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Income taxes abroad – Hungary says

Living in Hungary? You must pay tax on your worldwide income there.

But it also says:

Your employer deducts income tax and social contributions from your wages, daily allowances or other remuneration.

My situation:

  1. I am a Canadian-Hungarian dual citizen.
  2. I am employed by a Canadian company.
  3. I work remotely.
  4. I have officially closed down all my affairs in Hungary a decade ago, I do not have a proof of address card, I have done a final income tax report, I do not have health insurance -- the whole nine yards. The only official link left is my passport (and birth certificate).
  5. Due to some real interesting twists of fate despite the above I now own a house in Hungary.

I might or might not spend more than 183 days next year in Hungary, I honestly have no idea of how things will go and I am wondering: how would they know? Given Schengen, it's awfully hard to keep track of who goes where. Also, how would my Canadian employer work ... Hungarian taxes? That does not sound reasonable.

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  • The days of presence are basically on the honor system, though if you come under audit or other investigation they may look at your bank records and other evidence of your whereabouts. The Canadian employer generally will not deal with Hungarian taxes unless they already have an affiliate in Hungary and officially transfer you there. Instead, it would be your responsibility to file for a refund from the Canadian tax authority and to pay your Hungarian taxes directly.
    – phoog
    Jun 12, 2017 at 21:06
  • Potentially you should be able to pay 0% tax, as long as you don't stay for more than 183 days anywhere: expatriates.stackexchange.com/questions/3045/…. Probably worth paying for a tax consultant.
    – JonathanReez
    Jul 27, 2017 at 8:22

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