🇭🇺European Union memberLowest corporate tax rate in the EU
Setting up a Kft in Hungary — EU invoicing, 9% corporate tax
Hungary is the first choice for companies that want to stay within the EU while paying the lowest corporate tax rate. But it isn't the right country for every business. This page first shows you whether it fits — what's easy and what's hard — so you look at pricing only after you've decided.
Advisory pages usually only tell you the easy side. Knowing the hard side is the only way to get through your first year without surprises.
✓What is easy
Remote incorporation is truly remote
You don't need to travel to Hungary. Once you sign a power of attorney at a notary and obtain an apostille, the lawyer handles registration — the company is formed while you stay in Turkey.
The incorporation timeline is predictable
If your documents are complete, registration finishes within 5 business days. Unlike some countries, there's no surprise waiting period or quota system.
Low administrative burden on intra-EU sales
Once you have an EU VAT number, you invoice corporate EU customers under the reverse-charge mechanism — you don't calculate VAT, collect it, or track refunds.
The capital requirement is flexible
You don't have to pay in the entire 3,000,000-forint minimum capital at formation; the shareholders' resolution sets the payment schedule.
Same time zone, easy travel
There's only a one-hour time difference with Turkey, and the Istanbul–Budapest flight takes two hours. That's a real convenience whenever you need to visit a bank or lawyer in person.
!What is hard
Opening a bank account
Traditional Hungarian banks run detailed compliance checks on companies with foreign ownership. If your activity description is weak or you lack proof of customers, the application gets rejected — and a rejection makes a second attempt harder.
What we do: We prepare your activity file before you apply, choose the institution to match your profile, and refer you to an e-money institution when needed.
The requirement for local accounting
Filings are submitted in Hungarian through the local electronic system. Your accountant in Turkey can't handle this — working with a local accountant is effectively mandatory.
What we do: We appoint the local accountant, manage the document flow, and give you periodic reports in Turkish.
Monitoring the registered address
Your registered office is the official address for legal notices. An unmonitored address means missed notices and administrative penalties — the most costly kind of oversight.
What we do: Our address service includes mail monitoring and same-day scanning; notices reach you by email.
Reporting obligations on the Turkish side
Declaring profit distributions in Turkey and the controlled foreign company rules are the most commonly overlooked issues. Catching them later makes correction expensive.
What we do: We assess the Turkish side before you set up the structure and build your distribution plan around it.
Hungary or another country? Comparison table
The four countries we compare against Hungary most often. Click a column header to go to that country's page.
If you'll withdraw the profit, choose Hungary (9%); if you'll keep it in the company, choose Estonia (no tax on undistributed profit). The decision comes down to what you'll do with the profit, not the rates themselves.
Hungary or Bulgaria?
Both are in the EU with low tax rates. Bulgaria is slightly cheaper, but Hungary has stronger corporate perception and banking infrastructure.
Why not the United Kingdom?
The UK can be incorporated the same day, but it's outside the EU — your EU customers will see you as a third-country supplier, and the VAT treatment changes.
Incorporation process: 5 business days
The single most common reason the process drags on is documentation — a missing apostille, a name conflict, or an unaccepted proof of address.
StageWhat happensDuration
PreparationInitial consultation and document preparationWe finalize the business activity, ownership structure, and name preferences; collect passports and proof of address; and issue and apostille the power of attorney at a notary. This stage is not included in the registration timeline.2–3 days2–3 days
Day 1–2Articles of association and lawyer approvalThe Hungarian lawyer prepares and countersigns the documents; shareholder resolutions are drawn up.1–2 days1–2 days
Day 2–5Registration with the Court of RegistrationThe electronic registration application is filed; the company gets its registration number and tax number.3 days3 days
Day 5–10VAT registration and account openingVAT registration is completed and an EU VAT number is requested; the bank or payment institution application is filed.3–5 days3–5 days
OngoingAccounting and address handoverThe local accounting agreement is signed, the registered address is activated, and the initial filing calendar is set.OngoingOngoing
Documents needed
Passport copy
For all shareholders and the managing director; a legible color scan is sufficient.
Proof of address
A utility bill or residence document issued within the last 3 months.
