Planning A European Company Formation? Set Your Mind On Hungary

  • 23 Dec 2020 2:29 PM
Planning A European Company Formation? Set Your Mind On Hungary
If you want to set your foot in Europe and want to operate in the common market you should consider Hungary as a starting point, as the company income tax rate is the lowest in the European Union.

Why do we suggest you set your mind on company formation in Hungary?

Europe is a market of more than 450 million people which means that the European company formation can be a great advantage, and running a business in Hungary creates an entry to this significant and attractive common market. Hungary has been lucrative to foreign investors for more than two decades because the Hungarian industry is very open to foreign investment.

Due to its geographical position in the middle of Europe, Hungary is in an ideal location to do business. Besides this, the company formation in Hungary is easy as it takes only 1-2 days and you can arrange it from your home country electronically.

The company income tax has been lowered to 9%

The Hungarian government has put several efforts into making the tax system more efficient in the latest years. As a result of these measures, the company income tax rate has been lowered to 9% which now is the lowest in the whole European Union.

Also, the 15% flat personal income tax rate is really low. And what is more, the Hungarian government's purpose is to further lower the personal income tax to 10 per cent in the upcoming 1-2 years.

The company formation in Hungary is very easy, and taking the procedure, time and cost into consideration, it is fast and easy. EU VAT number registration and local VAT number registration is also a very fast process.

But there are several steps needed to carry out to set up your company including among others the registration process, the personal tax number and social security number registration, the bank account opening and the client gate registration.

“To do all of these can be pretty tiring if you aren't familiar with the exact steps of the procedures, or you want to carry out all alone”, told us the legal consultant of BusinessImmigration.hu.

We can also say that Hungary is attractive as it has an excellent infrastructure, industrial sites, offices and science parks and labour costs are relatively low. And of course Hungary is a very popular tourist destination as well.

So if you like culture, history, good food and the spa culture, you will love Hungary and also the fact, that its location in the middle of Europe makes it a comfortable hub for further travels in the region.

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