Hungary

Compliance/Financial Considerations

If you intend to do any of the following in Hungary, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2.

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Hungary, consult the campus Research Administration Compliance Office at 642-0120.

Tax Reporting. The University and its employees may be taxed in foreign countries. The tax implications for operating in Hungary may be found at the Internal Revenue Service’s United States-Hungary Income Tax Convention. For further clarification, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance.

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122. Transparency International’s 2018 survey of perceived public sector corruption rated Hungary at 46 out of 100 (64th out of 180 countries reviewed, i.e.  somewhat corrupt).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.  

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations

Articles

The US State Department's page on HUNGARY may be found HERE.

Personal Safety

AUTHORITIES IN HUNARY WILL TIGHTEN NATIONWIDE RESTRICTIONS FROM NOVEMBER 10 AS PART OF MEASURES TO COMBAT RISING CORONAVIRUS (COVID-19) DISEASE CASES. A 2000-0500 CURFEW WILL BE IMPOSED, DURING WHICH NONESSENTIAL MOVEMENT OUTSIDE ACCOMMODATION WILL BE PROHIBITED; COMMUTERS WILL STILL BE PERMITTED TO TRAVEL TO WORK, THOUGH BUSINESSES WILL BE REQUIRED TO CLOSE BY 1900.  PROTECTIVE FACE COVERINGS REMAIN MANDATORY ON PUBLIC TRANSPORT AND IN ENCLOSED PUBLIC SPACES.  HUNGARY IS ALSO MAINTAINING INTERNATIONAL ENTRY RESTRICTIONS. AUTHORITIES COULD REIMPOSE, EXTEND, FURTHER EASE, OR OTHERWISE AMEND ANY RESTRICTIONS WITH LITTLE TO NO NOTICE ON DISEASE ACTIVITY OVER THE COMING WEEKS.

Note: this page contains basic risk information. For more details, please contact the Risk Services Office at risk@berkeley.edu.

If you are traveling to Hungary on University-related business, please sign up for the University’s travel insurance program by going here. For more information on the travel insurance program, please go here

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic

The quality of medical care in Hungary is generally adequate in cities and variable elsewhere. In a health emergency, dial 112 for a public ambulance or 107 for the police. Pharmacies (gyogyszertar or patika) are usually well-stocked and are open from 8 am to 8 pm Mondays through Fridays. The United States Embassy has compiled this list of hospitals in Hungary and this list of doctors and dentists, but assumes no responsibility or liability for the professional ability, reputation, or quality of services provided.

Air pollution can exceed tolerable levels in Budapest, Debrecen, and Gyor. If you have a chronic respiratory condition such as asthma, please consult a medical professional prior to your trip and carry appropriate medications.

Drinking water in Hungary is usually safe. Travelers should avoid raw meat dishes and unpasteurized dairy products, which frequently harbor bacterial and parasitic pathogens.

Disease risks include:

  • Tick-borne encephalitis. The peak months for infection are May, June, and August.
  • Lyme disease, another tick-borne illness. The peak months for infection are March through September. Forested regions present the highest risk. If hiking, camping, biking, fishing, or hunting in endemic areas, take increased precautions against ticks.
  • Tularemia, transmitted by infected rodents or insects who prey on them.

Hungary has a relatively low crime rate. Travelers are most at risk for petty theft, especially when using public transportation and visiting tourist areas, including restaurants, hotels, and the Vaci Utca pedestrian mall in Budapest. Restaurants and taxi drivers frequently overcharge foreigners; with either, it is best to negotiate a price before receiving the service and to avoid paying by credit card.

Hungary is subject to political demonstrations by unions, right-wing fringe groups, and others. The police tend to disperse protests with force, so demonstrations should be avoided. The police also have a poor record of recovering stolen items.

Legal/Political

Criminal Penalties: You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, or imprisoned. Furthermore, some laws are also prosecutable in the U.S., regardless of local law. 

  • Carry your passport with you at all times. Local police may require you to show documentation to establish your identity upon request. Hungarian police may take you into custody if you attempt to prove your identity with documents other than a passport.
  • Hungary has a zero tolerance policy for driving under the influence of alcohol or drugs. Penalties are severe, including significant jail time.

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately. 

LGBTI Travelers: There are no legal restrictions on same-sex sexual relations or the organization of LGBTI events in Hungary. While improving, entrenched societal LGBTI discrimination continues to make overt LGBTI identity difficult.