Power of attorney + apostille
Issued at a notary, apostilled, and translated.
Company name and business activity
2–3 alternative company names along with the planned business activity.
Tax: 9% isn't the whole picture
The corporate tax rate really is the lowest in the EU. But to plan your cash flow correctly, you also need to understand the local business tax and the VAT regime.
ItemRate / thresholdNote
Corporate tax9%The lowest rate in the EU; calculated on taxable profit.
Local business tax≤ 2%Paid to the municipality on a turnover basis; the rate depends on local decision.
VAT (standard)27%Reverse charge applies to intra-EU B2B sales; generally out of scope for non-EU services.
Profit distributionCase by caseDetermined by the shareholder's country of residence and the applicable double tax treaty.
Minimum capitalHUF 3,000,000Not a tax; the payment schedule can be set by shareholder resolution.
Don't skip the Turkish side
Full taxpayers in Turkey are required to declare profit distributions received from a foreign company. Controlled foreign company rules can also tax that income in Turkey under certain conditions. This is something to review before you set up the structure.
This section will go live once you add your real customer reviews. The three cards below are placeholders showing what kind of review belongs here.
!Placeholder content — replace before publishing. The reviews and ratings below are examples and are not from real customers. Rating and review markup (AggregateRating / Review) can only be used for genuinely collected reviews; fabricated ratings incur a structured-data penalty. That's why there is currently no rating markup on this page.
Sample reviewDate coming
This space will hold a review from a customer who was undecided about which country to choose, explaining why they were guided toward Hungary and how long the incorporation took.
◌Customer name pendingIndustry · city
Sample reviewDate coming
This space will hold a review describing which part of the process exceeded expectations — for example, having the EU VAT number and invoicing setup explained clearly from the start.
◌Customer name pendingIndustry · city
Sample reviewDate coming
This space will hold a review that isn't a perfect score and also mentions a point that was difficult. A section made up of only five-star reviews doesn't convince readers.
◌Customer name pendingIndustry · city
Frequently asked questions about setting up a company in Hungary
27 questions on formation, documents, banking, tax, import, and residency. Pick a topic or search directly.
27 questions
Yes. Turkish citizens can set up a company in Hungary alone or with multiple partners. Most business activities don't require a Hungarian citizen shareholder. However, regulated sectors such as finance, healthcare, transportation, energy, and food may require additional permits or licenses.
The company type most preferred by foreign entrepreneurs is the Kft., a limited liability company. A Kft. can be used for e-commerce, import, export, software, consulting, manufacturing, and international service activities.
Yes. A Kft. can be established by a single individual or legal entity. The same person can be both the sole shareholder and the managing director. Ownership shares, signing authority, and the capital payment schedule are set out in the formation documents.
The statutory minimum capital for a Kft. is 3,000,000 Hungarian forints. Capital can be contributed in cash or in kind. The payment method and timeline are set out in the formation documents; paying in the full amount at formation is not mandatory.
The vast majority of foreign investors set up a Kft: it can be formed with a single shareholder, there's no residency requirement for shareholders, management is flexible, and the capital requirement is low. A Zrt suits larger structures planning share transfers, investment rounds, or corporate partnerships; its capital and governance requirements are heavier.
Voluntary liquidation can take several months depending on settling debts and closing the tax relationship. The three items that most often extend liquidation are unpaid capital commitments, an unclosed VAT registration, and missing periodic filings. That's why we also discuss the exit scenario at the formation stage.
When documents are prepared completely, company formation is generally targeted for completion within 5 business days. Bank account opening, activity permits, and additional identity checks are assessed separately from this timeline.
A significant part of the formation process can be handled through a power of attorney and remote identity verification methods. However, banks, payment institutions, or relevant authorities may require the managing director to appear in person, join a video call, or submit additional documents.
A standard formation requires the shareholders' and managing directors' passports, proof of residential address, birth details, alternative company name options, business activities, ownership ratios, and the capital plan. Depending on the file's structure, notarization, apostille, translation, source-of-funds, and business plan documents may also be requested.
Yes. Every Hungarian company must have a valid registered address capable of receiving official notices. Correspondence from the tax office, the company registry, banks, and other official bodies must be monitored regularly. If you have an address in Hungary you're entitled to use, you can register that instead.
