🇭🇺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 the lowest corporate tax while staying inside the EU. Formation is completed without travelling to Hungary, the company gets an EU VAT number and your European clients see you as an intra-EU supplier. If you are not sure, use the short test below to see whether Hungary suits you.
Formation package from 1.650 €Company registration tax included · see the price breakdown ↓✓Without traveling to Hungary, through a power of attorney
✓EU VAT number and reverse charge
✓Registered address, accounting, and trademark under one team
Company type
Kft
Corporate tax
9%
VAT
27%
Registration
5 business days
Formation
Remote
Free · 5 questions · 1 minute
Is Hungary the right country for you?
Answer five questions to see your fit score, what will be easy or hard for you and the next step. If it is not a fit, we tell you which country is a better match.
Question 1 / 5
Where are most of your customers?
Who you invoice directly determines Hungary’s advantage.
No contact details needed
Your result will appear here
%Fit scoreHow well Hungary fits you based on your customers, activity, turnover and profit plan.
✓What will be easy and hard for youNot a generic list; only the advantages and watch-outs that apply to your profile.
→Next stepA quote if it fits, otherwise which country is a better match.
Hungary company formation price
Know what you will pay before you start. The formation package is a one-off fee; a registered office is a legal requirement, and you add other services as you need them.
Formation package · one-off
Kft company formation
1.650 €
✓Kft. formation and registration procedures
✓Local and EU VAT number
✓Company registration tax
✓Company documents in Hungarian and English
✓Preparation of bank introduction letters
✓Manager tax and social security number
1-year registered officeLegal requirement1.000 €
Mail scanning and forwardingLegal requirement0 €
Chamber of Commerce first year registrationLegal requirement0 €
Starting total2.650 €
The company registration tax is included in the package; you pay no separate official fee.
Frequently added services
Optional · add during formation or later
12-month accounting serviceAnnual accounting and filing support · better value than 6-month2.200 €yearly
Digital bank application supportRecommendedApplication documents and process tracking0 €one-off
VAT activation supportVAT process initiation based on activity250 €one-off
Additional partner operationsPer second and subsequent partner400 €yearly
From the second yearRegistered office + 12 months of accounting. The formation fee is not charged again.3.200 € / year
Hungary or another country? Comparison table
The four countries we compare Hungary with most often. Click a column header to go to that country’s page.
Scroll the table sideways →
🇭🇺HungaryKft🇪🇪EstoniaOÜ🇧🇬BulgariaEOOD🇬🇧UKLtd🇬🇪GeorgiaLLC
Corporate tax
9%
0% if not distributed
10%
19–25%
15% · 1% for small businesses
EU membership
Yes
Yes
Yes
None
None · free trade
Formation time
5 business days
1–5 business days
7–14 business days
Same day
5 business days
Remote formation
Possible
Possible
Possible
Possible
Possible
Bank account
Moderately difficult
Hard
Moderately difficult
Easy
Moderately difficult
Local accounting
Mandatory
Mandatory
Mandatory
Required
Mandatory
Best-fit profile
Sells to the EU, takes profits out
Keeps profits in the company
Cost-focused entry to the EU
Quick start, global image
Low tax, fast formation
Hungary or Estonia?
If you will take profits out, Hungary (9%); if you will keep them in the company, Estonia (no tax on undistributed profit). The decision comes from what you do with the profit, not from the rates.
Hungary or Bulgaria?
Both are in the EU with low rates. Bulgaria is slightly cheaper; Hungary has a stronger corporate image and banking infrastructure.
Why not the UK?
The UK forms a company the same day but is outside the EU; your EU client sees you as a third-country supplier and the VAT set-up 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.
Read the detailed guide →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 or another country — let's decide together
Tell us about your business, where your customers are, and what you'll do with the profit — we'll tell you, for free, which country and structure fits. It's a screening conversation, not a sales pitch.
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