Hungarian tax liabilities of foreign individuals

The natural persons, who qualify as foreign-resident taking tax aspects into account but work in Hungary and receive their salaries from a company having its seat abroad, may have tax payment obligation in Hungary in accordance with the provisions of the double tax treaty in place between Hungary and the given country.

In respect of these employees, our tax advisors examine from a tax perspective, based on the effective legal regulations, in which state they have to pay taxes on their incomes. Following the tax review, we give advisory on social security insurance matters taking into account the social security agreements concluded with the employee’s home country.

We examine the above matters individually for each foreign-resident employee and we advise on the structure of the required tax documentation background. Upon request, we also assess the taxation and insurance conditions and circumstances of the family members of the foreign employees and give advice or assistance in various procedures accordingly.