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Hungary has a relatively large economy, with a per capita income approximately 2/3 of the EU-28 average. It also has a very high human development index and a skilled labour force. Hungary’s economy is export-oriented with a strong focus on foreign trade. It is also one of the leading countries in Central and Eastern Europe when it comes to attracting foreign direct investment. Major industries that drive the Hungarian economy include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism. Hungary attracts foreign investors through the competitiveness of both SMEs and large enterprises, as well as its strategic location, attracting especially investors planning cross-border business developments.

How to build a team in Hungary

Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Hungary. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.

Global payroll solutions make it easy to find and hire top talent in Hungary. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.

Compliance risk

Risk of misclassification

Hungary’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.

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