Hungary joined the European Union in 2004. Hungary is a member of the UN and NATO. The national currency is Hungarian Forint. The official language is Hungarian, but English is widely used for business communication. Hungary has concluded double taxation prevention treaties with more than seventy countries.
The corporate tax rate in Hungary is 9%. In addition, each company is subject to local tax, the amount of which cannot exceed 2% of the Company’s turnover, from which some expenses are deducted. Local tax rates vary from municipality to municipality, so it depends on municipality in which the company is registered.
One of the most attractive advantages of Hungarian company is automatic VAT registration. Basically, the Company is assigned a VAT number in the moment of its registration. Another important advantage is the possibility to open account in a Hungarian bank for this Hungarian company.
Hungary is a great alternative to Cyprus in the meaning of holding regime and royalty schemes. In addition, the Hungarian company can be used for traditional business (trade, services).
It should be considered that along with the possibility to open a company in Hungary remotely, a visit is still required to open a Bank account. It is also possible to purchase ready-made companies. When purchasing a ready-made company, you also need to visit the Bank for the change of signatory.
Hungarian companies must keep accounting records and prepare annual financial statements. The VAT returns are usually submitted each quarter.
Audit is required when:
In other cases, the audit is optional.