This is from the persepctive of a third-country (i.e. not from Hungary or the EU) citizen. And of course, I’m not an immigration or tax professional, so these were just my personal experiences. Although everyone’s situations can differ, I hope this gives you some guidance!
In order to work as a freelancer in Budapest, I needed to become a Sole Entrepreneur. In this way, I set up my own business (think of it as Denae Inc.). So when I invoice someone for an English lesson, it’s not a person-to-person relationship, rather, a business-to-customer relationship.
Getting a Government Login (ügyfélkapu)
First, I had to get an ügyfélkapu (literally: “client gate”), a secure login to the government system. This process is quite straightforward.
I went to a kormányablak (“government window”) and brought all of the documents I had. (I’ve heard that all that’s necessary is your passport, but I find it’s always best to bring everything you can. I brought my passport, address card, and residency card). The process took around 15 minutes. The clerk will opened it for me on their side, I signed a paper, and then they emailed me a link that let me login and set up apassword. (This link is time sensitive, so complete it ASAP before it expires.)
My Problem (skip for next part of the process)
If you have my bad luck, you’ll show up for this simple process and then be told you are not in the system. After a lot of tears, frustration, and running around to 3 government offices, I discovered this was because my information did not match. There are multiple systems: NAV (tax), immigration, and NÉAK (healthcare). If even one character (or in my case, the order of the name) differs, then the system cannot “see” you properly.
In my case, my mother’s maiden name AND my birthplace did not match across all three systems, therefore I could not move forward with the process until I went to the respective offices and fixed it.
A quick glance through expat forums assured me that this isn’t an incredibly rare occurrence, whether because of foreign spellings or orderings of our names.
Setting Up My Business
Once I got my ügyfélkapu, it was time to set up my business. This is something you’ll need a Hungarian speaker for, and where an accountant might come in. We logged in to the government portal and followed the process to become an egyéni vállalkozó.
Important: Your business will need a székhely, or “chair place”. This must be a permanent Hungarian address. So even if you have an address card/lease, if you don’t own the property, you cannot use it. Maybe you have a Hungarian friend/relative/s.o. who would be willing to allow you to use their address (they will have to sign a form testifying this). If not, some relocation companies (such as Logosz) offer a székhely address as part of their services.
By the end of the process, my business was established! I had a new tax number specifically for my business, and I was ready to start invoicing for my services. Denae Inc. was born!
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