As a Hungarian freelancer, Amazon seller, investor, or business owner earning U.S.-source income, you may need to obtain an ITIN (Individual Taxpayer Identification Number) issued by the Internal Revenue Service (IRS).

The U.S.-Hungary Tax Treaty allows Hungarian residents to benefit from reduced or zero U.S. withholding tax on certain types of income such as dividends, interest, and royalties. However, to claim these treaty benefits and to receive payments without interruptions from platforms like Stripe, Payoneer, Amazon, Google AdSense, Fiverr, or Upwork, a valid ITIN is required.

As an IRS-Certified Acceptance Agent (CAA), House of Bookkeepers helps Hungarians to obtain their ITIN quickly, safely, and entirely online, keeping passports local and secure.

 

What Is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number (format: 9XX-XX-XXXX) issued by the IRS for individuals who must file or report U.S. taxes but are not eligible for a U.S. Social Security Number (SSN).

🔍 What an ITIN Is NOT

  • Not a U.S. work permit
  • Not an immigration status
  • Not a substitute for an SSN
  • Not authorization to work in the U.S. 

However, an ITIN is required for individuals in Hungary who want to receive payments legally from U.S. platforms such as Stripe, Upwork, Fiverr, Amazon KDP, Amazon Seller Central, Google AdSense, Etsy, Payoneer, and more.

 

Why Hungarian Residents Need an ITIN

Thousands of professionals and businesses in Hungary work with U.S. clients or earn income through American platforms. Without an ITIN, U.S. payers are required to withhold 30% of payments automatically.

With an ITIN, you can:

  • Submit Form W-8BEN to claim U.S.-Hungary tax treaty benefits

  • Reduce or eliminate 30% withholding on royalties, dividends, and digital income

  • Receive uninterrupted payments via Stripe, Payoneer, Amazon, Google AdSense, Upwork, Fiverr

  • File Form 1040-NR to claim refunds or stay compliant with U.S. tax laws

  • Maintain verified accounts on global payment platforms

  • Build a U.S. tax history for long-term business or LLC operations

Who in Hungary Commonly Needs an ITIN

Freelancers & Digital Professionals

Designers, developers, consultants, writers, and creators in Hungary earning through Upwork, Fiverr, AdSense, Amazon KDP, or Payoneer often need an ITIN to:

  • File W-8BEN and apply treaty benefits

  • Avoid payment holds or account verification issues

  • File Form 1040-NR for compliance or refunds

Amazon & E-Commerce Sellers

Hungarian sellers using Amazon FBA, Shopify, or Stripe Atlas need an ITIN to:

  • Complete W-8BEN or W-9 forms accurately

  • Avoid the default 30% withholding tax

  • Manage U.S. tax filings for marketplaces or LLCs

Property Investors

If you rent or sell U.S. real estate, FIRPTA (Foreign Investment in Real Property Tax Act) withholds 15% of the sale price.

Having an ITIN allows you to file Form 1040-NR and reclaim excess withholding.

 

Filing Jointly with a U.S. Spouse

If your spouse is a U.S. citizen or green card holder, an ITIN is required to file a joint return and access family-related tax benefits.

LLC Owners & Entrepreneurs

If you own or manage a U.S. LLC, an ITIN is often needed for IRS filings. Typical supporting documents include:

  • Articles of Organization

  • IRS EIN Confirmation Letter (CP575)

  • Operating Agreement (mandatory for multi-member LLCs)

Benefits of Having an ITIN from Hungary

    • File U.S. tax returns legally

    • Avoid or reduce 30% U.S. withholding

    • Claim refunds on overpaid taxes

    • Apply U.S.-Hungary tax treaty benefits

    • Reclaim FIRPTA withholding on property sales

    • Open and maintain U.S. business or payment accounts

    • Build long-term credibility for U.S.-based business operations

 

U.S.-Hungary Tax Treaty Benefits

Hungary has an active tax treaty with the United States, allowing Hungarian residents to benefit from reduced withholding on U.S.-source income. Even when treaty benefits do not apply, an ITIN is required for platform withholding and reporting (Stripe, Amazon, Payoneer), U.S. LLC or business tax filings, and banking, KYC, and FATCA compliance. Submitting Form W-8BEN with a valid ITIN ensures proper classification and uninterrupted payments while enabling Hungarian residents to fully leverage U.S.–Hungary tax treaty benefits.

