View Services  

Business in Hungary


The setup of a new company in Hungary is a simple process once all the necessary information and documents are available. The registration requests the assistance of a lawyer, and it is good to consult with the chosen accountant as well before signing the corporate documents. The registration of a company usually takes 2 weeks.

The most common legal entities that can be formed in Hungary are Limited Liability Company (KFT) and Private Joint Stock Company (ZRT). Hungarian companies have to have at least one local bank account. They can have bank accounts abroad as well, but they have to be reported to the tax authority.

Companies can have one or more owners. Owners can be private persons and companies as well.


Taxes in Hungary are levied by both national and local governments. The Hungarian corporate income tax rate is 9%, which is the lowest in the European Union, while the local business tax is between 0% and 2% on the gross profit. Taxpayers with Hungarian residence have to pay corporate tax on their worldwide income (unlimited tax liability), while non-resident businesses only need to pay tax on the income from their Hungarian activities (limited tax liability).

Stardanrd VAT rate in Hungary is 27%. Reduced rate of 18% is for certain food products and hotel accomodation. Reduced rate of 5% is for other food products, medicine, books, periodicals etc.


The Hungarian Labour Code defines the rules of employment, and it applies generally for every employee regardless of their nationality.

Expats are liable to pay resident taxes in Hungary if they stay in the country for at least 183 consecutive days over 12 months period.

If the employment contract is terminated, the notice period is in general one month.


Employees from the EU are able to work in Hungary without any limitations. Local registered address is not necessary to get a tax ID and social insurance ID. However EU citizens staying in Hungary for more than 3 months have to register at the Immigration Office.

Employees from outside the EU have to get a work permit first, and it has several conditions. The proper work permit is a condition to get social insurance ID, which is a compulsory element of the employee registration form. An exception to this rule is the foreign manager of a branch office, he does not need a work permit to be registered as a Branch Office Manager.


Email again: