Global employee mobility is an increasingly common issue for companies. Therefore, it is important to be familiar with the basic legal and tax regulations regarding postings. While the first chapter of our three-part series focused on the most important legal questions, this time we will explore tax and social security considerations.

Connecting a holiday in Tenerife with remote work? Sending an employee to China for three months? While ten years ago, these questions were considered unique, today, international mobility has become an everyday part of employment relationships.

The termination of employment is one of the most sensitive areas of Hungarian employment law. Whether an employer is restructuring its business, addressing performance issues or managing a cross-border workforce, terminating an employment relationship requires careful preparation. Even where the business decision itself is justified, procedural mistakes or poorly drafted termination notices may expose employers to lengthy litigation and significant financial liability.

In 2024, consumer protection authority placed a strong focus on examining online stores. According to a recent announcement by the Minister of National Economy, such inspections are expected to increase further in the coming year. Additionally, 2025 will see the establishment of a consumer protection super authority, with the primary goal of safeguarding consumers in the digital space. For online store operators, it is crucial to prepare for the key practices and shortcomings that attract regulatory scrutiny.

Including an earn-out provision in a corporate sale transaction can be an effective way to ensure a smooth and efficient transfer of a company. However, it may also introduce significant tax challenges. As such, it’s important to approach the inclusion of such a provision with careful consideration.

This year, the most frequently mentioned buzzwords in the IT sector are "cybersecurity" and "compliance." This is due to the NIS2 directive, which is being uniformly introduced across the EU, and the tasks associated with it span the entire year. Moreover, in just a few days, Hungarian businesses must move past the second phase as well.

A shareholder’s ownership percentage does not always reveal who truly controls a company. In an acquisition, joint venture or minority investment, influence depends as much on negotiated governance rights as on the shares held. This is particularly relevant for foreign investment in Hungary. An investor may want existing management to run the business while retaining a say over decisions that could materially affect its investment. The aim is to protect the investment without slowing the company down.

While the golden visa rules are still being finalised in Hungary, similar schemes have been popular in other EU countries for years. However, once the Hungarian rules have been finalised, the Hungarian Golden Visa will be highly competitive by EU standards.