Work activity that the U.S. considers self-employment under U.S. Social Security law
often qualifies as self-employment under Hungarian law. Under the agreement, a self-employed
worker is generally subject to only the laws of the country in which the worker performs
the work. However, the agreement provides for an exception if a person transfers his
or her self-employment activity from one country to the other for five years or less.
In this case, the self-employment activity remains subject to the social security
laws of the country from which the worker transferred the activity and exempt from
social security coverage and taxation in the other country.