GSL / Offshore and International Law / Offshore zones / Eastern Europe / Hungary / Legislation of Hungary

Legislation of Hungary

Service packages Legislation Tax System

List of laws and regulations

Your Consultant
Поиск консультанта...

Поиск консультанта...

Tax treaties entered

Albania
Armenia
Australia
Austria
Azerbaijan
Bahrain
Belarus
Belgium
Bosnia and Herzegovina
Brazil
Bulgaria
Canada
China
Chinese Taipei
Croatia
Cyprus
Czech Republic
Denmark
Egypt
Estonia
Finland
Former Yugoslav Republic of Macedonia
France
Georgia
Germany
Greece
Hong Kong (China)
Iceland
India
Indonesia
Iran
Iraq
Ireland
Israel
Italy
Japan
Kazakhstan
Korea (Republic of)
Kosovo
Kuwait
Latvia
Liechtenstein
Lithuania
Luxembourg
Malaysia
Malta
Mexico
Moldova (Republic of)
Mongolia
Montenegro
Morocco
Netherlands
Norway
Oman
Pakistan
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
San Marino
Saudi Arabia
Serbia
Singapore
Slovakia
Slovenia
South Africa
Spain
Sweden
Switzerland
Thailand
Tunisia
Turkey
Turkmenistan
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Vietnam.

Tax Exchange Information Agreement (TEIA)

Jersy
Guernsey.

List of state regulatory authorities

Governmental Portal
Hungarian Government
National Tax and Customs Administration
Hungarian Intellectual Property Office
Hungarian Trade Licensing Office
Hungarian Investment Promoyione Agency
National Bank of Hungary

Corporate info

Legal system
civil law
Types of entity
sole trader; unlimited partnership (Kkt.); limited partnership (Bt.); limited liability company (Kft.); company limited by shares (Rt.); association (egyesülés)
Shelf companies permitted
No
Incorporation timescale for a new company
2 days
Company suffix
Kft
Sensitive words
‘Hungarian’, ‘Budapest’ ‘national’, ‘state’, etc.
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
Yes
Information to be kept at the registered office
register of shares, minutes of meetings and accounts
Seal required, type of seal
not required
Redomiciliation (to, from) permitted
permitted

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
Yes
Directors’ meetings/frequency/location
Yes / annually
Disclosure to local agent
Yes
Disclosure to public
Yes
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
Yes / annually / no requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Beneficiary info disclosure to
No

Shares and share capital

Minimum authorized share capital
3000000
Minimum issued share capital
No requirements
Minimum paid share capital
3000000
Authorized capital payment deadlines
50% - before incoporation, 50% - within a year after incoporation
Issued capital payment deadlines
No requirements
Standard currency
Forint
Standard authorized share capital
3000000
Standard par value of shares
1000
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
15%
Min. rate for corporate tax
9% + 2%
Corporate tax (in detail)
Corporate tax rate is 9%
Capital gains tax
Regular rate
Capital gains tax. Details
VAT
27%
VAT. Details
Withholding tax
0%/0%/0%
Other taxes
transfer tax, social tax
Exchange control
No
Government fee
Stamp duty
No

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
Yes
Requirement to file Annual Return
Yes
Publicly accessible Annual Return
No
Audit required
No

General information shortly

Location
Central Europe
Total area
93.030 sq. km
Population
9.769.526 (2020)
Capital
Budapest
National currency
Forint
Conditional reduction of currency
HUF
Against USD
366,87 (2022)
Climate, average max and min t°
Temperate; cold, cloudy, humid winters; warm summers; avg. maximum temperature (July) +25°; avg. minimum temperature (January) +4°
Time difference from Moscow
- 1 hour
Dialing code
+36
State language
Hungarian
Ethnic groups
Hungarian 92.3%, Roma 1.9%, other or unknown 5.8%
Literacy rate
99% (2019)
History
The year 1000 saw the growth of the Hungarian Kingdom with the annexation of the territories of Slovakia, Syrmia, Croatia, and Transylvania. In the 12th century the Byzantine Empire conquered a few Balkan territories. At the same time Hungary came under the pressure from the Crusades. In the 13th century the country suffered the Mongolian invasion, and between 1526 and 1699 – the Turkish Yoke, which led to the division of the territories into the Austrian and Turkish parts. In 1687 Austria forced the Turks out of Hungary. The authority of the Habsburg Family was officially recognized and they reigned until 1867. The year 1848 witnessed the Hungarian Revolution for the liberation from the Habsburgs. In 1867 Austria-Hungary was founded. In March 1919 Hungary declared itself a Hungarian Soviet Republic, which only existed until August. Then the country was proclaimed a kingdom led by the regent Miklos Horthy (1920 – 1944). During the Second World War Hungary fought on the side of the Third Reich. The Red Army overthrew the military dictatorship of Szalasi (1944 – 1945) and set in the country a communist government which was in power until 1989. Later Hungary became a parliamentary republic. In 1999 Hungary became a member of NATO, and in 2004 it joined the EU.
Credit rating
BBB
Government type
Parliamentary democracy
Executive branch
Head of the government: Prime Minister Government: Cabinet of Ministers
Legislative branch
unicameral National Assembly (386 members)
Judicial branch
Constitutional Court, Supreme Court, courts of appeal, courts of first instance, and local courts
Unemployment
4,1% (2020)
GDP per capita rank
46 (2020)
Corruption perceptions index rank
43 (2021)

Need a consultation from a specialist?
Share on social media:

Banks of Hungary

Bank
The cost of opening an account, $
Global rating
Countrywide rating
GSL rating
3 030
N/A
N/A
3 030
N/A
N/A
RU EN