In short
Most foreign founders use a Kft. (limited liability company) with HUF 3 million of capital (about €8,200). Registration is filed electronically by a Hungarian lawyer; with the statutory template deed it is decided within 1 business day and is duty-free, while a custom deed takes up to 15 business days. A foreign manager is allowed but needs a Hungarian delivery agent. The company's tax number is issued automatically. Corporate tax is 9%, plus local business tax up to 2% of adjusted turnover; small companies can choose the 10% KIVA instead. Hungary charges no withholding on dividends to foreign companies, but individuals pay 15% and the US–Hungary tax treaty ended from 2024. VAT is 27%. Annual reports and tax returns are due by 31 May.
Hungarian company: key facts
Last verified 28 September 2026| Usual company type | Kft. (limited liability company): HUF 3 million capital (about €8,200)# Source: Xpatloop: setting up a company in Hungary |
|---|---|
| Registration | Filed electronically by a Hungarian lawyer; 1 business day and no duty with the template deed, up to 15 business days with a custom deed# Source: Act V of 2006 on company registration · Zunapro: forming a Kft in Hungary · Economx: template company registration made free (2017) |
| Foreign managers | Allowed; a manager with no Hungarian address appoints a local delivery agent# Source: Xpatloop: setting up a company in Hungary |
| Corporate tax | 9% — the lowest in the EU; plus local business tax up to 2% of adjusted turnover# Source: PwC Hungary: Investing in Hungary 2026 |
| Small-business tax (KIVA) | 10% on a cash-flow base, replacing corporate tax and the 13% employer tax; open up to HUF 6 billion revenue from 2026# Source: Economx: KIVA small-business tax in 2026 |
| Dividend withholding | 0% to foreign companies; 15% to individuals (no treaty relief for Americans since 2024)# Source: PwC Tax Summaries: Hungary — withholding taxes · US Treasury: termination of the US–Hungary income tax treaty |
| US tax treaty | None — the US ended the treaty, with effect from 1 January 2024# Source: US Treasury: termination of the US–Hungary income tax treaty · KPMG: IRS Announcement 2024-5 on the end of the US–Hungary treaty |
| VAT | 27% (18%, 5% reduced); optional exemption up to HUF 20 million turnover in 2026# Source: PwC Hungary: Investing in Hungary 2026 · NAV: higher VAT exemption threshold for small businesses |
| Audit | Needed above HUF 600 million average revenue or 50 staff# Source: WTS Klient: statutory audit thresholds (Mar 2026) |
| Annual filings | Annual report, corporate tax and local business tax returns due 31 May# Source: Nemzeti Cégtár: 31 May filing deadline |
| Beneficial owners | Central register kept by the tax authority (NAV), fed by banks and service providers; owners of 25% or more# Source: Merkantil: beneficial owner register information |
| US–Hungary Social Security agreement | In force since 2016 — avoids paying into both systems# Source: SSA: US–Hungary Social Security agreement |
| US anti-deferral tax | GILTI renamed NCTI from 2026; Hungary's 9% is far below the 18.9% high-tax threshold# Source: Crowe: OBBBA changes to international tax (GILTI → NCTI) |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Hungarian company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits register a Hungarian company exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in Hungary | A company does not give you residence. Non-EU founders who want to live in Hungary need a permit such as the guest self-employment permit. |
|---|---|
| Tax treaty | The US ended its tax treaty with Hungary from 2024. Canada, the UK and Australia still have treaties, which can reduce the 15% tax on dividends to individuals. |
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't taxed this way. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
Hungarian Company Formation in Numbers
Why Hungary
Why Americans Register Companies in Hungary
Hungary's 9% corporate tax is less than half the rate in France, Germany or Belgium and about 12 points below the EU average. Registration is fully electronic through a lawyer, and the company receives its tax number automatically.
The trade-offs: VAT is 27% — the highest standard rate in the EU — invoices must be reported to the tax authority in real time, and US owners face US tax on low-taxed foreign profits.
Business Structures
Which Entity Type Is Right for You?
Limited Liability Company
Kft. — Korlátolt felelősségű társaság
The usual choice for founders and foreign investors. One member is enough, and the managing director can be a foreign national living abroad (with a Hungarian delivery agent).
- Min. capital
- HUF 3,000,000 (≈ €8,200)
- Management
- Managing director (any residence)
- Liability
- Limited to contributions
Private Company Limited by Shares
Zrt. — Zártkörűen működő részvénytársaság
For larger companies and outside investors.
- Min. capital
- HUF 5,000,000 (≈ €13,650)
Public Company Limited by Shares
Nyrt. — Nyilvánosan működő részvénytársaság
For companies listed on a stock exchange.
- Min. capital
- HUF 20,000,000 (≈ €54,600)
Bt., Kkt. & Sole Trader
Betéti társaság · Egyéni vállalkozó
Partnerships have no minimum capital but at least one partner with unlimited liability. A sole trader registers online with the tax authority — no lawyer needed — but needs a Hungarian residence permit that allows self-employment.
- Min. capital
- None
- Liability
- Unlimited (at least one partner)
Tax Environment
Hungary's 9% Corporate Tax — and the 27% VAT
Hungarian companies pay a flat 9% corporate tax, plus local business tax of up to 2% of adjusted turnover (not profit) and, for medium and large companies, a 0.3% innovation contribution. Small companies can instead choose KIVA — 10% on a cash-flow base that replaces both corporate tax and the 13% employer social tax.
