Go9 % corporate tax
The lowest regular CIT rate in the EU – flat, without progression tiers.
Company formation
Company Formation in Hungary
Hungary has the EU's lowest corporate tax at 9 % (since 2017) and a fast, fully electronic formation via a Hungarian lawyer. Note the local business tax of up to 2 % on revenue. Legal status: 2026, without guarantee.
CIT 9 % (EU minimum)Kft. from ~€7,500formation in a few days
Key figures
Hungary at a glance
9 %
Corporate tax (since 2017)
~7.500 €
Minimum capital Kft. (3 m HUF)
a few days
Electronic registration
2 %
Local business tax (max., on revenue)
Advantages
What speaks for Hungary
Fast e-formation
Fully electronic procedure via a Hungarian lawyer; the tax number is issued automatically.
Industrial hub
An established location for automotive, battery and electronics manufacturing with a strong supply chain.
Tax comparison
Example: €100,000 profit
| Germany | Hungary | |
|---|---|---|
| Corporate tax | ~30 % (effective) | 9 % (+ local business tax up to 2 % of revenue) |
| Tax on €100,000 profit | ~€30,000 | €9,000 (+ HIPA per municipality) |
| Special feature | Trade tax on profit | business tax (HIPA) on revenue |
The local business tax (HIPA, up to 2 %) is assessed on adjusted revenue, not profit – factor it in for low-margin models. Dividends to individuals: 15 % income tax.
Legal forms
Legal forms at a glance
| Legal form | Minimum capital | Liability | Typical use |
|---|---|---|---|
| Kft. (LLC) | 3 m HUF (~€7,500), not necessarily paid in immediately | limited | Standard SMEs |
| Zrt. (private joint-stock) | 5 m HUF | limited | Larger firms |
| Bt. (limited partnership) | none | partly unlimited | Small businesses |
| Branch | — | parent liable | Market entry |
The involvement (countersignature) of a Hungarian lawyer is legally required for formation.
Process
How incorporation works
Engage a lawyer
Formation documents are drafted and countersigned by the Hungarian lawyer.
E-registration
Electronic filing with the company court.
Tax number
Issued automatically with registration (NAV).
Business account
Open an account; provide capital per the articles.
HIPA registration
Register for local business tax with the municipality.
Usually a few working days in the simplified procedure.
Costs
Costs (indicative)
Lawyer ~€300–800; registration fees largely waived in the simplified procedure; ongoing accounting ~€150–300/month (indicative).
Taxes
Corporate taxes
| Item | Rate |
|---|---|
| Corporate tax | 9 % |
| Local business tax (HIPA) | up to 2 % (on adjusted revenue, per municipality) |
| Income tax on dividends | 15 % |
| VAT (ÁFA), standard rate | 27 % |
| KIVA (small-business tax, optional) | 10 % |
QDMTT (15 %) applies since 2024 only to groups from €750 m revenue. The 27 % standard ÁFA rate is the highest in the EU.
Knowledge check
Worth remembering
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CIT in Hungary?
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9 % – EU minimum, flat since 2017.
Minimum capital Kft.?
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3 m HUF (~€7,500), not necessarily paid in immediately.
What to watch?
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Local business tax (HIPA) up to 2 % on revenue.
Location in numbers
Hungary in numbers
| Metric | Value |
|---|---|
| Corporate tax | 9 % – lowest rate in the EU (since 2017) |
| Population | ~9.6 m |
| Standard VAT rate | 27 % (highest in the EU) |
| Focus sectors | automotive, battery, electronics, shared services |
Latest developments
Latest developments (as of July 2026)
- CIT stable at 9 %; QDMTT (15 %) since 2024 only for large groups.
- Massive investment in battery and automotive plants (incl. Debrecen).
- KIVA remains attractive as an optional regime for small businesses.
FAQ
Frequently asked questions about Hungary
How high is the corporate tax?
9 % – plus local business tax (up to 2 % of revenue).
How fast is formation?
Usually a few working days in the electronic procedure.
Do I need a lawyer?
Yes, countersignature by a Hungarian lawyer is mandatory.
How are dividends taxed?
At 15 % income tax for individuals.
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Sources & disclaimer
Sources
This page is for general information only and does not replace legal or tax advice. Binding information is provided by the competent authorities of the respective country and by lawyers, notaries and tax advisors licensed there. For the tax consequences of relocating from Germany or Austria, tax advisors licensed in those countries are responsible. All information without guarantee. Status: July 2026. For an individual assessment: contact@goglobal.associates.
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