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Is it profitable to open a company and an account in Hungary

Open a company and bank account in Hungary, 9% corporate tax

2020-01-08
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Opening a company and an account in Hungary is a profitable solution for entrepreneurs. Most banks in this jurisdiction require a small amount of documentation from foreign citizens who plan to open an account. The country is popular among Russian businesspeople, as it is closely located to Russia.

Hungary offers foreign investors the advantageous capital investment offers. Сreating a bank account in the country will make it possible to perform operations with national and other currencies, such as dollars or euros.

Opening an account for a non-resident

Many financial institutions offer foreigners to open an account given that they can provide copies of their passports. But some banks require additional documentation - residence and work permits. The cost of opening an account and other transactions may vary depending on the financial institution.

To buy an account in Hungary, a non-resident must provide:

  • Original identity documents;
  • Copies of the Articles of Association with translation into Hungarian, certified by a notary office;
  • Confirmation of company registration;
  • Details about the shareholder and the beneficiary;
  • Bank account statements and invoices.

Banks may also require additional information. There are about 70 financial institutions in total, some of which are branches of international banks.

Which bank to choose

Opening an offshore in Hungary and an account for it is a promising decision for businesspeople. The economic and political situations in the country are stable, the tax burden is comfortable, and the state has a positive attitude towards non-resident businesses.

One of the banks where it is possible to open an account is the OTP bank. The organization was established in the late 40s, and the bank has staff who speak English. It is possible to open a multi-currency account and to use online - bank. You can find out the cost of opening an account with this or other banks from our experts at IT-OFFSHORE.

Another well-known financial institution is KDB bank. It was established in the early '00s. The staff speaks Hungarian. You can open an account that works with different currencies and use the Internet bank.

K&H Bank was established over 30 years ago. The organization has a Hungarian-speaking staff. Like most other financial institutions, K&H allows you to create a multi-currency account and use an online bank.

Opening of the KFT company

KFT is used in Hungary as an intermediate holding company for the purposes of export and import operations. The advantage of establishing a firm in Hungary is that the jurisdiction has a positive reputation, and there is no image preconceptions regarding offshore companies. There is no currency control. The profit rate is one of the lowest in Europe.

When registering a firm there is no need to pay a fee for repatriation of income in the form of dividends. In addition to that, the jurisdiction has concluded a treaty on avoidance of double taxation with several countries worldwide. The company is required to submit financial statements medium-sized and large enterprises must pass an audit.

The income tax rate is 9%. The company's income received in the form of dividends is not subject to a levy. A company of KFT type does not issue shares. An obligatory requirement for the company’s operation is the availability of an account in a local bank.

In order to have an account, you are required to have at least one shareholder who must be an individual. No local director is required. There are no expectations when it comes to a secretary and his residency. The company is required to pay an annual state fee of 5,000 HUF. 

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