COMPANY FORMATION IN HUNGARY


Today, Hungary offers the most friendly terms of registration, management and taxation of companies in continental Europe. In 2017, Hungarian companies will pay the lowest corporate income tax in the EU (9%). Besides, Hungary offers excellent conditions for the creation of holdings and for operations with intellectual property (royalties). Together with the automatic registration of VAT number (which is very important when trading in the EU), it makes Hungary one of the best countries for business.

Hungarian company key features

  • Tax minimizing structures available.
  • Easy VAT registration
  • Minimum share capital to EUR 10,000, half of which in cash
  • Minimum 1 director (any nationality), but local, Austrian director recommended to establish tax residency

  • Popular applications with Hungarian companies

    TRADING COMPANY

    Currently, the income tax in Hungary for companies whose earnings do not exceed HUF 500 million (about 1.8 million euros) is just 10% . It is one of the lowest rates in the EU. Also in Hungary a VAT number issued to the company during the registration and there is no need for additional expenses (office rent, hiring employees, etc.) to maintain it. This allows easy trading activities throughout the EU using the VAT rate of 0%.

    HOLDING

    Hungary offers excellent conditions for holding companies. Dividends received from companies registered in the EU are not subject to income tax. Subsidiaries are also exempted from dividend taxation when the following conditions are met:

  • The company owns at least 30% of the shares.
  • The company owns the capital for at least 1 year
  • The ownership is declared to the tax office within 60 days after purchase
  • Subsidiaries are not "controlled foreign corporations" (these are companies in which at least 10% owned by a resident of Hungary).
  • VALUE ADDED TAX (VAT). EU VAT regime. Standard rate for inland sales is 20%.

  • How to register a company in Hungary?

    1. We find the optimal solution to maintain your successful business in Hungary. Contact us.
    2. We will register the company and VAT number. To find out more, please contact us.