Hungary, officially the Republic of Hungary, is a member state of the European Union located in Central Europe. Neighboring countries are Austria, Slovenia, Croatia, Serbia, Romania, Ukraine and Slovakia. Hungary offers many business opportunities and is also a good springboard to expand into Eastern Europe and its markets.
The main advantage of doing business in Hungary is low taxes and little administrative burden. Although it is not a tax haven in the traditional sense of the word, small and medium-sized companies here have almost half the income tax rate compared to the Czech Republic. The business environment is clear and favorable.
Capital city: Budapest
Official language: Hungary
Currency: Hungarian forint (HUF)
The legal system of Hungary enshrines similar types of commercial companies as Czech law.
KFT provides a great opportunity to do business within the EU or anywhere else in the world and can be used for holding purposes, property ownership, but also for normal business activities.
he company is registered for VAT and is assigned a tax registration number immediately upon incorporation (TIN – kommuník adószám). KFT must have a bank account maintained in Hungary, the establishment of which requires the personal presence of the executive, and this account is reported to the tax authority and is also published in the online Hungarian register.
One of the main advantages of the Hungarian jurisdiction is the two corporate income tax rates: 19% and 9%. The reduced rate can be used for tax base up to HUF 500 million (approx. CZK 42 million). In the Czech Republic, with the same tax base, it is 19%.
The VAT rate in Hungary is the highest in the entire EU – 27%. A reduced rate of 5% applies to certain types of food.
Personal income tax is the same for all, namely 15%.
In Hungary, dividend payments are exempt from withholding tax, regardless of the destination to which they are paid. So it doesn’t matter if he leaves, for example, for England or Seychelles Ltd. Invoicing to or from Seychelles is also exempt from withholding tax.
Another interesting benefit is the exemption from income tax on capital gains.
Revenue from license fees is subject to a 5% tax.
The time required to start the activity of a new company is in the order of weeks (the time from the decision on establishment to the day when the company court (Cégbíroság) issues a confirmation of the application for registration). By obtaining this confirmation, the new company becomes a full-fledged legal entity. The extract from the commercial register can be obtained in approximately one month.
Are you interested in setting up a Hungarian company? Take advantage of the non-binding consultation.
Establishment of the company, its settlement, delivery of apostilled documentation, bookkeeping. All under one agency.
Do you have a foreign company and don’t know if you have fulfilled all your legal obligations? We can help you to check and comply with all government requirements.
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Do you already have an offshore company? Do you want better conditions? Change your registration agent.
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In 1996 we became a registration agency as Parker & Hill Ltd. In 2011 we underwent a transformation and began to operate internationally under Parker & Hill Inc.
We are a member of the international consortium NWMS Ltd. We incorporate companies directly for you within 16 jurisdictions. We are not re-seller, we are the registration agency.
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