Private entrepreneurship

To begin, it is crucial to understand that in Hungary, along with the status of "temporary residence," the right to work is immediately provided, which is valid alongside the identification card and can be extended after it expires.

After getting the necessary work authorization, the next step is to obtain a tax identification number, which will allow you to create a bank account and pay taxes in the future. At the same moment, you can open a bank account in any bank in Hungary.

Furthermore, for housing, an address and an official lease agreement are required.

Documents confirming your specialisation are also required, such as a higher education diploma and a diploma/certificate confirming your professional knowledge.

The benefits of operating as a private entrepreneur include no initial investment requirements, no citizenship limitations, and quick registration and liquidation. The drawbacks are that you must obtain a status that certifies your legal presence in Hungary and that you are solely responsible for the repercussions of such a business.

In Hungary, private entrepreneurship is taxed in the following ways:

- VAT - 27%, and private entrepreneurs are exempt from taxation provided their profit does not exceed 32,000 euros; 

- There are also two other taxation options: KATA and FLAT RATE.

Lawyers in Hungary handle business registration since they have access to the government portal. When a person applies to a licenced lawyer, they produce a statistical and tax code statement, after which the person can carry out their business activities.