Expat Living in Hungary

In this section we will discuss the life of an expat living in Budapest based on a real experience. My friend Monica, whose name I obviously changed for confidentiality purposes, is from the UK and has worked as an English teacher in different parts of the world including South Korea and India. Now she lives in Budapest and agreed to tell me all about her experience as an expat in one of the most exciting cities in Europe.

Monica is incredibly happy in Budapest because the city is particularly beautiful, with the Danube River crossing it by, its stunning architecture and unforgettable views. 

Monica teaches English language in a private school in Budapest and her husband has his own business. They have lived in different countries, but they have lived in Hungary the longest (8 years) which I think is testimony of how good their life is here. Monica and her husband live a great life with amazing and affordable cultural offers and great social circles, they earn more money and spend less, they save a lot in taxes and have spare time for their hobbies. 

In Budapest there are many job opportunities for expats and establishing your own business is relatively easy thanks to the government’s supportive policies. However, as an ex-communist country, the bureaucracy can be very frustrating. Monica and her husband Kevin didn´t have to go through complicated immigration processes because they are from the UK (before Brexit), but she told me that, for other nationalities, these processes are extremely bureaucratic.

For this reason, if you are planning to live and work in Hungary, I recommend you ask your employer what kind of support you are going to get from them with the migration process. If your employer agrees to take care of everything from gathering documents to filling the forms and presenting your case at the immigration office, then it´s a great opportunity, if not, I recommend you think about this before starting your expat life in Hungary. If you would really like to live in Hungary, though, there is the option of hiring a migration lawyer to help you navigate the intricate system

Likewise, if you are planning to structure your business and get a visa permit or residency in Hungary, I recommend you ask for the help of an experienced immigration lawyer and save yourself several headaches. 

For Kevin, for example, this was exactly the case. In order to avoid worrying over these lengthy processes, long procedures and language barriers, he hired a corporate expert to help him establish his operating office in Hungary. Luckily, the country is finally moving away from the communist tradition and making some processes much simpler using the latest technology. Some processes such as auditing and some tax returns can be now carried out remotely through government online portals.

Although my friend’s husband had to invest some money and time establishing his company with the Hungarian expert, it was really worth it because the corporate tax in Hungary is the lowest in the EU. Living in Hungary is not the cheapest regarding personal taxes and withholding tax, but the tax rates are lower than in the UK and the cost of living is much more affordable, so they are very happy here. 

Regarding taxes, a couple of years ago Kevin found out about the Hungarian trust and decided to establish such a structure in order to hold the family´s assets there. Like we have discussed in detail in our trust section, a trust in Hungary has incredible advantages. The Hungarian law protects local trusts, and it enforces foreign judgments only subject to (only a few) bilateral agreements. Kevin decided to put their assets under this structure because they will be subject to Hungary´s corporate tax, which significantly reduces the taxes he would otherwise pay in the UK. 

When they first came to Budapest, they were astonished by the city’s particular beauty and impressive architecture. They found that the food offer is very decent and cheap. Monica was worried that they wouldn’t be able to make friends but she found that there is a large community of expats working in several areas like teaching, business, corporate officers, diplomats, call center employees and many others.

Hungary is home to many expats not only from every part of Europe, but also from different corners of the world like the US, Latin America, China, and Korea. It was more difficult, though to get to know local people. She found that, in order for Hungarian people to open up it is important to learn the language, albeit a few words or expressions. Many people in Hungary know English, which means you won’t encounter issues with basic communication. However, if you want to enter a social group of Hungarians it helps to at least try to speak their language. Thus, the Hungarian people will be more open to a friendly relationship.

Monica and Kevin are melomaniac and they go to the opera, ballet, and concert hall every chance they get. In the UK, as in most of Western Europe, the best places at a theater or a concert are awfully expensive and sometimes even impossible to buy. In Hungary, on the contrary, Monica and Kevin can afford to go to such cultural events practically once or twice a week. This has also helped them make many friends (local and foreigners) who share their passion for classical music. 

A typical day for Monica starts at 7.30 and finishes around 5 o´clock, after which she has time for her hobby which is playing the cello. She has worked at that school for 8 years now and never been happier. This institution has modern facilities and great staff formed by excellent teaching professionals. With her salary she makes almost 4,000USD a month tax free, with a high-end medical insurance and her employer pays for accommodation and flight homes every year. In England she was struggling to make ends meet working as a teacher and could not afford the lifestyle she has here.

Her husband also saves a lot in taxes thanks to the low corporate tax rate. Moreover, although not as cheap as other destinations such as Warsaw or Bucharest, the cost of living in Hungary is considerably cheaper than in Western Europe. Thanks to these advantages, they can live the life that they always dreamed of and that would be impossible to get in the big western capitals like New York, Paris, or Berlin. They earn more, spend less, and have spare time on their hands to enjoy life. 

The couple struggled a lot when getting accustomed to the weather. Since they never visited Panama, which has a very oppressive and humid climate, they found the Hungarian summer of 30 degrees Celsius too hot. Hungary is a country with four seasons where the winters are cold and with snow, although not as cold as the northern countries. Monica´s favorite seasons are spring and autumn which in Hungary are simply delightful. 

My friend tells me that she was a little scared before moving to this country because she had heard about the pickpocketing and bag snatches that usually occur in public transportation, crowded places, stations, and festivals. However, although she has heard that these things happen, it did not happen to them nor she personally knows somebody who has gone through such a situation. They usually walk home at three in the morning after the theater and they always get home perfectly safe.

Monica has not had any issues with the health system; however, Kevin does not speak Hungarian and has not found the best attention in the facilities for expats. Most doctors who speak English usually move to countries such as Austria or Germany because they can earn more money there. For complicated procedures, expats usually go to Vienna, however, unless you have a particular condition that requires a higher skill, the Hungarian health system is very good for routine procedures and simple medical consultations. 

One of Kevin´s favorite things about Hungary are the travel opportunities. Due to its location and to the fact that it has its own airline, it is possible to acquire cheap flights to the most important touristic and financials hubs in Europe and Asia like Saint Petersburg or Dubai.

To sum up, besides from some occasional language barrier, Monica and Kevin have lived 8 long happy years in Budapest and intent to live much more. They have already bought an apartment, they save a lot thanks to the tax advantages and the low cost of living, they earn more than in the UK, they travel more thanks to the country´s location, they can find all international products in the local markets, and they can both enjoy life.

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