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We've covered application for the TAJ card in these forums.  Search for it.  There's a link to the correct form in PDF to send to the right place.

If you have an EHIC card, then you can use it until it expires.  HMG hasn't said how the GHIC works.

Using a UK EHIC card here is not easy at all.   But using an HU EHIC in the UK is very simple and most of the time, they don't care about it at all (pre-Brexit anyway).

SimonDavidson wrote:

Hi,

I started a small business in late 2020, but so far the profits from this are not worth talking about as it is more of a hobby. Probably less than €1000 profit in 6 months, but as I said, this is a hobby and it is simply pocket money..

What are the tax implications for having such a small income

To have a business in Hungary, you needed to have contacted a solicitor/lawyer and formed the business. You had several business types to select from. From KATA, sole trader, KFT, etc. For each you are expected to issues bills, collect VAT if you are VAT registered, and pay your income and social taxes. Your lawyer should have explained this to you.

If you did not do this, and have not registered a business in Hungary, then what you are doing is probably black income, and is probably illegal.

The least expensive legal business income option is an "original producer", where you only sell what you grow in person to the buyer (no Internet sales). Next is KATA, for which you pay a minimum of 50,000 HUF a month to take care of your income and social taxes (but then you can not deduct expenses). Up from that requires you to have an accountant. Even at the KATA rate, 1000 EURO over 6 months would not leave you with any profit. Which is why there is really no such thing as a legal "Hobby Business" in Hungary unless you are not concerned about making a real profit. If the taxes don't get you, the paper work may.

If you set up a business outside of Hungary, and you do that business from Hungary, you are still liable for all Hungarian income and social taxes as you stated you are resident of Hungary. This can lead to a great deal of double taxation issues if there is not a tax treaty between where you setup the business and Hungary. And even if you setup a business in another country, you may still need to start a business in Hungary, or a branch office, if you live in Hungary. It is complicated. You need to contact a lawyer.

SimonDavidson wrote:

living off our savings from the sale of a house before we arrived in Hungary..

If you sold your property before coming to Hungary, and paid all taxes there, your profits are not taxable in Hungary. But you still need to pay for your health care requirements.

SimonDavidson wrote:

And the other question is health care, how do we apply for this?

Simple. Go to your local tax office. They will help you setup your required monthly payments. But if you have a legal business, you may need to pay through your business. Consult with the tax office for details.

This is a reply to both of the posts of Simon,

First of all I want to make clear that this reply is by no means tax or financial advice, just my own subjective opinion.

This post will be long and in a way direct or even rude.
In my view you are far too late in starting to ask these type of questions, I personally was in a very similiar situation and my experience is that by moving country you can save a lot on taxes (me and my wife moved from The Netherlands to the UK to Luxembourg and then to Hungary. All in all it gave us EUR 50K net in tax savings (which paid for a large part to move to Hungary and early retirement). The last move from Lux to Hungary gave us EUR 10 K net. For tax savings it might not be too late although for some cost saving actions might be.

Nothing is mentioned on personal situation, is your wife Hungarian speaking (definitely would help (also for tax-declarations)).

What I do know is that I shifted some of my Luxembourg income to Hungary (planning for the future) into a Kft. This created a profit but also VAT to the benefit of this company (me) and also a buffer for offsetting losses.

Some of the benefits (of having a company (shape very much depends on your own situation)
-When you buy a car as a Kft you can get HUGE discounts (I do not know why but attractive for car dealers)
-Depending on your profits you can depreciate your car but for day to day life offset the VAT
-Car insurance for company care is lower
-Health insurance in principle is HUF 7500 minimum per month, my wife however is on part time contract and pays a fraction and is still covered.
-Side remark health insurance as per the above for a private person (still very limited) and I have to say only good experiences (even (if in the past (situation changed))n not now anymore as it seems (I have to see how it works out as I personally did not dislike the gratuities (but that is just me)
-.... Very much depending on turn-over, does not mean you have to make a profit per se, but clearly the higher the turn-over you will get more (less visible) benefits.
-Others

Again nothing is disclosed which is a shame, one thing is clear (even if one of you speaks Hungarian) an accounting company would be very beneficial, typically they would give practical advice, do your company returns, salary declarations and even do your private income tax filings (apart from other things as health card requests, water well filings, .....)

As a last remark, I am happy that you have crypto, but you ask the question too late. The accounting company might give some clarity, but actions (perhaps, but since coming from the UK probably little use apart from clarity). As a side note when I arrived in Hungary there was a cap on Health insurance (which can be quite big) (Income tax is not the only thing to consider)

Again, no tax-advice at all, I just know tax exists and you can (and should) make savings.

Me and my wife do not speak Hungarian, we use VGKE (just google) in Budapest and they are VERY good. (especially on the practical front)

another angle but a very good post

For Simon, I think the posts given are high quality, much more than one normally would expect on a forum. Good luck with your life in Hungary.

Just to add something - the 7500 HUF healthcare is collected via NAV (the tax administration). 

They send bills for the entire year and they have to be filled in and paid regularly via the Yellow Cheques at the Post Office or online 

I should say they get things wrong regularly, particularly if you pay too far in advance.  They lose payments and then demand the money again.  It all goes wrong usually at the end of each year but also a bit random.  Not sure if it invalidates the TAJ card immediately one is in  arrears.  There must be some leeway when they screw up.

fluffy2560 wrote:

Just to add something - the 7500 HUF healthcare is collected via NAV (the tax administration).

The rate for 2021 is 8000 HUF. Please try to give up to date information.

fluffy2560 wrote:

I should say they get things wrong regularly

"Any fool can criticize, complain, and condemn—and most fools do. But it takes character and self-control to be understanding and forgiving." ― Dale Carnegie

Best to look at your own doorstep before complaining about how others keep theirs....

