Hello all, I am brand new to Budapest - I've been here just one month - I'm a tefl teacher and loving the city but know very few people!
Kathryn
Hello Hungary!
thryn76
13 June 2011 12:56:39
8
Christine
13 June 2011 15:06:59
42879
Hi Kathryn,
Welcome to Expat.com! 
Do not hesitate to share your experience with us.
All the best,
Christine
Hollycat
13 June 2011 15:20:54
100
Hi Kathryn
Welcome to BP 
You will have a great time here and there are loads of very nice people on the forum
H
T.K.L.V.
17 June 2011 01:01:06
6
Hi Kathryn,
I'm currently negotiating for teaching job in Budapest. I'd be really grateful for your thoughts about good teacher salaries. I just don't know what is customary. Thanks in advance for your advice.
tklv
--hope I posted this question correctly...I don't know what is customary on this site either!
Harmonie
17 June 2011 11:02:58
19273
Hello T.K.L.V. and welcome to Expat.com!
Hope that Kathryn will be able to help you, or you may create another discussion on the Budapest Forum.
Good luck,
Harmonie.
szocske
17 June 2011 14:15:47
839
Hi,
T.K.L.V. wrote:I'm currently negotiating for teaching job in Budapest. I'd be really grateful for your thoughts about good teacher salaries. I just don't know what is customary.
Regular schoolteachers make unbelievably little in their regular jobs: 800 EUR a month or less, and taxes just got raised in those lower brackets.
Language teaching on the other hand is relatively profitable, a class of 10 people will pay over 40 EUR for a 45 minutes lesson.
Not sure how language schools share that with the teachers, I assume the summer break means an increase in supply and a decrease in demand...
Try to negotiate something steady to live off of, but leaving enough free time for private students on the side. And to enjoy the lovely summer we have this year :-)
thryn76
17 June 2011 16:48:42
8
hi TKLV, I'm new to all this too! ih pay 2900 per teaching 'hour' (45 mins)other schools seem to vary, around 2500ft mark though. privates you will definitely get more for, between 5-7000ft per hour, but obviously it's easier through a school as they have facilities and find the students for you!
Hope this helps a little, any other q's and i'll try to help!
Kathryn
T.K.L.V.
18 June 2011 18:19:38
6
It's just great to have this chance to learn from you all. I really appreciate your input.
What about paying Hungarian taxes? I'll have to pay US taxes on my pay as I'll be billing the school like a contractor on a per course basis, but I'm not sure if I'll owe Hungarian taxes. Initially I'll be in Budapest for only one semester - 15 weeks.
Tracy
Zabz
22 June 2011 13:14:28
31
You will have to check if Hungary has a double taxation agreement with the US but it is highly likely that they do. If they do and you stay in Hungary less than 183 days you could possibly eligable for a Hungarian tax discount. You will need proof so when you travel collect all the reciepts or buy a coffee everywhere you go, make sure the reciept has the name of the coutry you were in on it.
Other option, but again you'd need a speak to a good accountant, if you are a contractor based outside Hungary and can prove that you are paying your taxes and social security in another EU country then you might not have to pay HU taxes.
I'm still learning the Hungarian systems but double tax agreements with the US are usually pretty standard.
Best place to start is with the US Embassy over here re: double tax agreement between the US and Hungary.
The most important thing is that if you are earning officially you have to pay tax and social security somewhere in the EU (or US) and need to be able to prove it.
Z
T.K.L.V.
23 June 2011 17:06:42
6
Great information Zabz, I will contact the embassy with this question. Thanks much.
T.K.L.V.
11 July 2011 02:47:58
6
Hi Zabz,
I'm still hunting for tax information. You made a good suggestion - contact the US Embassy. Unfortunatly their reply was,Unfortunately, the reply was:
"There is no IRS representative at the Embassy.
We suggest you to contact the IRS' branch office in Frankfurt with this issue."
So I followed up as suggested but Frankfort responded:
"Under the U.S. / Hungarian income tax treaty, if you perform personal services as an employee located in Hungary, you are subject to taxation in Hungary. We cannot give you any specific taxation information (i.e. tax rates, social security, Medicare, etc.) for Hungary, as the IRS does not provide foreign tax assistance. Please contact the Hungarian tax authority."
*Sigh
How does one contact the "Hungarian Tax Authority"?
Have you learned any more about how Hungary taxes foreign workers?
Thanks again!
Harmonie
11 July 2011 08:42:19
19273
Hello T.K.L.V.!
You should start a new thread on the Budapest forum for better visibility.
Thank you,
Harmonie,
Zabz
11 July 2011 12:42:38
31
This means you have to pay both HU and US taxes. You will probably have to pay the same taxes as Hungarian but need to look into that in more details
Then use the 183 days rule... Now for the legal stuff...
Not exactly your case but should help:
http://eur-lex.europa.eu/LexUriServ/Lex … 83:EN:HTML
Article 6
General rules for determining residence
1. For the purposes of this Directive, "normal residence" means the place where a person usually lives, that is for at least 185 days in each calendar year, because of personal and occupational ties or, in the case of a person with no occupational ties, because of personal ties which show close links between that person and the place where he is living.
However, the normal residence of a person whose occupational ties are in a different place from his personal ties and who consequently lives in turn in different places situated in two or more Member States shall be regarded as being the place of his personal ties, provided that such person returns there regularly. This last condition need not be met where the person is living in a Member State in order to carry out a task of a definite duration. Attendance at a university or school shall not imply transfer of normal residence.
2. Individuals shall give proof of their place of normal residence by any appropriate means, such as their identity card or any other valid document.
3. Where the competent authorities of the Member State of importation have doubts as to the validity of a statement as to normal residence made in accordance with paragraph 2, or for the purpose of certain specific controls, they may ask for any information they require or for additional proof.
Do not spend more than 183 calendar days in Hungary. Travel around and collect all your reciepts as proof.
Taxation is the competance of the Meneber State, what you have to establish is your 'normal' residence within the EU, or if it is the US then be a consultant based in a country that has a double taxation agreement (DTA) with the US, you will also need a work permit for that country (work permits are issued by the country and do not cover the whole of the EU). Belgium and the UK have a DTA, and by the looks of it so does Germany.
Once you are established as a consultant in a DTA country with a valid work permit contact the local IRS office and establish whether you pay taxes and social security in your EU 'normal residence' or the US.
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