Set up Hungarian Kft. Korlátolt felelősségű társaság (limited) share capital HUF 3.000,000.-
Taxation in for Hungarian Companies:
Corporation tax 9%
VAT is 27%.
Trade Tax 2%
If a foreign citizen set up a company in Hungary and does not have a residence in Hungary – then he must authorize a Hungarian representative for postal purposes, which will be recorded in the certificate of incorporation.
Set up price: € 2900,00
It is like English Ltd. and this form is the most popular
What is included in this price:
• Up to 2 hours of consulting
• Certificate of Incorporation
• Article of Association
• Company registration summary for the notary
• Notarization of the company’s founding documents
• Authentication of a copy of the signature title
• Business Registration Certificate
• One-year legal company address
• Application for Tax number
• Assistant for opening a bank account
• Checking the company name
• Representative Person
• Preparation of documents
• Company registration documents
• Appointment with the notary for sig the documents
• Notary’s charge
• Preparation and placement of company nameplate
• Mail forwarding (email) for one year
• Notification of incoming postal shipments and letters
• Renting a mailbox
• Storing postal items
• Representation at tax authorities
• Stamp duty of the court of registration
The court registration generally registers the enterprise within in 1-2 weeks .
The court of registration usually registers the business within 1-2 weeks.
We offer on request (extra charge)
•Accountants and tax consultants
•Various office services
Taxation in Hungary
1. Personal Income Tax (PIT)
• Flat Rate: Hungary has a single-rate personal income tax system. The tax rate is 15% for all individuals, regardless of income level.
• Tax Base: Includes income from employment, self-employment, capital gains, and other sources. Deductions, such as family tax allowances, can reduce taxable income.
• Family Tax Allowance: Families with children receive tax benefits based on the number of children, providing significant tax relief.
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2. Corporate Income Tax (CIT)
• Two-Tier Rates:
o 9%: Standard corporate income tax rate, one of the lowest in the European Union.
o Additional local business tax (LBT): Municipalities can impose a tax of up to 2% on net sales revenue.
• Tax Incentives: Hungary offers numerous incentives for investment, research and development (R&D), and companies creating jobs in specific sectors.
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3. Value-Added Tax (VAT)
• Hungary has one of the highest VAT rates in Europe:
o 27%: Standard rate, applicable to most goods and services.
o 5%: Reduced rate for essential items like medicine, books, and certain food products.
o 18%: Another reduced rate for specific goods, like some dairy and bakery products.
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4. Social Contributions
• Employers and employees must contribute to Hungary’s social security system:
o Employee Contributions: Around 18.5% of gross income, covering health insurance, pension, and unemployment benefits.
o Employer Contributions: A 13% social contribution tax, though specific reductions apply for certain industries or employees under 25 or above 55 years.
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5. Local Taxes
• Municipalities can impose:
o Real Property Tax: Based on land or building value.
o Tourism Tax: For accommodations, up to 4% of the nightly rate.
o Motor Vehicle Tax: Based on engine power and environmental classification.
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6. Other Taxes
• Excise Duties: On products like alcohol, tobacco, and fuel.
• Transfer Tax: A 4% property transfer tax applies to real estate purchases.
• Innovation Contribution: Certain companies must contribute 0.3% of net sales revenue for R&D purposes.
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Tax Compliance
• Hungary encourages electronic tax filing and has implemented strict monitoring systems like online invoicing to reduce tax evasion.
• Non-compliance or errors can lead to audits and fines.