Once company registration, the tax number, and any required activity registrations are complete, you can sign contracts, issue invoices, and purchase goods or services in the company's name. For regulated activities, the relevant licenses or permits must be obtained before trading begins.
Opening a bank account and adapting to local accounting requirements. Traditional Hungarian banks conduct detailed compliance checks on foreign-owned companies, and some require an in-person meeting. On the accounting side, filings must be submitted in Hungarian, so working with a local accountant is mandatory — your accountant in Turkey cannot handle this.
Once the company is registered, you can apply for a corporate account with banks or suitable financial institutions in Hungary. The bank may review the business activity, ownership structure, source of funds, target countries, and expected transaction volume. Company formation does not mean the bank account will be approved automatically.
Hungarian companies can apply to platforms such as Wise, Revolut, Stripe, and PayPal. Account approval is assessed based on the company's business activity, website, bank account, products or services, and ownership structure. Each platform applies its own KYC and eligibility policy.
The standard corporate tax rate in Hungary is 9%. This rate applies to taxable profit calculated under tax law, not to turnover. Local business tax, VAT, payroll charges, and other activity-related taxes must be assessed separately.
The standard VAT rate in Hungary is 27%; reduced rates may apply to certain goods and services. A community (EU) VAT number is used for certain transactions with businesses in other EU countries. The VAT treatment of a transaction depends on the type of goods or services, the customer, and the place of supply.
OSS is not a physical document — it's an electronic registration scheme that lets you declare VAT on certain cross-border consumer sales within the EU through a single system. Hungarian companies that meet the eligibility conditions can register for OSS through NAV (the Hungarian tax authority).
No. Corporate tax at 9% is the lowest in the EU, but you also need to factor in the local business tax paid to the municipality (up to 2%, on a turnover basis) and the 27% standard VAT rate. Because reverse charge applies to intra-EU B2B sales, it's mainly companies selling to end consumers within Hungary that actually face the 27% rate.
If you'll withdraw profit from the company, Hungary's 9% corporate tax is advantageous — in Estonia, tax arises the moment profit is distributed. If you'll keep the profit in the company and reinvest it, Estonia doesn't tax undistributed profit. So the decision comes down to what you'll do with the profit, not the rates themselves.
No. Filings are submitted in Hungarian through the local electronic system; working with an accountant who keeps records under Hungarian law is effectively mandatory. You send the documents, the local accountant handles bookkeeping and filing, and we provide coordination and Turkish-language reporting.
Yes. A Hungarian company can purchase products from Turkey and import them into Hungary or another EU country. Before importing, you should check the product's customs code, origin, technical compliance, labeling requirements, import permits, and tax treatment.
An EORI number identifies a company in EU customs transactions. An A.TR certificate shows the free-circulation status of certain products under the Turkey–EU Customs Union. A.TR is not a certificate of origin and does not automatically grant a tax exemption for all products.
Yes. A Hungarian company can sell through its own e-commerce site, Amazon, Etsy, eBay, and other online marketplaces. Storing products in a warehouse in another EU country may require additional VAT registration, packaging obligations, or local notifications in that country.
Yes. Once the company is registered, you can buy a new or used vehicle, or apply for short- or long-term rental, in the company's name. For leasing applications, newly formed companies may be asked for a higher down payment, collateral, a business plan, or a personal guarantee. Leasing approval depends on the finance provider's assessment.
The owner or managing director can live in Turkey and manage part of the operations remotely. However, if the company's effective management is carried out from Turkey, or it has employees or an office in Turkey and conducts its activities there, additional tax obligations may arise.
A full taxpayer in Turkey who receives a profit distribution from a foreign company is required to declare it in Turkey. Controlled foreign company rules can also lead to that income being taxed in Turkey under certain conditions. This assessment should be done before the structure is set up — fixing it afterward always costs more.
No. Being a company owner or managing director does not automatically grant a residence permit or unrestricted right to live in the Schengen area. Business owners who want to actually work or live in Hungary must separately apply for the appropriate residence category.
Hungary Company Formation 2026 — Kft Setup, 9% Tax, Easy and Hard Sides · Marcaworld
