How to open a company in Hungary in 2026: Kft., taxes, VAT, and invoices
Hungary remains an attractive jurisdiction for entrepreneurs seeking to establish a European company with access to the EU market. As of 2026, the most common form for small and medium-sized businesses is the Kft.—a limited liability company, similar to a European LLC. Its founders can be either individuals or legal entities.
Basic Company Requirements
To register a Kft., a minimum share capital of 3 million Hungarian forints must be established. The company may have one or more shareholders. A legal address in Hungary, a name, and a definition of its business activities are also required.
The incorporation documents are prepared and submitted with the assistance of a Hungarian lawyer. After registration, the company must complete tax and other administrative formalities, including registration with the tax authorities. The Hungarian Tax Administration (NAV) specifies that tax registration must be completed before commencing business operations.
Taxation in Hungary
One of Hungary's advantages remains its competitive corporate tax system. Companies are subject to a 9% corporate tax rate, and alternative regimes, including KIVA, may apply depending on the business structure and taxpayer criteria.
VAT requires special attention. In Hungary, the standard VAT rate is 27%, but reduced rates and special rules apply for certain transactions. In 2026, the threshold for selecting the domestic VAT exemption regime was increased to HUF 20 million of annual turnover, subject to certain conditions.
When working with European clients, it is important to consider the rules for intra-EU supplies and services, the availability of a VAT number, and reporting requirements.
Bank Account and Business Operations
After registering a Hungarian company, it is important to set up a corporate bank account and accounting services. Banks and payment institutions can verify the ownership structure, company activities, origin of funds, business model, and projected turnover.
For businesses with foreign owners, it is especially important to prepare documents in advance regarding beneficiaries, source of funds, customer contracts, and economic activity. Formal company registration without any actual business activity can complicate banking services.
Why Hungary is Interesting in 2026
A Hungarian Kft. allows you to establish a fully-fledged structure within the EU, enter into international contracts, work with European counterparties, and utilize local infrastructure for accounting and banking services. However, before registration, it is necessary to evaluate the tax model, VAT, substance requirements, and future management structure.
IT-OFFSHORE Help
IT-OFFSHORE helps entrepreneurs organize company registration in Hungary, select a suitable corporate structure, prepare the necessary documents, and resolve issues related to the legal address, accounting, tax support, and opening a corporate account.
Our comprehensive approach allows us to take into account Hungarian legal and banking compliance requirements in advance, ensuring that the European company is not only registered but also prepared for full operation in 2026.
