Starting a business in Hungary as a foreigner

Hungary has become an attractive destination for foreign entrepreneurs looking to start a business in Europe. With a business-friendly tax system, efficient public administration, and a vibrant expat community, Hungary offers excellent opportunities for those looking to enter the European market. Here’s what you need to know about starting a business in Hungary as a foreigner.

No real language barrier

One of the first concerns foreign business owners have when setting up in a new country is the language barrier. Fortunately, this is not a major issue in Hungary, especially in Budapest and other major cities. Most young professionals, government officials, and service providers speak English fluently, making it easy to navigate administrative processes, hire employees, and conduct business. Even legal and financial services often provide English-speaking assistance, ensuring smooth operations for foreign entrepreneurs.

Business-friendly tax environment

Hungary offers one of the most favorable tax systems in Europe, making it an attractive destination for businesses. The corporate tax in Hungary is only 9%, the lowest in the European Union, which significantly reduces the tax burden on companies compared to other European countries.

Additionally, the personal income tax in Hungary is flat 15%, making it a favorable location for entrepreneurs who want to keep more of their earnings. This friendly tax environment makes Hungary an ideal place to establish a business, particularly for startups and small-to-medium-sized enterprises.

Fast and efficient company formation

One of the biggest advantages of setting up a business in Hungary is the fast and efficient company registration process. Unlike in many other European countries where company formation can take weeks or even months, in Hungary, the process is remarkably quick. In most cases, you can register a business in Hungary just a couple of days.

The Hungarian public administration system is well-organized, and thanks to digitalization, many procedures can be done online.

The key steps for company formation in Hungary include:

Choosing a business structure – The most common type is the Kft. (Limited Liability Company).
Registering with the authorities – You have to sign the documents personally before submitting them to the authorities. If you choose remote company formation in Hungary, you can also sign the documents during an online meeting.
Opening a bank account – A business bank account opening in Hungary for your company’s financial transactions.
Registering for VAT (if applicable) – If you would like your company to be subject to VAT, the EU VAT number registration and the VAT number registration in Hungary will be organized during the formation.

With professional assistance, all these steps can be completed swiftly, allowing you to start operating in no time.

A thriving expat community in Budapest

Another great advantage of starting a business in Hungary as a foreigner is the large expat community in Budapest. The capital is home to thousands of international professionals, entrepreneurs, and digital nomads who have chosen Hungary as their base.

This vibrant community makes it easier for newcomers to adapt to life in Budapest. There are numerous networking events, business meetups, and co-working spaces where entrepreneurs can connect, share ideas, and find potential business partners. Whether you’re looking for legal advice, investment opportunities, or simply social support, the expat community in Budapest is welcoming and supportive.

Hungary is an excellent choice for foreign entrepreneurs looking to establish a business in Europe. With its low taxes, fast company formation, minimal language barriers, and strong expat community, it offers an ideal environment for growth and success. Whether you are launching a startup, setting up a subsidiary in Hungary, or expanding your existing business, Hungary provides a stable and business-friendly atmosphere to help you thrive.

If you’re considering starting a company in Hungary, now is a great time to take advantage of its numerous benefits and begin your entrepreneurial journey in one of Europe’s most dynamic business hubs.

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Starting a business in Hungary as a foreigner

Discover why Hungary is an ideal destination for foreign entrepreneurs

Starting a business in Hungary as a foreigner

Discover why Hungary is an ideal destination for foreign entrepreneurs