Ok, it was 7500 HUF was before and now it's 8000 HUF.   Feel better?

Just telling others to check because they get it wrong sometimes. 

Don't need the advanced trolling lesson 3-posts Taltos167.

I read the post of taltos and I was really considering what to post. There are a few good posters on this forum and Fluffy is definitely one of them.
I have rarely seen such a depressive reply (Taltos), perhaps you (Taltos) are a very knowledgeable poster (would be good), I hope for you are a millionaire (I am myself not the best of soft posters and I am also not very emphatic).
As for me, yes I consider to move (implicitly complain, but Hungary has many many pluses as well  (one of the reasons to live here in the first place)

Indeed I posted some negative items myself, but the one I refer to is exceeding even those levels.
I am not a Hungarian tax specialist but what I do know is that some advanced considerations have to be made, you just have to be open, very much depends on individual (or company situation). Generic rules are easy to be found, the devil (or profit) are in the detail.

Where I have to give a compliment is that you (the poster I refer to) have a appreciation of the tax topic, but all have different situations.

Some of the items are not addressed (but relevant), VAT deductions, dividends to be paid, caps on healthcare, ....

Being arrogant can be (I am myself (but I have so so many weaknesses), but do so if supportive and/or emphatic.

Having a new (positive) contributor would be great for this forum though.
In my view an apology toward Fluffy would be good.

Apologies to be so open.




.

cdw057 wrote:

Having a new (positive) contributor would be great for this forum though.
In my view an apology toward Fluffy would be good.

Apologies to be so open.
.

Thanks for your support.    Of course I never bothered reading the links as it was all calculated to get a reaction.  I don't know why people bother wasting their time doing that.  But my shoulders are broad so it was  "meh, who cares".  Don't have to read these things - we're all here voluntarily.

We just paid our Taj payment for last month.It was 7,710 forints each. In Jan. it will go up to 8,000.
I wasn't aware of this but just asked my husband, we got a letter in the mail about the increase.
The thing is it all depends on your citizenship and resident card if you can even apply for national health here in Hungary.
If someone is working then their job pay, not sure about if they cover a none working spouse or not.
My husband had to wait a full year to have his Taj card activated after returning to Hungary. He is a citizen of HU too.
I had to have private health coverage the first year then I could get Taj coverage through being married to a HU citizen.
I know people living in Hungary for years who can not get a Taj card because it is linked to the sort of via they have.
Taxes, I know nothing about.
We are not working any longer.
I do know the feeling of "being set" after selling off a pricey home.
Seeing all those zeros in our bank account made our hearts race a bit.
Nice feeling but without income it goes down within a few years time.
We sold a S.Ca. home moved to another US state and didn't work for a couple of years. Then I worked doing hair while my husband moved t Hawaii to set things up for that move. Did work in Hawaii but it costs so much living there and moving there that soon I wanted t leave before we were stuck there for good.
In the end we found we owed on credit cards more then we ever got in profit n selling our home. It can be a dangerous thing to think you are set.You get used to a certain lifestyle and it hard to go back to normal again. Just a word to the wise, I know Hungary seems "cheap" and overall it is but then again you should be viligent and not wasteful like we were.( yes it was fun to shop and move all over the country)
I just heard that Hungary is not going to tax people on their income who are under age 25.This just started this Jan.

fluffy2560 wrote:

Of course I never bothered reading the links as it was all calculated to get a reaction.

The quote I provided, and the link for comparison, were intended to provide inward reflection. That is, it is easy to criticize others. But it may be wise first to look in the mirror before doing so.

Taltos167 wrote:

fluffy2560 wrote:

Of course I never bothered reading the links as it was all calculated to get a reaction.

The quote I provided, and the link for comparison, were intended to provide inward reflection. That is, it is easy to criticize others. But it may be wise first to look in the mirror before doing so.

Don't bother,  too old and wrinkly to care.  I sleep easy at night.

Taltos167 wrote:

fluffy2560 wrote:

Of course I never bothered reading the links as it was all calculated to get a reaction.

The quote I provided, and the link for comparison, were intended to provide inward reflection. That is, it is easy to criticize others. But it may be wise first to look in the mirror before doing so.

Dang.glad so far I have not been torn apart with such harsh words.
I often tend to over share and can be a target for people.
Please, let's all try to be kind, hard times are coming for all and we do not need to tear each other apart over a difference of opinion.
As I was told many times as a child," if you don't have something good to say, don't say anything at all."
Have a good day.

Marilyn Tassy wrote:

Taltos167 wrote:

fluffy2560 wrote:

Of course I never bothered reading the links as it was all calculated to get a reaction.

The quote I provided, and the link for comparison, were intended to provide inward reflection. That is, it is easy to criticize others. But it may be wise first to look in the mirror before doing so.

Dang.glad so far I have not been torn apart with such harsh words.
I often tend to over share and can be a target for people.
Please, let's all try to be kind, hard times are coming for all and we do not need to tear each other apart over a difference of opinion.
As I was told many times as a child," if you don't have something god to say, don't say anything at all."
Have a good day.

Agree with you  Marilyn.

Taltos167's remarks are only intended to inflame. It's trolling plain and simple.   

It's just laughable that some random poster on here attempts to preach and "educate" via these forums to a bunch of old hands who have been hanging around here for years.  It's just booooooringgggg. 

Must be low esteem driven insecurity topped with some over self-importance, perhaps even a touch of narcissism over there at Taltos167's HQ.

Never mind, other things to do!  It's very sunny but cold. Ideal dog walking time!