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Non-EU National Sole Trader/Contractor in Budapest

I'm an American living in Budapest for almost 2 years. Currently I work for a Hungarian company and my residence permit is tied to that work contract. Now I have an opportunity to work 100% remote for an American company (as a Sole Trader, Contractor, Consultant how ever you want to call it).

I would like to stay in Budapest. Basically I need ideas/help to resolve 2 issues: 1 my resident permit and 2 how to pay myself in Hungary from my American income (preferably legally and with the the least tax burden). Though I'm willing to consider all options.

I've done a lot of reading and talking with people. Seems my options are:

- Getting "hired" by another Hungarian company. Pay the owner my Hungarian "salary" + taxes. The "salary" could either be part or all of my actual American income. This option seems to have the highest tax burden.

- Staying under a Miscellaneous residence permit. Requires showing the Immigration Office 2 years worth of living costs in a bank account. Not allowed to work under this permit, but could work regardless. Best option financially, but not fully legal.

- Registering as a Sole Trader in Hungary and invoicing the US company as a Hungarian sole trader. This option would likely require hiring legal help. I don't fully understand the tax burden of a sole trader in Hungary or the resident permit implications.

If anyone has experience with this type of situation, I would love to hear your advice. Look forward to hearing from you guys!

Budapest Forum