Hungary
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Hungary.
Foreign Ownership Eligibility
Hungary welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted
- 1 director minimum, no residency requirement
- Minimum capital: HUF 3,000,000 (~EUR 8,230 / ~USD 9,000)
- Kft. recommended for foreign SMEs (2-hour electronic formation)
- No restrictions on foreign shareholders
Ownership
100% Foreign OK
Formation
100% Remote
Tax at a glance
Hungary Tax Overview
9%
Corporate Income Tax (CIT)
27%
VAT (standard)
18%
VAT (reduced)
5%
VAT (super-reduced)
Up to 2%
Local Business Tax (LBT)
13%
Social Tax (employer)
18.5%
Social Tax (employee)
80+
Tax treaties
Pros & cons
Advantages & Considerations
Key Advantages
9% CIT — LOWEST corporate tax rate in EU (most competitive)
2-hour electronic Kft. formation — fastest in Europe
Strategic Central European location — borders 7 countries, access to 450M+ EU consumers
Full EU market access since 2004 — Single Market, free movement
Skilled workforce — strong technical education, multilingual (Hungarian, English, German)
Manufacturing hub — automotive (Mercedes, BMW, Audi plants), electronics, machinery
R&D incentives — tax breaks for research and development
0% WHT on dividends/interest/royalties to foreign entities
Low operating costs — competitive labor/office costs vs Western Europe
80+ tax treaties — reduced WHT, treaty access
Considerations
Political uncertainty — regulatory changes, EU rule-of-law concerns, unpredictable policy shifts
27% VAT — one of the highest in EU
Language barrier — Hungarian is non-Indo-European, challenging for foreigners
Bureaucracy — administrative processes can be slow, government inefficiency
Limited international perception — not as recognized as Western European jurisdictions
Banking challenges — in-person visit often required for foreign directors
Brain drain — skilled workers emigrate to Western Europe for higher salaries
Currency risk — HUF volatile, not part of Eurozone
Compliance complexity — transfer pricing docs, frequent tax law changes, complex LBT rules
Limited startup ecosystem — smaller tech/VC scene vs Western Europe
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Name reservation
Open temporary bank account
Draft Articles of Association
Notarize documents (if required)
Register with Trade Register
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Total formation: HUF 3,180,000–3,450,000 (~EUR 8,723–9,467 / ~USD 9,540–10,350) including minimum capital. Add HUF 500K–1.5M/year for annual accounting/compliance.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Hungary setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Hungary. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| OTP Bank (largest) | Traditional bank | Low (Visit Required) | 2–4 weeks (in-person visit often required for foreign directors/shareholders) • EUR 10–50/month • EUR 0–1,000 (varies by bank; many have no minimum) • Certificate of Incorporation, Articles, Trade Register extract, Tax Registration (NAV), passport/ID of directors/beneficial owners, proof of address, business plan • All major banks offer online/mobile banking |
| Erste Bank Hungary | Traditional bank | Low (Visit Required) | 2–4 weeks (in-person visit often required for foreign directors/shareholders) • EUR 10–50/month • EUR 0–1,000 (varies by bank; many have no minimum) • Certificate of Incorporation, Articles, Trade Register extract, Tax Registration (NAV), passport/ID of directors/beneficial owners, proof of address, business plan • All major banks offer online/mobile banking |
| Raiffeisen Bank Hungary | Traditional bank | Low (Visit Required) | 2–4 weeks (in-person visit often required for foreign directors/shareholders) • EUR 10–50/month • EUR 0–1,000 (varies by bank; many have no minimum) • Certificate of Incorporation, Articles, Trade Register extract, Tax Registration (NAV), passport/ID of directors/beneficial owners, proof of address, business plan • All major banks offer online/mobile banking |
| UniCredit Bank Hungary | Traditional bank | Low (Visit Required) | 2–4 weeks (in-person visit often required for foreign directors/shareholders) • EUR 10–50/month • EUR 0–1,000 (varies by bank; many have no minimum) • Certificate of Incorporation, Articles, Trade Register extract, Tax Registration (NAV), passport/ID of directors/beneficial owners, proof of address, business plan • All major banks offer online/mobile banking |
| K&H Bank | Traditional bank | Low (Visit Required) | 2–4 weeks (in-person visit often required for foreign directors/shareholders) • EUR 10–50/month • EUR 0–1,000 (varies by bank; many have no minimum) • Certificate of Incorporation, Articles, Trade Register extract, Tax Registration (NAV), passport/ID of directors/beneficial owners, proof of address, business plan • All major banks offer online/mobile banking |
| Revolut Business | Fintech | High (Remote) | 2–4 weeks (in-person visit often required for foreign directors/shareholders) • EUR 10–50/month • EUR 0–1,000 (varies by bank; many have no minimum) • Certificate of Incorporation, Articles, Trade Register extract, Tax Registration (NAV), passport/ID of directors/beneficial owners, proof of address, business plan • All major banks offer online/mobile banking |
| Wise Business | Fintech | High (Remote) | 2–4 weeks (in-person visit often required for foreign directors/shareholders) • EUR 10–50/month • EUR 0–1,000 (varies by bank; many have no minimum) • Certificate of Incorporation, Articles, Trade Register extract, Tax Registration (NAV), passport/ID of directors/beneficial owners, proof of address, business plan • All major banks offer online/mobile banking |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Corporate tax return filing | Ongoing | Due 31 May (for calendar year taxpayer). Must be filed by last day of 5th month after year-end. |
Corporate tax payment | Ongoing | Final payment due 31 May. Quarterly or monthly advance payments required throughout year. |
Annual financial statements | Ongoing | Prepare within 150 days of year-end. Must be audited if thresholds met. |
Annual General Meeting | Ongoing | Within 5 months of year-end. Must approve financial statements. |
Local Business Tax (LBT) return | Ongoing | Varies by municipality. Filed with local tax office. |
VAT returns | Ongoing | Monthly (if registered). Due by 20th of month following reporting period. |
Transfer pricing documentation | Ongoing | Required for related-party transactions > HUF 100 million. Due by CIT return deadline. |
Statutory audit | Ongoing | Not required for Kft. unless 2 of 3 thresholds met: assets > EUR 4M, revenue > EUR 8M, employees > 50. Zrt. always requires audit. |
Frequently Asked
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