Company Formation in Hungary: Complete Guide for Non-Residents 2026
Company Formation Hungary: 9% Corporate Tax, EU Market, 100% Foreign Ownership
Hungary offers the lowest corporate tax rate in the European Union at just 9% — and it is fully accessible to non-residents. A foreign entrepreneur can own 100% of a Hungarian company, direct it from abroad and never relocate to Hungary. The process is entirely remote, handled through a local Hungarian attorney acting under power of attorney.
From our Geneva base, Swiss Global Corporate Services guides non-residents through company formation in Hungary — from incorporation to bank account opening.
At a glance: company formation in Hungary for non-residents
| Corporate tax rate | 9% — lowest in the EU |
| Main legal form | Kft (Korlátolt Felelősségű Társaság) — LLC equivalent |
| Minimum share capital | HUF 3,000,000 (~€7,500) |
| Foreign ownership | 100% permitted |
| Resident director required | No |
| Delivery agent required | Yes — for non-resident members and executives |
| Setup timeline | 5 to 10 working days |
| EU market access | Yes — 450 million consumers |
| No withholding tax | On dividends, interest and royalties to non-individuals |
| Our base | Geneva, Switzerland — 20+ years experience |
| Languages | English, French, Spanish |
Why Hungary for company formation in 2026
Hungary consistently stands out as one of Europe’s most competitive business destinations for international entrepreneurs. Here is what non-residents actually gain:
9% corporate tax — the lowest in the EU. Hungary’s flat 9% corporate income tax rate is the most competitive in the European Union. This is not a temporary incentive or a special regime — it is the standard rate applicable to all companies operating in Hungary.
No withholding tax on dividends, interest and royalties. When dividends, interest or royalties are paid to non-individual beneficiaries — such as a holding company — no withholding tax applies. This makes Hungary exceptionally attractive for holding structures and group financing arrangements.
Full EU market access. Hungary’s EU membership gives your company direct access to the EU single market — 450 million consumers, free movement of goods and services, and EU procurement opportunities.
Strategic location in Central Europe. Hungary sits at the crossroads of Eastern and Western Europe, with excellent transport links to both EU and non-EU markets. Budapest is a regional hub for finance, technology and manufacturing.
100% foreign ownership. There is no requirement for a Hungarian co-founder, local partner or resident director. A non-resident can own and control a Hungarian Kft entirely from abroad.
Remote incorporation. Physical travel to Hungary is not required. The entire process is handled through a power of attorney granted to a local Hungarian attorney — documents are signed remotely and sent by courier or executed via video conference.
Extensive tax treaty network. Hungary has double taxation agreements with over 80 countries, significantly reducing withholding taxes on cross-border payments.
What non-residents actually need — myths vs reality
| Often assumed | Actually required? | How it is handled |
|---|---|---|
| Hungarian nationality | No | 100% foreign ownership permitted |
| Living in Hungary | No | Full remote management |
| Resident director | No | Not required for a Kft |
| Travel to Hungary | No | Power of attorney to local attorney |
| Delivery agent | Yes — mandatory | Required for non-resident members and executives |
| Hungarian attorney | Yes — mandatory | Company formation requires a licensed local lawyer |
| Minimum capital deposit | Yes — HUF 3,000,000 | ~€7,500 — can be used immediately for business |
| Bank account before incorporation | No | Started in parallel after incorporation |
The Kft: the right structure for most non-residents
The Korlátolt Felelősségű Társaság (Kft) is the Hungarian equivalent of a Limited Liability Company (LLC) and the standard structure for foreign entrepreneurs entering Hungary.
Key features:
- Minimum share capital: HUF 3,000,000 (~€7,500) — deployable immediately for business expenses, not locked in a deposit account
- Limited liability for members — personal assets protected
- Minimum one member and one managing director — both can be foreign nationals
- No resident director requirement
- Delivery agent mandatory for non-resident members and executive officers
- Registration with the Court of Registration — typically completed in 5 to 10 working days
Who it suits: SMEs, consultants, e-commerce businesses, EU distribution structures, holding companies and any entrepreneur seeking a low-tax EU base with full single market access.
The delivery agent: a simple but essential requirement
This is the key requirement that most non-resident founders are unaware of.
Under Hungarian law, any non-resident member or executive officer of a Hungarian company must appoint a delivery agent (kézbesítési megbízott) — a person or entity with a registered Hungarian address who is authorised to receive official correspondence on behalf of the non-resident party.