 

Income Type Default Rate Treaty Rate(Thailand)
Dividends 30% 15%(5% in qualifying cases)
Interest 30% 0%
Royalties 30% 0%

 

To Use Treaty Benefits, You Need:

  • A valid ITIN
  • A properly completed Form W-8BEN
  • Form 8233 (only for academic or research income) 

 

How to Apply for an ITIN from Hungary (2026)

Step 1: Confirm Eligibility

Valid U.S. tax reasons include:

  • Filing a U.S. tax return (Form 1040-NR)
  • Claiming treaty benefits via W-8BEN
  • Selling or renting U.S. property (FIRPTA)
  • Filing jointly with a U.S. spouse
  • Owning or managing a U.S. LLC
  • Receiving U.S. scholarships or research grants
  • Financial or banking compliance (KYC / FATCA) 

If you only need W-8BEN for platform compliance, you may qualify under an exception and not need to attach a tax return.

ITIN Eligibility Scenarios for Hungarian Applicants

Reason for Applying Description W-7 Box to Check Tax Return Required?
Filing a U.S. tax return Reporting freelance, investment, or property income b – Nonresident alien filing a U.S. tax return ✅ Yes (attach Form 1040-NR)
Claiming treaty benefits via W-8BEN Providing ITIN for compliance and avoiding account holds on Stripe, Amazon, Payoneer, AdSense h – Exception 1(d): Third-party withholding ❌ No (treaty exception category)
U.S. rental or sale (FIRPTA) Reporting real estate sale or rental income b (if filing) or as h (if exception) ⚙️ Depends
Filing jointly with a U.S. spouse Joining a U.S. joint tax return e – Spouse of U.S. citizen/resident ✅ Yes (joint return)
Owning or managing a U.S. LLC Required for foreign reporting or EIN activation h – Exception 1(d) or b (if filing) ⚙️ Depends (usually yes for multi-member LLCs)
Receiving U.S. scholarships or grants Nonresident student or researcher receiving taxable U.S. funds f – Nonresident alien student/professor/researcher ⚙️ Depends on institution
Bank or financial compliance U.S. banks, brokers, or processors require a U.S. tax ID for KYC/FATCA h – Exception 1(d) ❌ No (exception category)
Refund claim for excess withholding Requesting refund on U.S. income (e.g., 1042-S or 1099-MISC) b – Nonresident alien filing a U.S. tax return ✅ Yes (attach Form 1040-NR)

Note: Exception 1(d) applies to platform withholding, U.S. banking compliance, and LLC filings.

 

Step 2: Complete Form W-7

  • Official IRS ITIN application
  • Accuracy is critical to avoid delays or rejection 

Step 3: Gather Required Documents

  • Valid passport (scan accepted via CAA)
  • U.S. tax return (if required)
  • Supporting documents (W-8BEN, income statements, contracts) 

Step 4: Apply Through a Certified Acceptance Agent (CAA)

With House of Bookkeepers:

  • Passport stays in Hungary
  • Local identity verification
  • Certificate of Accuracy (COA) issued
  • Secure IRS submission 

 

ITIN Processing Timeline (2026)

  • Standard: 8–13 weeks
  • Peak season: 13–16 weeks

In many cases, we can retrieve your ITIN number within ~2.5 months, although the official IRS letter (CP565) may arrive later by mail.

Quick FAQs for ITIN applicants from Hungary

Q1. Can I apply for an ITIN from Hungary?

Yes. With House of Bookkeepers as your IRS-Certified Acceptance Agent (CAA), you can apply directly from Hungary; there’s no need to send your passport to the U.S.

Q2. Does Hungary have a tax treaty with the U.S.?

Yes. The U.S.-Hungary tax treaty provides reduced withholding rates on dividends, interest, and royalties. You’ll need an ITIN to claim these benefits using Form W-8BEN.

Q3. How will I know if my ITIN is approved?

You’ll receive IRS Letter CP565 once your ITIN is issued. We notify you as soon as it’s assigned.

Q4. Do I need a U.S. address?

A U.S. address is not required. The IRS can send your ITIN letter directly to your Hungarian address.

Having a U.S. residential or mail forwarding address may speed up delivery.

Alternatively, we can receive the letter at our office and provide a scanned copy (though this is not recommended).

Q5. How will you verify my identity?

We’ll request a selfie holding your passport’s photo page to ensure secure and fully compliant verification before submission.

 

Apply with Confidence

House of Bookkeepers provides a simple, accurate, and fully IRS-compliant ITIN application process for professionals in Hungary.

📍 IRS-Certified Acceptance Agent (CAA) – Hungary Service

🌍 Website: https://www.houseofbookkeepers.com

Start your ITIN application today and enjoy treaty benefits, faster payments, and stress-free U.S. tax compliance.