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  • Company in Hungary

    10% CORPORATE TAX

    0% DIVIDENDS

    0% ROYALTIES

  • Company in Hungary

    10% CORPORATE TAX

    0% DIVIDENDS

    0% ROYALTIES

  • Company in Hungary

    10% CORPORATE TAX

    0% DIVIDENDS

    0% ROYALTIES

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Company formation in Hungary

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Hungary offers one of the most attractive tax regimes in EU. Centrally located EU state is convenient for general trading. On the other hand, beneficial tax regime makes Hungary top-location for holding companies as well as licensing companies.

Hungary company Key features

  • Corporate income tax: 10% on income less then 500 million Huf and 19% on the excess.
  • Local business tax is 1-2%, and is calculated simultaneously with the corporate income tax. However, there are exceptions, for example, royalty revenues are completely exempted.
  • Min. share capital 500.000.- Huf
  • No restrictions on nationality of director (private person, min. 1)
  • Company formation packages available. Ask now.

 

Hungary company application


KFT AS TRADING COMPANY

Corporate income tax for Hungarian trading companies is 10%.

The key advantages are:

  • Fast incorporation and VAT registration process. Ask now
  • Convenient central European location
  • Corporate income tax: 10% on income less then 500 million Huf and 19% on the excess.
  • Local business tax is 1-2%, and is calculated simultaneously with the corporate income tax. However, there are exceptions, for example, royalty revenues are completely exempted.

Contact us for trading company package. Or ask for alternative application.


KFT AS HOLDING COMPANY

In Hungary, dividends received from EU countries are exempt from corporate income tax as well as dividends paid to foreign shareholders (even offshore) of the Hungarian company.
Hungary has a Holding Regime. Participation exemption is applied to dividends received from subsidiaries if the following requirements meet:

  • Participation is at least 30%
  • Participation is held for at least 1 year
  • Participation is declared to Hungarian Tax authorities within 60 days of the acquisition
  • A subsidiary is not a controlled foreign corporation. Controlled Foreign Corporation is a company at least 10% held by Hungarian private resident.

The Key advantages are:

  • Fast incorporation process.
  • 0% Corporate Tax on incoming dividends received from EU or Treaty subsidiaries
  • 0% Withholding Tax on outgoing dividends distributed to an offshore company
  • 0% Capital Gains Tax on sell out of declared subsidiaries

 

Contact us for holding company package. Or ask for alternative application.


KFT AS ROYALTY COMPANY

Participation exemption is also available for Capital gains on intellectual property, given the following conditions meet:

  • Participation is at least 30%
  • Participation is held for at least 1 year
  • Participation is declared to Hangarian Tax authorities within 60 days of the aquisition

Key advantages are:

  • Fast incorporation process.
  • 10%/19% Standard Corporate tax applies to only 50% of royalty income. (10% on income less then 500 million Huf and 19% on the excess)
  • No Local Business Tax applies to Royalties
  • 0% Capital Gains tax on sale of IP, if Participation Exemption applies
  • 0% withholding tax on royalties paid to a legal entity including offshore. Or, 16% withholding tax on royalties paid to private person, which can be reduced under the tax treaty.

 

Contact us for royalty company package. Or ask for alternative application.

Hungary company Taxation

  • CORPORATE TAX. 10% on income less then 500 million Huf and 19% on the excess. LOCAL BUSINESS TAX can be levied by municipalities at maximum 2% on net revenue. A minimum tax can be levied as well if the Company does not meet 2% profit requirements.
  • INCOMING DIVIDENDS: 0% -. Participation Exemption applies to Holding and Royalty companies, if i)  Participation is at least 30%; ii) Participation is held for at least 1 year; iii) Participation is declared to Hungarian Tax authorities within 60 days
  • CAPITAL GAINS TAX (CGT) is at standard Corporate Tex rate 10% unless Participation Exemption applies.
  • WITHHOLDING TAX:
    ROYALTIES 0% paid to foreign companies.
    DIVIDENDS 0% paid to foreign companies.
    INTERESTS 0% paid to foreign companies.
  • BILATERAL TAX TREATIES with 69 countries including almost all CIS countries, Hong-Kong, Singapore, Malta.
  • VALUE ADDED TAX (VAT). EU VAT regime. The standard rate for inland sales is 27%.

How do I proceed with company registration in hungary?