Hungary
 

General Information

    Advantages:

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• the immediate international VAT number 

• cost-effective setup and maintenance of the company 

• good infrastructure 

• a wide network of treaties for the avoidance of double taxation

    Disadvantages:

• a municipal tax (0% to 2% on profit)

• high level of VAT – 27%

• high level of social contributions to employees (23%)

• the company’s initial capital must be paid up 

Hungary is a European country located in the middle of the continent and boarded with 7 countries.

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Hungary has a more than 80% privately owned economy, which provides the basis for the country's welfare economy. On the expenditure side, household consumption is the main component of GDP and accounts for 50 percent of its total use, followed by gross fixed capital formation with 22 percent and government expenditure with 20 percent. Hungary continues to be one of the leading nations for attracting foreign direct investment in Central and Eastern Europe, the inward FDI in the country was $119.8 billion in 2015, while Hungary invests more than $50 billion abroad. 

Hungary joined the European Union in 2004 and has been part of the Schengen Area since 2007. It is a member of numerous international organizations, including the United Nations, NATO, WTO, World Bank, IIB, the AIIB, the Council of Europe, and the Visegrád Group. 

Legal Information

Tax Information