Starting a Business in Hungary: A Smart Choice for Entrepreneurs

Hungary has quietly become one of Europe’s most attractive destinations for startups, entrepreneurs, and international investors. With its liberal company law, favourable tax regime, and strategic location in the heart of Europe, Hungary offers an ideal environment for launching and growing a business.

Here’s why Hungary should be at the top of your list when considering where to start your next venture:

A Business-Friendly Legal Framework

Hungary’s company law is known for its flexibility and simplicity. Whether you’re a solo entrepreneur or an international investor, the Hungarian legal system allows you to set up a company quickly and with minimal bureaucracy.

Key advantages:

• Fast company formation: A limited liability company (Kft.) can be established within 1-2 business days after submitting the necessary documents.
• Low share capital requirements: The minimum share capital for a Kft. is only HUF 3,000,000 (approx. EUR 7,500), and it does not need to be fully paid up at the time of registration.
• 100% foreign ownership is allowed – there are no restrictions for non-residents.
• No local director requirement – a company can be managed by foreign nationals without any residency obligation.
• Online procedures: Many company-related filings can be done electronically, making administration smooth and efficient.

Tax Advantages That Make a Difference

Hungary offers one of the most competitive corporate tax regimes in Europe:

• Corporate income tax: A flat rate of 9%, the lowest in the European Union.
• Personal income tax: A flat rate of 15%, providing an attractive option for business owners and employees alike.
• Dividend taxation: Dividends are taxed at 15%, but certain double taxation treaties may reduce this further.
• No withholding tax on outbound dividends, interest, and royalties paid to non-residents.

In addition, Hungary offers a variety of tax incentives for research and development, innovation, and investments in certain sectors, such as technology, manufacturing, and renewable energy.

Hungary’s Strategic Location in Europe

Hungary is perfectly positioned in the heart of Europe, making it a natural hub for trade, logistics, and business development.

Key benefits:

• EU Member State: Hungary is part of the EU single market, providing easy access to over 450 million consumers.
• Excellent infrastructure: Well-developed road, rail, and air transport links to major European capitals.
• Competitive labour market: A highly skilled workforce with strong expertise in sectors such as IT, engineering, and finance.
• Affordable costs: Lower operational costs compared to Western Europe, including office space, salaries, and services.

Why Hungary is a Startup Hotspot

In recent years, Hungary has emerged as a vibrant startup ecosystem, with Budapest often dubbed the “Silicon Valley of Central Europe.”

• A growing number of tech hubs, accelerators, and incubators.
• Access to EU funding programs and local government grants.
• A collaborative community of entrepreneurs, investors, and professionals.

Ready to Start Your Business in Hungary?

At our firm, we provide tailored legal and strategic advice for clients looking to establish a business in Hungary. We handle every step of the process, from company formation to tax registration, compliance, and beyond.

Let us help you turn your ideas into reality and make Hungary the foundation of your success.

Contact us today for an initial consultation!