Doing business in Hungary
Have you been thinking about doing business in Europe for a long time, but you don’t know which EU country would be the best choice for you?
Before entering a foreign market and the European company formation, it is definitely worth considering the opportunities and conditions offered by each country. Based on these, there are several arguments as to why it is worth doing business in Hungary.
Doing business in Hungary is quite easy
The European Union provides a highly open environment for foreign investors, so EU member states, including Hungary, strongly encourage foreign investment and doing business in Hungary, as they provide many job opportunities and make a significant contribution to economic performance.
Due to this, a Hungarian company formation can take place in 1-2 days, in addition to the fact that the costs of company formation in Hungary are considered particularly low in the European Union.
Due to its central location, Hungary is an ideal place to enter the EU market, as in addition to being located in the heart of Europe, it has excellent infrastructure, excellent access to the single community market and outstanding business opportunities in both service and logistics and manufacturing. In addition, Hungary has a well-qualified workforce, as the proportion of people with higher education and foreign language speakers is increasing year by year. This aspect makes Hungary even more attractive if you plan starting a business in Hungary, as the employment of a workforce with ideal competence and high qualifications is an essential factor for achieving success.
Extremely low corporate tax and dividend tax
The rate of corporate tax payable on the income of a company is the lowest in Hungary in the European Union. The flat rate corporate tax rate is only 9% in Hungary. This is why Hungary can be ranked among the countries with the most competitive tax system. Thus, the uniquely low corporate tax in the EU is a very favourable option if you are thinking of doing a business in Hungary.
In addition, the personal income tax in Hungary is particularly low in the European Union, which, like the corporate tax, is also flat rate and only 15%.
Furthermore, the rate of dividend tax payable in Hungary is considered to be extremely low.
Available European funding sources
In addition, Hungary is committed to developing a strategy to support businesses and investors, so in addition to the favourable corporate tax, there are also a number of EU tender opportunities open to businesses, which can also be used to claim non-refundable and partially refundable cash grants, which can further facilitate successful operation. It is important to note here that in EU countries that have been members of the European Union for a long time (such as Germany), these funding sources are now available only to a much lesser extent and to a much narrower extent.
So Hungary can be a good choice in several ways if you are thinking of doing business in Hungary or doing business in Europe.