Thinking of freelancing in Budapest? Everything you need to know

Published: April 06 2023

Contents

You can work as a freelancer only if you are a resident of Hungary or citizen from an EEA country. However, with this increased flexibility comes full liability for business losses and any damages you may cause.

You need to identify if you need a license, no-criminal record, or whether your activity is available for freelancers. The Chamber of Commerce database lists the requirements needed for various activities.

You need to register your premises and pay local business taxes to municipalities where they are located.

For official communication with the authorities, you need to have a physical address. Choosing a registered seat provider with virtual office service can come in handy if you do not live at your permanent address all year round or live in a rental.

Choosing the appropriate tax regime is crucial for your business. The tax regime you choose will depend on your expected yearly revenue as some tax regimes (like KATA, regular or flat-rate) have revenue cap limits and other restrictions.

Different taxes and contributions apply depending on whether freelancing is your main source of income or a side business.

VAT registration is mandatory if your yearly revenue is above HUF 12 million.

It's advisable to have a separate Hungarian bank account for your business that you can use to pay taxes as an individual entrepreneur.

Determine how you want to issue your invoices, whether through your existing retail bank account or a separate one.