When the debtor doesn’t pay – Vindicating claims in Hungary

Vindicating claims is often a difficult issue for the participants of economy. This matter has signs of dysfunction especially in the construction sector, but it is a common problem in other important areas and gives a hard time to private persons as well. In Hungarian law, creditors have a variety of ways to vindicate their claims. The tribute’s amount, expiry, the creditor and the debtor are determining circumstances that take…

Read more

Third country nationals on the hungarian labor market

The employment of a third-country national in Hungary is subject to a work permit, except as provided by law. The proper residence permit usually must be requested by the future employer or the hosting entity from the competent government office. It is a general condition that the third-country national has to have the necessary expertise and qualifications. Quantitative restrictions regarding work permits There is an annual limit on the maximum…

Read more

FAQ – Personal Service Contract, Employment Relationship

Personal service contract and employment contract seem to be very similar, but the differences between the two contract types are determinative. The most important features, similarities and differences of the above mentioned contracts are summarized in this script. 1.) Personal service contract Personal service contract is in Act V of 2013 – on the Civil Code (afterwards: Ptk.) regulated. In civil relations the principle of interdependence and the principle of…

Read more

The new Civil Procedure Code of Hungary – What the changes mean for us?

The new Civil Procedure Code of Hungary came into force 1 January 2018 and – we can say – it has brought numerous changes. At the time of delivering this code the aim was to create a procedure which not only fits into the international practice but establishes a framework for a more professional one. To achieve this objective the legislator made changes even on a basic level. Two major…

Read more

Japanese Companies and Investments in Hungary

The existence of Japanese countries in Hungary is increasing observed the last few years, as a result of that became Japan one of the biggest investors in Hungary, and Hungary became one of the most important partner of Japan in Central-Eastern Europe. About Hungary Hungary is one of the most dynamic economies situated at the very heart of Europe. After the historic political changes in Central Europe in 1989-90 and…

Read more

Obtaining Hungarian citizenship through simplified naturalization procedure

Foreign citizens who have never been Hungarian citizens before may acquire Hungarian citizenship by naturalisation. Persons who meet the necessary requirements may apply for simplified naturalization procedure. It is important to know, that when applying for Hungarian citizenship in the simplified naturalization procedure, it is a legal requirement to understand and communicate in Hungarian language on a sufficient level, and to be able to present the application independently and to…

Read more

Different ways of getting a residence permit in Hungary

Hungary, especially Budapest had become a desirable destination for workers all around the world in the last decades, particularly since its accession to the EU in 2004. Costs of living in Budapest are relatively small compared to other european capitals, but the standards of living are definitely high enough to encourage workers and students to come here to work or study. If you plan to work in Hungary, but you…

Read more

Business Criminal Law in Hungary

Regulating business criminal law is one of the most significant matters in Hungarian criminal policy. According to recent statistics, most crimes are commited againts property. Since the Hungarian business enviroment is very complex, it is necesseary to have an established knowledge about the relevant acts and crimes. 1. Main statutes The Act C of 2012 on the criminal code regulates the substative criminal law. The Act has two parts; the…

Read more

How to Rent a Flat in Budapest (For Expats)

Finding the right apartment when moving to Budapest is probably the most crucial thing in connection with your stay. Once you found your dream apartment in a convenient location with a trustworthy landlord on reasonable price the hardest thing is still ahead, signing the rental contract. Here are some tips on what to consider before signing the contract. First and foremost make sure you know and understand all the details…

Read more

Taxation of Hungarian companies and private persons

Personal income tax and VAT were introduced into the Hungarian tax system in 1988. This was a first step in a long process of tax reform. The next major step, undertaken in 1991, was the modernization of the corporate income tax system. In 1993, the VAT legislation was further modified to conform, at least in principle, to the VAT systems used in the European Union. 1995 witnessed the introduction of…

Read more