Avoid mistakes, proven solutions

Setting up a company in Hungary?

Find out how to do it in a legally compliant way:

Fast company setup

Lowest EU corporation tax

0% withholding tax

9% corporate tax rate

You can reduce your tax burden legally. We will be happy to advise you in detail and offer you a free initial consultation.

Watch video

Ask a Question

(Response time under 24 hours):

Name *

Email *

Brief Summary *

I agree to the processing of my personal data.

Estimated Annual Revenue

Please share your Estimated Annual Revenue with us, so we know which jurisdiction is best suited for you (special taxes for certain profits).

Phone

Pros and cons of setting up a company abroad

If you move your residence:

Your home country may tax certain assets when you relocate
Personal income is generally taxed at a flat rate of 15% in Hungary

Without emigrating:

If the company is managed from your home country, it may be taxed there
Ownership levels can influence how profits are taxed

What makes Hungary attractive as a business location?

Hungary is an EU member state in Central Europe with around 9.6 million people and uses the Hungarian forint (HUF).

Corporation tax is a flat 9% (one of the lowest in the EU), plus a municipal business tax of up to 2% depending on location. With correct structuring, no withholding tax applies to dividends, interest, or royalties paid to foreign corporations. No wealth tax. Due to its extensive DTA network, Hungary permits 100% foreign ownership.

For individuals: flat 15% income tax. CFC rules and place of effective management remain key risks if substance and decision-making do not align.

A Hungarian Kft. requires minimum share capital of HUF 3 million (approx. EUR 8,000). Incorporation takes 1–2 weeks. A local managing director is not legally mandatory, but governance and clear decision-making are crucial. Hungary is not on any EU blacklist and offers straightforward visa/residence options. Bank accounts available requiring clear source of funds and full KYC.

Contact us for an individual analysis and, where appropriate, better alternative structuring options.

FAQs

Which locations worldwide are best suited to paying as little tax as possible?

	Tax Burden	Banking	Reputation	Bureaucracy	Legal Security	Costs
USA	21-0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Singapore	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 2,950
Hong Kong	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Cyprus	15%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Malta	5%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 2,500
Ireland	12,5%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,950
Trust	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 4,900
England	25-19%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,000

Tax compliance in your country of residence

Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income, in some cases even if profits are not distributed.

Depending on your personal situation, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.

To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.

Our advisers will be happy to review your case and advise you accordingly.

1.

Analyse your needs

We assess your situation to define goals, risk tolerance, tax exposure and priorities for asset protection.

2.

Carry out a location analysis

We compare potential jurisdictions based on tax laws, banking access, compliance requirements and your country of residence.

3.

Incorporate the company and, if needed, set up a foundation

Open accounts and custody accounts and, if required, implement asset management