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Hungary - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives


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Residency rules
Payroll considerations
Taxable income
Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.

Residency rules

Are there special residency considerations for short-term assignments?


Payroll considerations

Are there special payroll considerations for short-term assignments?


Taxable income

What income will be taxed during short-term assignments?

No special rules; general rules apply.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Hungary?

An economic employer testing is recommended to be initiated in order to assess whether taxation arise. This is recommended in case of all short-term assignments.

Also, as short-term assignments needed to be registered with for labor inspection purposes, it is anticipated that the tax authority will have better insight in terms of short-term assignments, business trips.


All information contained in this publication is summarized by KPMG Tanácsadó Kft., the Hungarian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on Act CXVII of 1995 on Personal Income Tax; Act CL of 2017 on Rules of Taxation; the Web site of the Hungarian Tax Authority; Act LII of 2018 on Social Tax; Act CXXII of 2019 on the Eligibility for Social Security Benefits and the Funding for These Services; Act XCIII of 1990 on Duties; Act C of 1990 on Local Taxes; Act CXXVII of 2007 on Value Added Tax; Act I of 2007 on the Admission and Residence of Persons with the Right of Free Movement and Residence; Act II of 2007 on the Admission and Right of Residence of Third-Country/Jurisdiction Nationals and the Website of the Consular Service Hungary.

© 2021 KPMG Hungary Ltd./ KPMG Advisory Ltd. / KPMG Legal Tóásó Law Firm / KPMG Global Services Hungary Ltd., a Hungarian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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