Starting a business in
ðŸ‡ðŸ‡ºHungary
Checked November 4, 2026 · How we score
Corporate tax
9%
Top income tax
15%
Setup from
$1,500
all-in, first year
Time to form
7 days
can be done remotely
Taxes in Hungary
| Corporate income tax | 9% 9% corporate income tax, plus local business tax up to 2% of adjusted gross margin and a 0.3% innovation contribution. KIVA flat small-business regime (about 10%–11%) is optional. Pillar Two 15% applies to large groups. |
|---|---|
| Personal income tax (top) | 15% Flat 15% PIT. Employees pay 18.5% social contributions and employers 13% social contribution tax. Dividends: 15% PIT, plus a social contribution on part of dividends for individuals (health contribution up to a cap). |
| Tax system | Worldwide income |
| Capital gains tax | 15%15% on investment gains, plus a possible 13% social contribution up to a cap. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 27% |
| Social security | Employee 18.5%, employer 13%. No withholding tax on dividends paid to non-resident companies or individuals (subject to treaty/anti-abuse rules). |
Forming a company in Hungary
| Usual entity | Kft (limited liability company) |
|---|---|
| Minimum capital | $8,500 |
| Setup cost (all-in) | $1,500–$3,500 |
| Annual running cost | $1,800–$4,500 |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
White Card requires about EUR 3,000/month income and allows one year, renewable once. The Guest Investor programme was suspended in 2022. Non-EU founders typically need a work or business permit.
| Digital nomad visa | White Card, $3,450/month income |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
9% CIT
Lowest corporate tax in the EU, with an additional local business tax of up to 2%.
KIVA small-business tax
Optional flat tax on cash-flow basis for small companies (around 10%–11%), with no separate dividend tax on distributions.
R&D and development tax incentives
Super-deduction for R&D costs and development tax allowances for investment projects.
Pros and cons
Why founders pick Hungary
- 9% corporate tax
- 15% flat personal income tax
- No dividend withholding for non-residents
- Central European location and strong IT talent
Watch out for
- 27% VAT, the highest in the EU
- Local business tax up to 2% on gross margin
- HUF 3m (about USD 8,500) minimum capital for a Kft
- Strict anti-avoidance rules; EU funds disputes damage reputation
- Social contribution tax on dividends can add up to 13%
Best for: Small companies that can use KIVA · Service and software companies seeking low corporate tax · Companies serving Central European markets
Hungary: common questions
What is the corporate tax in Hungary?
9%, the lowest in the EU. Companies also pay local business tax of up to 2% of gross margin and a 0.3% innovation contribution, so the real burden is closer to 11%–12%.
Can a foreigner open a Kft in Hungary?
Yes. A lawyer countersigns the company documents, and non-residents can sign by power of attorney. You need a Hungarian registered office and HUF 3 million in share capital. The Company Court registers in about 5–10 days.
Is there withholding tax on dividends in Hungary?
No. Hungary does not withhold tax on dividends paid to non-resident companies or individuals, but the 9% corporate tax and the shareholder's home-country rules still apply.
Does Hungary have a digital nomad visa?
Yes, the White Card for remote workers earning about EUR 3,000 per month. It lasts one year and can be renewed once, and holders are not tax residents unless they spend 183 days there.
What is KIVA in Hungary?
KIVA is an optional small-business tax of around 10%–11% on the company's cash-flow-based tax base, replacing corporate tax and social contribution tax on salaries. It is available to companies with revenue and headcount limits.
Sources
- NAV – Hungarian Tax and Customs Administration
- Hungarian Company Information Service
- PwC Worldwide Tax Summaries – Hungary
Compare Hungary
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.