Hungary has become a highly attractive destination for entrepreneurs and businesses looking to establish a European presence. With its favorable tax environment, strategic location, and efficient company formation process, Hungary offers numerous advantages for startups and established companies alike. Below, we explore the key benefits of company incorporation in Hungary and why it should be your top choice for expanding your business.

Low Corporate Tax Rate

One of Hungary’s most significant advantages is its low corporate tax rate of 9%, the lowest in the European Union. This tax-friendly regime allows businesses to optimize their profits and reinvest in growth without excessive tax burdens.

Fast and Efficient Company Formation

Setting up a company in Hungary is a straightforward process that can be completed in as little as 3-5 business days. The requirements are minimal, and businesses can be registered remotely with the help of a local legal representative. This efficiency makes Hungary one of the easiest places to start a business in Europe.

100% Foreign Ownership Allowed

Unlike some countries that impose restrictions on foreign ownership, Hungary allows 100% foreign ownership of businesses. This means international investors can fully control and operate their companies without needing a local partner.

Access to the European Market

Hungary is a member of the European Union (EU) and the Schengen Zone, providing businesses with unrestricted access to a market of over 500 million consumers. Companies incorporated in Hungary can trade freely within the EU, making it an ideal base for international expansion.

Attractive VAT System

Hungary’s VAT system is advantageous for businesses engaged in cross-border trade. Companies registered for VAT can benefit from intra-community VAT exemptions when trading within the EU. Additionally, Hungary offers a favorable VAT refund process, making it easier to manage cash flow.

Skilled and Cost-Effective Workforce

Hungary boasts a highly skilled, multilingual workforce, particularly in industries such as IT, finance, and manufacturing. Labor costs in Hungary are significantly lower than in Western Europe, allowing businesses to hire qualified professionals at competitive rates.

Strong Banking and Financial Infrastructure

Hungary has a well-developed banking sector with easy access to corporate banking services. Opening a business bank account is straightforward, and many international banks operate in the country, ensuring smooth financial transactions.

Government Incentives and Grants

The Hungarian government actively supports businesses through tax incentives, grants, and investment subsidies. Companies engaged in innovation, technology, and manufacturing can benefit from various funding programs designed to encourage economic growth and job creation.

Stable Economy and Business-Friendly Environment

Hungary offers a stable and predictable economic environment with strong support for entrepreneurs. The country’s legal and regulatory framework is aligned with EU standards, ensuring transparency and security for investors.