use ÁTALÁNYADÓ or standard SZJA.
- 3 Register for ÁFA (VAT) if your annual revenue exceeds HUF 12 million (2026 threshold). Below this, you can be ÁFA-exempt (alanyi adómentes) — clients receive invoices without ÁFA. Register for ÁFA at NAV if you exceed or expect to exceed the threshold.
- 4 Obtain your adóazonosító jel (tax ID) from NAV if you do not already have one.
- 5 Open a separate business bank account (recommended but not legally mandatory for sole traders). OTP, Erste, and Raiffeisen offer business accounts.
- 6 Set up invoicing software or buy an invoice block (számlablokk) from any newsagent/stationer. All invoices must contain: seller name/address, tax number (adószám), buyer info, invoice date, service description, amount, ÁFA details.
- 7 File quarterly or annual tax returns via NAV (nav.gov.hu) or through an accountant (könyvelő). Many freelancers in Hungary use a könyvelő for monthly bookkeeping (typically HUF 20,000–50,000/month).
- 8 Consider voluntary social insurance: as a self-employed person, you may need to pay minimum social contributions even with low income. A könyvelő can advise on the optimal strategy.
Tax registration
Sole traders (egyéni vállalkozók) are automatically registered with NAV upon registration. The adószám (tax number) is assigned at registration. Under the ÁTALÁNYADÓ regime, tax is paid on a percentage of revenue (10–40% deductible depending on activity type, then 15% SZJA + 18.5% social contributions on the remainder). File annual personal income tax (SZJA bevallás) by 20 May each year via Ügyfélkapu / nav.gov.hu.
VAT threshold
HUF 12 million annual revenue (2026). Below this threshold, you can opt for alanyi adómentesség (VAT exemption). Above this, or if you choose to register voluntarily, you must charge ÁFA (27% standard, 18% or 5% on applicable services/products). File ÁFA returns monthly or quarterly depending on turnover. Electronic invoicing (e-számla) is increasingly required.
Invoicing
All invoices must include: seller's name and address, seller's adószám (tax number), buyer's name and address, invoice number (sequential), date of invoice and date of supply, description of service/goods, unit price, quantity, net amount, ÁFA rate and amount (or "alanyi adómentes" if exempt), gross total. Invoices must be issued within 8 days of the taxable event. Electronic invoicing via NAV's Online Számla system is mandatory for B2B invoices above HUF 1 (effectively all B2B invoices). Register at onlineszamla.nav.gov.hu.
Social security
Self-employed persons in Hungary (egyéni vállalkozók) must pay minimum social contributions even with low income unless operating below the minimum wage threshold with other covered employment. The minimum monthly social contribution base is the minimum wage (HUF 322,800 in 2026) — you pay 18.5% on this base plus the 15% SZJA on your profit. KATA users historically had simplified contributions included in the lump sum — check current rules post-2022 reform. Consult a könyvelő urgently to understand your obligations.
💡 Hungary's self-employment landscape changed significantly in 2022 when the government reformed the KATA regime — previously available to all sole traders billing companies, it is now restricted to those billing only private individuals. Many freelancers who previously used KATA for B2B work now use ÁTALÁNYADÓ (flat-rate regime) or operate through a Kft. The KIVA regime is excellent for a Kft. with employees. An important practical note: most Hungarian businesses and freelancers use a könyvelő (bookkeeper/accountant) — this is not a luxury but a practical necessity given the complexity of the tax and invoice reporting system. Monthly könyvelő fees of HUF 20,000–60,000 are standard and are fully tax-deductible.
🏢 Business Structures
Egyéni vállalkozó (EV) · Egyéni vállalkozó
Sole trader / Sole proprietor
HUF 0 (no minimum capital required)
Min. capital
Registration is almost instant online via Ügyfélkapu — typically active the same day or next business day.
Setup time
Liability: Unlimited personal liability — the owner is personally responsible for all business debts with their personal assets.
Setup cost: Free to register via Ügyfélkapu at welivállalkozó.hu. No registration fee.
Best for: Freelancers, independent contractors, consultants, and sole practitioners. Most commonly used by those choosing the KATA or VÁLLALKOZÓI SZJA tax regime. Simple and free — the default starting point for Hungarian self-employment.
Bt. · Betéti társaság
Limited partnership
HUF 0 (no minimum capital)
Min. capital
1–3 working days for electronic registration (e-cégalapítás). Paper registration: 1–2 weeks.
Setup time
Liability: Mixed: general partners (beltag) have unlimited personal liability; limited partners (kültag) have liability limited to their contribution.
Setup cost: Registration fee: HUF 25,000 at the Company Court (Cégbíróság), or reduced/free if registered online. Notary required for deed of foundation.
Best for: Small family businesses and partnerships where at least one person wants limited liability. Historically popular but declining in favour of Kft. (Bt. with notary requirements and partnership dynamics can be complex).
Kft. · Korlátolt Felelősségű Társaság
Private limited liability company (Ltd/GmbH equivalent)
HUF 3,000,000 (approximately €7,500) — can be contributed in cash or in kind
Min. capital
1–3 working days for electronic simplified incorporation (egyszerűsített cégalapítás) using a model deed. Complex structures: 1–2 weeks.
Setup time
Liability: Limited — members (tagok) are not personally liable beyond their registered capital contribution.
Setup cost: Court registration: HUF 50,000 (or reduced for online). Notary deed: HUF 50,000–200,000. Accountant/lawyer assistance: HUF 100,000–300,000+. Plus HUF 3,000,000 minimum capital.
Best for: Most Hungarian businesses with limited liability protection, especially those hiring employees or working with corporate clients. The most common business entity for medium-to-large self-employed professionals and businesses. Required for most serious business operations. KIVA regime is particularly beneficial for Kft. with employees.
Zrt. · Zártkörűen Működő Részvénytársaság
Closed joint-stock company (private)
HUF 5,000,000 minimum share capital
Min. capital
2–4 weeks.
Setup time
Liability: Limited — shareholders not personally liable beyond their share value.
Setup cost: Court registration fee + notary. Typically HUF 300,000–800,000 in total setup costs plus minimum capital.
Best for: Larger private companies requiring a share structure. Often used as a stepping stone before Nyrt. (public company). Less common than Kft. for small businesses.
Nyrt. · Nyilvánosan Működő Részvénytársaság
Public limited company (Plc)
HUF 20,000,000 minimum share capital
Min. capital
4–8 weeks minimum.
Setup time
Liability: Limited — shareholders not personally liable beyond their share value.
Setup cost: Significant — requires public offering compliance, Stock Exchange (BSE) listing requirements if listed. Legal costs: HUF 1,000,000+.
Best for: Companies seeking public share listing on the Budapest Stock Exchange (BÉT) or requiring a public company structure for institutional investors.
Fióktelep / Képviselet · Fióktelep (Branch) / Kereskedelmi Képviselet (Representative Office)
Branch office / Representative office of foreign company
None required
Min. capital
1–3 weeks.
Setup time
Liability: Branch: the parent company is liable. Representative office: no commercial activity, cannot generate revenue.
Setup cost: Registration and notary fees similar to Kft.
Best for: Foreign companies wanting a presence in Hungary without incorporating a new legal entity. Branch (fióktelep) can conduct commercial activity; representative office (képviselet) is limited to promotion and liaison.
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