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Working in Hungary
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Beautiful Budapest |
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There are two main ways of gaining permission to work in Hungary if the work goes
beyond establishing business contacts or negotiating deals - both of which do
not require a special visa or permit.
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A work permit is required for most types of work, including work carried out in Hungary for a
foreign company on a contractual basis. Exceptions to this rule require an income earning activity
visa and include:
- Working as a supplier, putting equipment into operation, or servicing and repairing
warranted/guaranteed products and services. Suppliers contracts required for application.
- The foreign participation of an executive officer. The company's deed of incorporation required
for application.
- Members of supervisory boards of majority foreign owned companies. The company's deed of
incorporation required for application.
- Scientific, artistic and educational activities on the invitation of higher education, scientific
and cultural institutions. A letter of invitation from the Hungarian institution required for application.
- Religious ministers working in Hungarian registered churches or institutions. A letter of invitation
from the Hungarian church required for application.
Work permits are applied for by a Hungarian company through the local Employment Agency where the
work is to be carried out. The permit, once issued, is sent to the employee and is submitted with a
visa application made through a local embassy or consulate.
Work and income earning visas are issued for either 90 days, allowing multiple entries (M-4/M-5) or
for more than 90 days as a single entry visa (TM-4/TM-5). The TM visas allow the applicant to apply
for a residence permit which would serve as a multiple entry visa.
Generally speaking, people hired by a multinational are lucky because their company will usually take
care of visa, working and other formalities. Independent people can consult agencies who
will assist them in completing the papaerwork and dealing with bureaucracy.
Although agencies are relatively expensive, this is still a much better option than trying
to do all the time-consuming paperwork on one's own. Westerners are well advised not to go through the process
without some kind of assistance. This is possible but it entails an
enormous frustration and hassle. In fact, many Westerners stay in Hungary on a standard, automatic
three-month visa to avoid dealing with the bureaucracy.
What to expect once you're there
Positions in Hungary remain easiest to find with Western companies who have moved east.
In these cases
highly skilled executives and project managers are in the greatest demand, training the Hungarian
workers to use their skills within a profit driven market. More often then not, skilled Hungarian
workers can be found, but western managers are seen as the best way to train them in business ideas
from the west which, apart from general project management, also extend to marketing and communications.
Most of the industry drawing foreign workers is located in the capital, which over the last 10 years
has also been attracting lots of tourist interest. Because of this living standards can be reasonably
high, although problems with communications and the quality of some goods and service are lacking in
comparison with the west. For businesses outside the capital, development has been a lot slower and
partners and families of foreign workers can face big changes to the standard of living they are used to.
Many of the industries that support the country's economy are old and heavy, with mining, steel and
heavy engineering still featuring highly. Car and textile production also employ high numbers as well
as agriculture. As would be expected, high managerial positions for international firms pay
internationally comparable salaries. Although the cost of living is lower
than in the west, these salaries are still lower than those found elsewhere
throughout Europe.
There is a big difference between what is offered to foreign workers and the local labour market.
Contracts offer many of the benefits of working in the west, with help also often given with accommodation
and health insurance. Contracts tend to be fixed term and bonuses are also sometimes
given on completion of the contract. It is also sometimes possible for foreign workers to be made
exempt from paying local taxes.
Although working hours and conditions are similar to those in the west, with a maximum of a 40 hour
week expected, many Hungarian nationals are themselves willing to work the hours that are necessary to
complete the work for the week.
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