Hungary - Tax Guide for Freelance Contractors
Welcome to our guide to Hungarian Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Hungary.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Hungary. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Hungary.
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Hungarian Income Tax
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Hungarian Social Security
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Hungarian Visas and Work Permits
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Umbrella and Contract Management Services in Hungary
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Download our Hungarian Taxation Factsheet
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Contact our Hungarian Tax Specialists
Residents and non-residents working in Hungary are required to pay social security contributions on their gross salary in Hungary or in the country of their employer after an E101 has been issued.
Social security rates for 2011:
For employers:
28.5% in total applicable as follows:
- 24% pension fund,
- 3% health insurance and unemployment contribution (2% plus 1%)
- 1.5% training contribution.
For employees:
- 10% pension contribution (subject to an annual grosss income cap of HUF 7'665'000)
- 7.50% on health insurance and unemployment contribution (6% plus 1.5%).
In addition, individuals are subject to:
- 14.00% health care tax charge on certain elements of passive income if the health insurance contribution is less than HUF 450'000 in the current year.