9% corporate tax — the lowest in the EU. Book an introduction
Home / Countries / Hungary
Hungary · EU jurisdiction

Hungary.
9% corporate tax, inside the EU.

A Hungarian Kft. carries the EU's lowest corporate income tax rate — a flat 9%, with no thresholds and no phase-outs. Paired with an IP Box regime at 4.5% and a full dividend participation exemption, it's the sharpest legitimate tax structure in the union. Your global attaché coordinates formation, banking, accountants and counsel under one engagement.

Entity
Kft.
Formation
1–2 weeks
Corp tax
9% flat
IP Box
4.5%
Currency
HUF
EU access
Full
Inside your Hungary market entry

Every part of a Hungary market entry.

Below is what a LeapGroup Hungary market entry includes — coordinated by Noah, delivered by specialists we've worked with directly.

01

Kft. formation & company court filing

Court of registration filing (Cégbíróság), share capital deposit, tax number issuance (NAV), VAT registration where needed, and Budapest registered office.

02

Hungarian accounting & tax

Monthly Hungarian bookkeeping in HUF, VAT (ÁFA) returns, KATA/company tax filings, corporate income tax, local business tax (HIPA) and annual reports.

03

Hungarian & CEE marketing

Budapest-based marketers for Hungarian-language SEO, local paid media, PR into Portfolio/HVG, and expansion into wider CEE markets (SK, RO, HR).

04

Holding & IP Box structuring

Advisory on Kft. holding structures, participation exemption planning, IP Box qualification (4.5% on qualifying royalty income), and cross-border interaction with parent jurisdictions.

05

Hungarian counsel & contracts

Local corporate lawyers for Kft. formation documents, shareholder agreements, employment contracts, commercial contracts, and MNB regulatory review for financial services.

06

Hungarian payroll & hiring

Local payroll, NAV registration, employment contracts under the Hungarian Labour Code, KIVA regime advisory where applicable, and PEO/EOR services.

Why Hungary

The cleanest tax play inside the EU.

If you need EU standing and want the lowest legitimate corporate tax the union has to offer, Hungary is the answer — often paired with a Dutch or German holding above.

9% CIT — flat, no thresholds, no phase-outs

The lowest headline corporate tax rate in the entire European Union, applied uniformly to profits with no small-business or large-business banding.

IP Box at 4.5% for qualifying IP income

Income from royalties on qualifying IP can be taxed effectively at 4.5% via a 50% base deduction. A meaningful lever for software and licensing businesses.

Full participation exemption on dividends

Dividends received from qualifying subsidiaries are exempt from CIT. Combined with the 9% rate, Hungary is a powerful holding jurisdiction.

Full EU single-market access

Free movement of goods, capital and services across the EU. Full VAT membership. No Brexit complications for goods flow.

85+ tax treaties

A broad treaty network, including favourable terms for outbound royalties and dividends — supporting Hungary's role as a European holding jurisdiction.

Lower operating cost than Western EU

Accountancy, legal, office rent and salaries are all materially lower than Amsterdam, Dublin or Frankfurt — with fully EU-standard quality.

NR
Available this week
Noah Rasmussen
Partner in LeapGroup · Global attaché

Meet your global attaché.

Noah is the single point of contact for every LeapGroup engagement — including yours in Hungary. He takes your brief, shortlists two or three specialists from our Budapest network (Hungarian tax counsel, IP Box specialists, banking), joins the first call, and stays on point throughout.

Fifteen years placing founders across our nine jurisdictions. Straight-talking, personally accountable, on the first call.

Send Noah a private brief →
Honest advisory

When Hungary fits — and when it doesn't.

Not every founder benefits from a Kft. Here's how we think about it on the first call.

Hungary is a strong fit if you...

  • Are structuring an EU holding company for tax efficiency
  • Have IP that could qualify for the IP Box (software, patents, trademarks)
  • Run a high-margin services business and want to keep more of each euro
  • Need genuine EU standing (VAT, single market, treaty coverage)
  • Are comfortable with substance requirements (local director, local bookkeeping)

Look elsewhere if you...

  • Want the absolute fastest formation (UK is 24–48 hours)
  • Prefer a jurisdiction where courts and admin operate in English
  • Have minimal profit — the 9% saving doesn't offset compliance cost
  • Need a directly recognised brand jurisdiction for US/UK investors
Hungary-specific FAQ

What founders ask us about Hungary.

9% is the corporate income tax rate. There's also a Local Business Tax (HIPA) of up to 2% on gross margin in most municipalities, and a modest innovation contribution. Total effective burden usually lands at 11–12% — still the lowest in the EU by a wide margin.
No. There's no residency requirement for directors or shareholders of a Kft. That said, substance matters — the tax authority increasingly scrutinises whether the company has real management activity in Hungary. István will advise on what the right level of substance looks like for your structure.
Qualifying royalty income (from self-developed IP or acquired IP within limits) benefits from a 50% base reduction, taking the effective rate to 4.5%. Requires proper R&D substance and documentation. We tell you upfront whether your business qualifies.
Registered address: €600–1,000/year. Monthly Hungarian bookkeeping: from €200/month. Annual accounts and tax returns: €1,000–2,000/year. Formation itself: €1,500–2,500 one-off. Exact figures quoted in writing after the first call.
Yes — this is one of the most common structures for cross-border operators. The Hungarian Kft. runs the operating activity at 9%, dividends flow up to the Dutch B.V. under the participation exemption. We coordinate with our Amsterdam attaché to make it clean.

Ready to enter Hungary?

Send a private brief. Noah will reply within one business day with a proposal covering your Hungary market entry and a shortlist of the specialists worth your time.