Starting a business in Hungary can be an attractive option for entrepreneurs, investors, freelancers, and foreign business owners looking for a base in Central Europe. Hungary offers access to the European Union market, a developed transport network, a skilled workforce, and a relatively competitive corporate tax environment.
Whether you want to establish a small local business, launch a technology startup, open a restaurant, provide professional services, or establish a Hungarian company for international operations, the first step is choosing the right legal and tax structure.
Business registration, taxation, licensing, immigration, and employment requirements depend on your business activity and personal circumstances. Always check the current requirements with the Hungarian authorities or a qualified Hungarian accountant or lawyer before starting operations.
Hungary is located in Central Europe and provides businesses with access to the European Union's single market. Budapest is the country's main commercial, financial, technology, tourism, and startup center, while other Hungarian cities also offer opportunities in manufacturing, logistics, agriculture, tourism, and services.
The Hungarian Investment Promotion Agency (HIPA) provides free services to Hungarian and foreign investors, including assistance with investment locations, incentives, suppliers, workforce information, and project implementation.
One of the most important decisions is choosing the legal form of your business. The appropriate structure depends on the number of owners, investment level, liability, expected revenue, and type of activity.
| Business Structure | Typical Use | Key Point |
|---|---|---|
| Individual Entrepreneur | Freelancers, consultants and small businesses | Simple structure for eligible individuals |
| Kft. | Small and medium-sized companies | Limited-liability company with at least HUF 3 million registered capital |
| Private/Public Company (Rt.) | Larger businesses and investment structures | More complex corporate structure |
A Hungarian Kft. (korlátolt felelősségű társaság) is broadly comparable to a limited-liability company. The Hungarian Civil Code provides for minimum registered capital of HUF 3 million for a Kft.
An individual entrepreneur can be an appropriate structure for certain freelancers, professionals, and small business owners.
According to Hungary's National Tax and Customs Administration (NAV), the start of individual entrepreneurial activity can be reported electronically through the NAV's Entrepreneurial Administration service or personally at a NAV customer service office. The notification itself is free of charge.
Hungary uses activity classification codes, and entrepreneurs should verify whether their selected activity has qualification, licensing, or notification requirements before beginning operations.
For entrepreneurs who want a separate limited-liability company, a Kft. is one of the most common Hungarian company forms.
Choose an available company name that complies with Hungarian company-law requirements.
Decide who will own the company, the ownership percentages, management structure, registered office, and business activities.
A Kft. requires a company agreement, or articles of incorporation in the case of a single-member Kft. The company formation process requires legal assistance for preparing and submitting the relevant documents.
The statutory minimum registered capital for a Kft. is HUF 3,000,000. The exact payment arrangements should be established with your lawyer and accountant.
The company registration process is handled through the Hungarian company-registration system. Tax registration is connected with company registration, and the tax number also serves as the VAT identification number where applicable.
A Hungarian company should arrange professional accounting and establish appropriate procedures for invoicing, payroll, tax filings, financial records, and statutory reporting.
Tax planning is an important part of starting a company in Hungary. The exact tax burden depends on the legal form, activity, revenue, employees, and chosen tax regime.
Hungary's corporate income tax rate is 9% of the positive corporate tax base under the standard corporate tax system.
Local municipalities may impose local business tax. The maximum rate for permanent business activities is generally 2%, although the actual rate depends on the municipality and applicable rules.
Hungary has a VAT system with several applicable rates. The standard VAT rate is 27%, with reduced rates applying to certain goods and services. Businesses should determine their VAT obligations based on their actual activities and customers.
Do not assume that the corporate tax rate is your company's total tax burden. Payroll taxes, social contributions, local business tax, VAT, accounting costs, and other obligations may also apply.
| Area | Hungary |
|---|---|
| Corporate income tax | 9% standard rate |
| Local business tax | Up to 2%, depending on municipality |
| Standard VAT | 27% |
| Kft. minimum registered capital | HUF 3 million |
| Individual entrepreneur registration | NAV Entrepreneurial Administration / NAV customer service |
After establishing your business, you should arrange appropriate banking and accounting services. The exact requirements depend on the legal form and tax status of the business.
Not every Hungarian business requires a special operating licence. However, certain activities are subject to professional qualifications, notifications, registrations, or permits.
Examples can include regulated activities in areas such as healthcare, hospitality, food production, construction, transportation, financial services, and certain professional services.
Before starting operations, check the requirements for your exact activity rather than assuming that company registration automatically gives permission to perform the activity.
Foreign entrepreneurs can establish businesses or invest in Hungary, but immigration and residence rules are separate from company-registration rules.
Your nationality, residence status, business activity, and purpose of stay can affect which immigration rules apply. Non-EU nationals should therefore check Hungarian residence and business-activity requirements before relocating.
For larger foreign investment projects, HIPA offers assistance with location selection, investment incentives, workforce information, permits, suppliers, and other aspects of establishing operations in Hungary.
Hungary offers opportunities across traditional industries as well as newer technology and service sectors.
HIPA identifies automotive, battery, business services, electronics, ICT, food, life sciences, industrial products, logistics, and medical technology among its key investment sectors.
Budapest is the country's main technology and startup center, but technology businesses can operate from other Hungarian cities as well.
Budapest is generally the strongest choice for businesses requiring access to international customers, professional services, technology talent, tourism, finance, and multinational companies.
Debrecen is an important regional center with opportunities in education, healthcare, manufacturing, technology, and business services.
Szeged has a strong university and research environment and can be attractive for technology, education, healthcare, and research-related businesses.
Győr is particularly important for manufacturing, engineering, automotive, logistics, and industrial supply chains.
Cities such as Pécs, Miskolc, Kecskemét, Székesfehérvár, and others can also offer lower operating costs and access to regional markets and skilled workers.
The Hungarian Investment Promotion Agency provides a one-stop-shop service for foreign investors. Its services include location selection, information gathering, investment incentives, supplier development, and assistance during implementation.
HIPA reported that between 2014 and the end of 2025 it had guided more than 2,300 investment projects with a combined value exceeding €66 billion and helped support the creation of nearly 187,000 jobs.
If your company plans to employ staff, you need to consider Hungarian employment law, payroll, social contributions, employment contracts, working conditions, employee benefits, and reporting obligations.
Foreigners can establish or invest in Hungarian businesses, but the rules depend on their nationality, residence status, business structure, and activity. Immigration permission and company formation should be considered separately.
A Kft. has a statutory minimum registered capital requirement of HUF 3 million. Additional costs can include legal services, accounting, registration-related expenses, banking, registered-office services, licences, equipment, and operating capital.
The standard Hungarian corporate income tax rate is 9% of the positive corporate tax base. Other taxes and contributions can also apply.
A Kft. is a Hungarian limited-liability company. It is one of the common structures used by small and medium-sized businesses and requires at least HUF 3 million in registered capital.
Eligible individuals can operate as individual entrepreneurs. NAV allows the commencement of individual entrepreneurial activity to be reported electronically or at a NAV customer service office.
Hungary can be attractive for small businesses because of its Central European location, access to the EU market, developed infrastructure, workforce, tourism market, and relatively competitive corporate tax rate. However, the suitability depends heavily on the industry and target customers.
Professional accounting is strongly recommended, particularly for companies subject to Hungarian bookkeeping, payroll, VAT, corporate tax, and reporting requirements.