Brexit will affect the social insurance of British citizens working in Hungary, with the exact effects depending on whether the United Kingdom and the EU ratifies the Withdrawal Agreement until January 31, according to law firm Lakatos, Köves and Partners.
In case the ratification happens, U.K. citizens working in Hungary will still be subject to EU laws regarding social security until the end of 2020. If it does not happen until January 31, a no-deal Brexit happens, meaning that the applicability of EU law will cease to exist with immediate effect.
"The status of British employees working and living in Hungary depends on whether the parties will ratify the Withdrawal Agreement," says Balázs Kántor, senior associate at Lakatos, Köves and Partners.
In most cases, under current EU laws, EU citizens working in Hungary become part of the Hungarian social security system, meaning that they must pay contributions in Hungary too. Usually, fulfilling the contribution requirement is the responsibility of the Hungarian employer who employs the EU citizen, according to Hungarian regulations
Kántor says that even in the case of a no-deal Brexit, Hungarian social security laws will still apply to U.K. citizens in the country, but the conditions may differ, as they will be viewed as third-state citizens.
The expert says, that while Hungarian legislators have created laws in order to avoid complications related to Brexit, it is difficult to say whether they will cover all possible scenarios.