In practice: the delivery agent receives official documents from Hungarian authorities — tax authority, court of registration, government agencies — and forwards them to the non-resident member or director. The delivery agent does not manage or represent the company operationally.
We coordinate the appointment of a qualified delivery agent as part of our formation service — so your company is compliant from day one.
How company formation in Hungary works: step by step
Step 1 — Power of attorney (Week 1)
A specialised power of attorney is prepared authorising a licensed Hungarian attorney to act on your behalf throughout the incorporation process. This eliminates any need to travel to Budapest.
Step 2 — Company name and documents (Week 1)
Confirmation of company name availability, preparation of the articles of association and all founding documents in Hungarian. For foreign corporate founders, an official company extract and board resolution are required — translated into Hungarian and legalised.
Step 3 — Delivery agent appointment (Week 1)
Appointment of a qualified delivery agent with a registered Hungarian address for each non-resident member and executive officer.
Step 4 — Court of registration filing (Week 1–2)
Your Hungarian attorney submits the incorporation documents electronically to the Court of Registration. Registration typically completes within 5 to 10 working days.
Step 5 — Tax and social security registration (Week 2)
Mandatory registration with the Hungarian tax authority (NAV) and social security system. VAT registration if applicable.
Step 6 — Bank account opening (in parallel)
The banking file — KYC, source of funds, business rationale — is prepared and introduced to a bank suited to the company’s profile. Starting this in parallel with incorporation is essential.
Tax in Hungary in 2026: the complete picture
According to Tax Foundation’s 2026 European corporate tax data, Hungary’s 9% corporate tax rate is the lowest in the European Union by a significant margin.
Corporate income tax — 9%. Flat rate on all profits. No progressive scale, no surtax, no exceptions — 9% applies uniformly to all companies regardless of size or activity.
No withholding tax on dividends, interest and royalties. When paid to non-individual beneficiaries, no withholding tax applies. This is a major structural advantage for holding companies and group treasury arrangements.
Personal income tax — 15%. Flat rate. One of the lowest in the EU for individuals.
Local business tax — up to 2%. A municipal tax on adjusted net revenue — the effective rate varies by municipality, with Budapest at approximately 2%.
VAT — 27%. The highest standard VAT rate in the EU. However, it applies to local sales only — exported services are generally zero-rated.
R&D incentives. Companies engaged in qualifying R&D activities can benefit from additional tax deductions — up to 300% of eligible costs in certain configurations.
Bank account for your Hungarian company: two options
Opening a bank account for a Hungarian company owned by non-residents requires preparation. Hungarian banks have strengthened their KYC requirements significantly in recent years.
Option 1 — Online bank (EMI) — included in our service
Wise Business, Revolut Business and Airwallex accept Hungarian companies and open accounts remotely within 24 to 72 hours. Multi-currency IBAN, low fees, no minimum balance. Suitable for most trading operations — invoicing clients, receiving payments, paying suppliers.
This is the fastest and most accessible option for non-residents — available as a separate service.
Option 2 — Traditional Hungarian bank — separate service
OTP Bank, K&H Bank and other traditional Hungarian banks offer full banking services including credit facilities and local currency (HUF) accounts. However, they require full KYC documentation, in-person or video meetings, and processing times of 4 to 10 weeks. We prepare the full onboarding file tailored to your profile for the smoothest possible account opening.
This is a separate service. We prepare the complete onboarding file and introduce your company to the right bank for its profile. We prepare the complete onboarding file and introduce your company to the right bank for its profile — maximising your chances of a smooth opening.
Comparison: Hungary vs other European jurisdictions
| Criterion | Hungary | Ireland | UK | Switzerland |
|---|---|---|---|---|
| Corporate tax | 9% | 12.5% | 19–25% | 11–15% |
| Withholding tax (dividends) | 0% (non-individuals) | 25% | 0% (participation) | 35% |
| EU member | Yes | Yes | No | No |
| Minimum capital | ~€7,500 | €1 | £1 | CHF 20,000 |
| Setup timeline | 5–10 days | 2–3 weeks | 24–48h | 2–4 weeks |
| Resident director | No | EEA or bond | No | Yes |
| Best for | Low-tax EU base, holding | EU market, tech | Global credibility | Premium holding |
What your Hungarian company must maintain
Incorporation is the start, not the finish. A Hungarian Kft must:
— Maintain a registered office address in Hungary
— Keep a qualified delivery agent in place for all non-resident members and executives
— Prepare annual financial statements and file them with the Court of Registration
— Register for and file corporate income tax annually with NAV
— Register for VAT once turnover exceeds the applicable threshold
— Maintain a register of beneficial owners (UBO register)
— Register with the social security system if employing staff
We manage ongoing compliance — annual filings, accounting, tax returns and UBO updates — so your Hungarian company stays clean year on year.