The US terminated the 1979 income tax treaty; it stopped applying to withholding on payments from 1 January 2024 and to other taxes for periods from 2024. Hungary charges no withholding on dividends, interest or royalties paid to foreign companies under its own law, but US individuals receive dividends with 15% Hungarian tax and no treaty relief. The US–Hungary Social Security agreement (in force since 2016) still applies.
US citizens and Green Card holders are taxed on worldwide income. Owning a Hungarian company usually means Form 5471 and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI is renamed net CFC tested income (NCTI). Hungary's 9% is far below the 18.9% high-tax threshold, so profits of a Hungarian company owned by US individuals can be taxed in the US each year even if not paid out. Get US international tax advice before you incorporate.
Step-by-Step Process
How to Register a Company in Hungary
Company registration in Hungary must be filed electronically by a lawyer (or, for some documents, a notary). Using the statutory template deed makes registration faster and duty-free.
Engage a Hungarian lawyer Required
Legal representation is mandatory. The lawyer drafts and countersigns the documents and can also countersign your signature specimen.
Choose the name and seat Name & address
The name must include the legal form; foreign-language words and a foreign-language version are allowed. The registered seat can be owned, rented or provided by a seat-service company.
Sign the founding deed Documents
Use the template deed for a 1-day decision, or a custom deed (up to 15 business days). A manager without a Hungarian address appoints a Hungarian delivery agent.
Lawyer files with the Court of Registration 1–15 business days
Filing with the template deed is duty-free. The tax authority issues the company's tax number automatically during registration.
Pay in the capital and open a bank account Banking
Pay in the capital as the deed requires and open a business account — banks usually want to meet the manager in person.
Set up invoicing and local tax After registration
Register for local business tax with the municipality and connect your invoicing to the tax authority's real-time reporting system.
Want to run the company from Hungary? A company does not give you residence — see the guest self-employment permit on our Hungary page.
Costs & Fees
What Does It Cost to Register a Company in Hungary?
| Cost item | Notes | Amount |
|---|---|---|
| Registration duty | Kft. with the template deed (custom deeds pay a duty). | none |
| Share capital | Kft. minimum — stays in the company, not a fee. | HUF 3,000,000 (≈ €8,200) |
| Lawyer | Mandatory; market prices vary with the work involved. | varies |
| Registered seat service | If you have no office (market estimate). | about €100–800/yr |
| Accounting | Bookkeeping, tax returns and real-time invoice reporting (market estimate). | varies |
HUF converted at the ECB rate of 30 Sep 2026 (€1 = HUF 366.20). Source: Act V of 2006 on company registration · Economx: template registration free
Ongoing Obligations
Post-Registration Requirements
Annual report and tax returns
File the annual report electronically and the corporate tax and local business tax returns by 31 May for calendar-year companies. VAT returns are monthly, quarterly or annual depending on your VAT.
Real-time invoice reporting
All invoices — with no value threshold, including those to consumers — are reported to the tax authority (NAV Online Számla); invoicing software reports immediately.
Audit
Needed if average revenue over two years exceeds HUF 600 million or average headcount exceeds 50.
Beneficial owners
The central register is kept by the tax authority (NAV) and fed by banks and other service providers. Report changes in owners of 25% or more to your service provider within 5 working days.
Expert Notes
What Americans Should Know Before Registering in Hungary
The 9% rate and US tax
Hungary's 9% is below the 18.9% US high-tax threshold, so US owners can pay US tax on the profits each year under NCTI. Some owners elect to treat the Kft. as a pass-through for US tax — get US advice.
No treaty means no treaty relief
Since 2024 Americans cannot use treaty rates. Plan dividends, salary and interest with both a Hungarian and a US adviser.
You do not need a fiscal representative
A Hungarian Kft. is itself a Hungarian taxpayer. Fiscal representatives are only for foreign non-EU companies registering for Hungarian VAT directly.
VAT at 27%
Every company gets a VAT-registered tax number. Small businesses can opt for the exemption up to HUF 20 million turnover in 2026; above that, price your consumer sales with 27% in mind.
A company does not give you residence
To live in Hungary as a founder you need a permit — usually the guest self-employment permit (up to 3 years, with income or staffing tests). The guest investor route needs €250,000 in an approved fund and may close.
Registering a Hungarian company is right for you if…
- You want the EU's lowest corporate tax rate and can live with 27% VAT.
- You have US tax advice on NCTI and the end of the US–Hungary treaty.
- You will work with a Hungarian lawyer and accountant.
- You have a separate plan for residence if you will live in Hungary.
We work with Hungarian lawyers and accountants who form companies for non-EU founders. Directories like LocalVouch can help you find more.
FAQ
Frequently asked questions
What is the best company structure for Americans in Hungary?
Usually a Kft. (limited liability company) with HUF 3 million of capital (about €8,200). One member is enough, and the managing director can live abroad.
How long does it take to register a Kft.?
With the statutory template deed, the Court of Registration decides within 1 business day and there is no duty. A custom deed takes up to 15 business days.
What is Hungary's corporate tax rate?
9%, the lowest in the EU, plus local business tax of up to 2% of adjusted turnover. Small companies can choose KIVA at 10% instead.
Is there a US–Hungary tax treaty?
No. The US ended it, with effect from 1 January 2024. Dividends to US individuals bear 15% Hungarian tax with no treaty reduction.
Do I need a lawyer?
Yes. Company registration in Hungary must be filed electronically by a lawyer (or a notary for some documents).
Hungary
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