Hiring in Hungary? The flat tax is simple. The payroll split is not.

Hungary combines the lowest corporate tax rate in the EU with a flat personal income tax, but getting someone properly onto payroll still means combining a separate employer contribution tax with the employee’s own social security deduction correctly. We help you choose the right way to hire, place you with the right partner, and stay alongside you for the life of the relationship.

  • Independent advice
  • Vetted partners
  • On your side at renewal

A simple headline tax system. A two-part payroll underneath.

Hungary offers a flat 9% corporate tax, the lowest headline rate in the EU, a flat 15% personal income tax, and an established base for Central European manufacturing and automotive investment, but the simplicity stops at the tax rate: employers pay a separate szocho (social contribution tax) on top of gross salary, while employees carry their own social security contribution, and a company used to one blended payroll tax can easily miscalculate the two.

01

The EU’s lowest corporate tax rate, outside the euro

A flat 9% corporate tax and a flat 15% personal income tax, the simplest headline rates in the EU, but Hungary has kept the forint (HUF) rather than adopt the euro, so currency movement is a real, ongoing part of your cost planning.

02

Highly regulated labour market

A single national Labour Code (Munka Törvénykönyve), mandatory contributions collected in one combined monthly return by NAV (Nemzeti Adó- és Vámhivatal, Hungary’s tax and customs authority) rather than a separate social-security body, and statutory notice and severance obligations that scale with an employee’s length of service mean your employment structure has to be chosen with care.

03

Independent expert advice

Not sure whether you need EOR, payroll, or your own Kft.? We map your headcount, timeline, and risk profile and give you a clear recommendation, not a product pitch.

Four ways to hire in Hungary. Pick once, pick right.

Most businesses arrive having already decided, and often decided too quickly. Here is the honest version of each route. When one fits, the detailed guide is one click away.

Employer of Record

An EOR partner becomes the legal employer of your Hungarian staff, handling the contract, payroll, statutory withholdings (income tax, szocho, social security), and Labour Code compliance, while you direct the work. Operational in days, no entity needed. Best for testing the market or hiring a small team.

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Global Payroll

For when you already have a Hungarian entity, or want to consolidate payroll across several countries. You stay the legal employer; a specialist partner runs the monthly withholding and files the combined NAV return correctly, covering tax and contributions together.

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Entity Formation (Kft.)

Your own Hungarian company, most commonly a Kft. (limited liability company), formed by a lawyer-countersigned deed of foundation and Company Register entry. Full control and a local presence, but you carry legal, registration, and ongoing filing costs. Right when the headcount and permanence justify it.

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PEO Services

A co-employment model alongside your own Hungarian entity. True PEO co-employment is far less established in Hungary than in the US, so for most companies EOR or managed payroll is the better fit. We will tell you honestly which one your situation calls for.

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Hungary at a glance

Currency

Hungarian forint (HUF). Salaries are set and paid in HUF, Hungary’s own currency outside the eurozone with no adoption date set; if your budget lives in EUR or USD, exchange movement quietly changes your real cost.

Minimum wage (2026)

HUF 322,800 per month gross for 2026, one national rate set by government decree, no regional variation to track. A higher guaranteed minimum wage of HUF 373,200/month applies to roles requiring at least a secondary or vocational qualification.

Employer costs

Employers pay a 13% social contribution tax (szocho) on top of gross salary, with no cap for ordinary employment income. Total employer cost is gross salary plus 13%, one figure rather than several separate contribution lines.

Leave & Notice

Hungary is not at-will: dismissal requires a valid, stated reason, and statutory notice (30 days minimum, longer with tenure) and severance (from 3 years’ service) both scale with how long someone has worked for you.

Hiring in Hungary: quick answers

The questions we are asked most about hiring in Hungary.

What is the fastest way to hire someone in Hungary?

An Employer of Record. Your hire can start in days, with a compliant Hungarian employment contract from day one and no entity to set up. It is the lowest-risk way to test the market or place a small team.

Do I need a Hungarian entity to hire?

No. With an EOR you can employ people in Hungary without your own company. You only need to incorporate when you are committing to a permanent, larger presence, and we will tell you honestly when that point arrives.

The headline tax rates are flat and simple, but payroll is not: a separate 13% employer social contribution tax sits on top of gross salary, the employee carries their own 18.5% social security contribution, and dismissal requires a valid, stated reason rather than at-will termination. None of it is a problem when handled correctly, which is the point of getting the model right at the start.

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

Let’s map your Hungary hire.

Tell us who you want to hire and where you are headed in Hungary. One conversation maps your options, flags the risks, and usually gets you to a better answer, and better pricing, than going direct. No pitch.

Tax and labour data verified July 2026 (NAV, PwC). Figures change; we confirm the current position when we scope your hire.