Welcome to the beautiful land of Hungary! If you're a digital nomad, an expat, or a location-independent worker looking to establish your tax residency here, you're in for an exciting journey. Hungary offers a rich cultural experience, a vibrant lifestyle, and a welcoming community. This step-by-step guide will walk you through the legal requirements to obtain tax residency in Hungary. Let's get started!
Step 1: Establish Physical Presence
To become a tax resident in Hungary, the first requirement is to establish a physical presence in the country. You need to spend at least 183 days in Hungary within a calendar year. This period includes all days of presence, even short visits for vacations or business meetings.
Step 2: Obtain a Residence Permit
Next, you'll need to apply for a residence permit. This is typically done through the National Directorate-General for Aliens Policing (Országos Idegenrendészeti Főigazgatóság). The application requires various documents, including a valid passport, proof of accommodation, health insurance, and sufficient financial means to support your stay. The process may take several weeks, so it’s advisable to start early.
Step 3: Register Your Address
Once you have your residence permit, you must register your address with the local municipality office (Polgármesteri Hivatal). This registration is crucial as it officially records your place of residence in Hungary. You will receive an address card (Lakcímkártya) as proof of your registered address.
Step 4: Obtain a Tax Identification Number (TIN)
With your address registered, the next step is to obtain a Tax Identification Number (Adóazonosító Jel). You can apply for this at the local Tax Authority office (Nemzeti Adó- és Vámhivatal, NAV). You will need to fill out an application form and provide your residence permit and address card. The TIN is essential for all tax-related matters in Hungary.
Step 5: Open a Hungarian Bank Account
Opening a local bank account is also a key step. Most banks will require your residence permit, address card, and tax identification number. Having a Hungarian bank account will facilitate your financial transactions and is often a requirement for various administrative processes.
Step 6: Notify the Tax Authority
Finally, you must notify the Hungarian Tax Authority (NAV) of your intention to become a tax resident. This can be done by submitting a formal declaration along with your TIN and other relevant documents. The tax authority will review your application and confirm your tax residency status.
Legal References
- Act CXVII of 1995 on Personal Income Tax
- Act C of 2000 on Accounting
- Act LXXX of 2007 on Asylum
- Government Decree 114/2007 (V.24.) on the Implementation of Act II of 2007 on the Admission and Right of Residence of Third-Country Nationals
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