Hungary has known past years important transformations, from internal focus to an integrated market in the European system, with a per capita income nearly two-thirds that of the EU-27 average.
Budapest is emerging as a decisive Business hub in Europe, and represents great opportunity for entrepreneurs looking to expand their business. It is also a great low tax alternative to Cyprus since its banking crash. From 2017, Hungary's Corporate tax rate was reduced to a flat 9%, without limit. A Hungary company can be fully owned and controlled by international directors and shareholders.
Main requirements for Hungary Company
- Only one shareholder and one director is required to fulfill Hungary company formation requirements.
- Most of the Hungarian companies are required to register for Value Added Tax (VAT)
- Corporate shareholders are permitted.
- Registered address required
- Minimum share capital - HUF 3.000.000 (appx €9600) - this needs to declared not deposited
- An Accountant should be appointed prior to the company application
Hungarian incorporation is not perceived as an offshore corporate structure or a tax haven. Registering a corporate entity in Hungary has many advantages such as low (or in some cases none) capital gains and dividends tax. Hungary can also be an excellent jurisdiction for registering a holding company, as Dividends paid to any resident or non-resident person are legally tax-free. Paid royalties are considered expenditures and can be deducted from Hungary corporate profits. Withholding tax is 0%.
Please contact us and we will be pleased to discuss matters in greater detail.