Doing Business in Hungary: Guide for Non-Residents
Why Choose Hungary?
Hungary combines a flat 9% corporate income tax rate with EU membership, an established manufacturing and services sector and an electronic company registration procedure. Companies are registered by the Court of Company Registration, and the Magyar Nemzeti Bank (MNB) acts as the single supervisor of the financial sector.
Key Benefits
- Membership of the European Union
- Access to the European Single Market
- Flat 9% corporate income tax rate
- No withholding tax on dividends, interest and royalties paid to companies
- Electronic company registration, from 1 working day in the simplified procedure
- A single financial supervisor for payment, e-money and Virtual Asset services
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Company Forms in Hungary
Limited Liability Company (Kft.)
The korlátolt felelősségű társaság (Kft.) is the most widely used form for operating businesses. The minimum share capital is HUF 3,000,000, and each member’s contribution must be at least HUF 100,000. Members are not liable for the company’s debts beyond their contribution.
Private Company Limited by Shares (Zrt.)
The zártkörűen működő részvénytársaság (Zrt.) is a company limited by shares whose shares are not listed on a stock exchange. The minimum share capital is HUF 5,000,000. It suits larger projects, investor-backed businesses and structures that plan to issue shares.
Taxation Overview
Corporate Income Tax
A flat 9% rate applies to the taxable profit of Hungarian companies. In certain cases, a minimum tax base equal to 2% of total revenue may apply.
Local Business Tax
Municipalities levy local business tax at a rate of up to 2% of adjusted net turnover. It is deductible for corporate income tax purposes.
Value-Added Tax
The standard VAT rate is 27%. Reduced rates of 18% and 5% apply to specific goods and services.
Withholding Tax and Other Charges
No withholding tax applies to dividends, interest and royalties paid to companies. Employers pay a 13% social contribution tax, and companies other than micro and small enterprises pay a 0.3% innovation contribution.
Company Registration in Hungary
Companies are registered by the Court of Company Registration. The procedure is fully electronic, and representation by an attorney is mandatory.
- The articles of association are prepared and countersigned by an attorney;
- The application is filed electronically within 30 days of signing the articles;
- In the simplified procedure based on model articles, the court decides within 1 working day;
- In the general procedure, the court decides within 15 working days;
- No registration duty applies to a Kft.; for a Zrt., the duty is HUF 50,000 in the simplified procedure and HUF 100,000 in the general procedure.
Licensing and Regulation
The Magyar Nemzeti Bank (MNB), Hungary’s central bank, is the integrated supervisor of the financial sector. It authorises and supervises credit institutions, payment institutions, electronic money institutions, investment firms and insurers.
Since 30 June 2024, the MNB has also supervised Virtual Asset service providers. Under the EU MiCA Regulation, providers established in Hungary apply to the MNB for authorisation, and the transitional period for existing providers ended on 1 July 2025.
From 1 July 2025, Hungarian law also introduced national rules on the validation of certain Virtual Asset exchange transactions, which should be assessed for each business model.
Key Considerations
Before establishing a company in Hungary, it is important to plan for the registered office, local business tax in the chosen municipality, VAT registration, statutory accounting and annual financial statements, and the involvement of an attorney in all company registry filings.
Hungary is particularly well suited for:
Our Services in Hungary
We assist with:
- Company registration (Kft. and Zrt.);
- Registered office address (seat) and delivery agent arrangements;
- Accounting and tax reporting;
- Employment registration and payroll;
- Corporate bank account opening;
- Legal advisory and corporate administration;
- Ongoing business support.
Services Available in Hungary
Frequently Asked Questions
Yes. Foreign individuals and legal entities may establish and own Hungarian companies. The registration is filed electronically by an attorney, who represents the founders before the Court of Company Registration.
The most common legal entity is the Limited Liability Company (Korlátolt felelősségű társaság – Kft.), with a minimum share capital of HUF 3,000,000.
The corporate income tax rate is a flat 9%. Local business tax of up to 2% and other charges may also apply, depending on the municipality and the size of the company.
The Magyar Nemzeti Bank (MNB) authorises and supervises payment institutions, electronic money institutions and Virtual Asset service providers in Hungary.
Yes. Hungarian companies are required to maintain accounting records and submit statutory financial statements and tax returns in accordance with applicable legislation.