Our Hungary formation service: what SGCS provides
Swiss Global Corporate Services has been based in Geneva for over 20 years. We provide end-to-end company formation in Hungary for non-residents — coordinating the local Hungarian attorney, the delivery agent, and the banking introduction from a single point of contact.
Power of attorney coordination. We prepare the POA documentation so the entire process proceeds without travel.
Full Kft incorporation. Articles of association, court of registration filing, all post-incorporation documents — coordinated through our licensed Hungarian legal partner.
Delivery agent. Appointed for all non-resident members and executive officers — mandatory compliance handled from day one.
Bank account opening. EMI account introduction available as a separate service, alongside traditional Hungarian bank introduction with full file preparation.
Ongoing compliance. Annual filings, accounting, tax returns and UBO updates.
Three languages. English, French and Spanish — unique reach across anglophone, francophone and Hispanic markets.
SGCS vs typical formation providers
| SGCS | Typical online provider | |
|---|---|---|
| Base | Geneva — neutral international hub | Online only |
| Experience | 20+ years | Variable |
| Languages | EN, FR, ES | EN only |
| Delivery agent | ✅ Coordinated | ❌ Often overlooked |
| Local attorney coordination | ✅ Included | ❌ Client arranges separately |
| Bank — EMI | ✅ Available separately | ❌ Extra or referral |
| Bank — Traditional | ✅ Available separately | ❌ Not offered |
| Ongoing compliance | ✅ Full service | ❌ Extra |
FAQ: company formation in Hungary for non-residents
Can a non-resident own 100% of a Hungarian company?
Yes, without restriction. Hungarian company law places no nationality or residency requirement on Kft members. You can own, control and direct a Hungarian Kft entirely from outside Hungary. There is no requirement for a Hungarian co-founder, local partner or resident director.
What is a delivery agent and why is it mandatory?
A delivery agent (kézbesítési megbízott) is a person or entity with a registered Hungarian address appointed to receive official correspondence from Hungarian authorities on behalf of a non-resident member or executive officer. It is a mandatory legal requirement — a company cannot be registered without one for each non-resident party. We coordinate this as part of our formation service.
Do I need to travel to Hungary to form a company?
No. The entire process is completed remotely through a power of attorney granted to a licensed Hungarian attorney. Documents are signed remotely and sent by courier, or executed via video conference. No physical presence in Hungary is required at any stage of incorporation.
What is the minimum share capital for a Hungarian Kft?
HUF 3,000,000 — approximately €7,500 at current exchange rates. Unlike many jurisdictions, this capital does not need to be deposited in a blocked account before incorporation. It can be used immediately for business expenses once the company is registered.
Is Hungary's 9% tax rate permanent?
Yes — it is the standard statutory corporate income tax rate, not a temporary incentive. It applies to all companies operating in Hungary regardless of size or sector. The OECD global minimum tax of 15% applies only to multinational groups with consolidated revenues exceeding €750 million — most SMEs and mid-sized structures are unaffected.
Are there withholding taxes on dividends paid by a Hungarian company?
No withholding tax applies when dividends, interest or royalties are paid to non-individual beneficiaries — such as a foreign holding company. This is one of Hungary’s most significant structural advantages for international group structures.
Can my Hungarian company open a bank account remotely?
Yes — through an EMI such as Wise Business or Revolut Business, accounts open remotely within 24 to 72 hours. Traditional Hungarian banks may require in-person or video meetings and take 4 to 10 weeks. We prepare the full onboarding file tailored to your profile and handle the bank introduction directly. We manage both options.
What are the ongoing compliance costs for a Hungarian Kft?
Annual costs include registered office, delivery agent, annual financial statements preparation, corporate tax filing and court of registration filings. We provide a full ongoing compliance package covering all requirements.
Start your Hungarian company formation today
Every situation is unique. Send us two lines on what the company will do and who will own it. We confirm the right structure, the delivery agent pathway, and a realistic timeline — before you commit to anything.
Swiss Global Corporate Services — Geneva, Switzerland. 20+ years. EN / FR / ES.