Starting an e-commerce business in Hungary-is it difficult?

Starting an e-commerce business in Hungary is a game-changing opportunity for businesses. There are many positive signs that people in Hungary feel more freedom to build businesses without limits; however, there are still strong competitors there, and you need to be aware of that.

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There are widely famous ecommerce websites such as Recart, OptiMonk, Pepita.hu, Syncee, Netrisk.hu that are located in Hungary. However, to compete with them, you need to follow some important steps.

3 Important aspects to know before you start (with advice)

Domain name and branding 

First, you need to focus on your brand name and the website you purchase. In Hungary, if you want to signal that it is a local business website, you need to buy a website with a .hu ending so people in Hungary understand and trust you.

We found a web hosting company named UltaHost that gives you the opportunity to purchase a domain and offers a special option for Hungarian VPS hosting. So, when you purchase a domain from UltaHost, you can also purchase a Hungarian VPS.

Right People Hiring 

It is said that the best drivers of a business are the people who work there. In Hungary, there are great opportunities to build a team of different nationalities. There are people from Turkey, Armenia, European countries, Russia, and all over the world, so when hiring, they can become valuable connections for importing products from their home countries.

You can hire people based on contracts rather than keeping them in-house. You just need to use invoice templates for their provided services so you can balance and control the expenses.

Taxes 

• Flat corporate tax rate: 9% (one of the lowest in Europe)
• Standard VAT rate: 27% (very high EU rate)
• Set by municipalities (up to 2% max)
• Capital gains tax -Usually taxed under 15% personal income tax

These are the general things you need to know about taxes. However, there are many nuances regarding the niche of the products you will sell on your e-commerce platform. Be sure to have a consultation with people who are specialized in law in Hungary.

Why start a business In Hungary?

• Growing market – eCommerce has been expanding fast (around ~20% growth historically)
• High online shopping adoption – over 77% of people shop online
• Lower costs – marketing and operational expenses are cheaper than Western Europe
• EU access – you can scale to all EU markets once set up

Facts you Need to know before deciding the investment size in Hungary ! 

• As of early 2026, the population of Hungary is approximately 9.5 million to 9.6 million people. 
• Monthly accounting required
• Hungarian business bank account is required
• You can own a company without Hungarian residency but some banks prefer local presence ,directors can be foreign If you actively manage the company in Hungary → tax residency rules may apply.
• Local business tax depends on the city .Example:Budapest: ~2%. Smaller towns: lower or sometimes simplified schemes
• Salaries are lower than Western Europe
• You must hire a certified accountant

Conclusion

Concluding the article: Starting an e-commerce business in Hungary is not hard; it is easy, but mastering it is difficult. First, you need to follow the advice we shared with you. Keep in mind the facts we shared and be sure that, whether you decide on a niche for your e-commerce store and it does not matter which products you will provide, Hungary is a better country for businesses to start and sell your products in whole EU countries rather than just focusing on the local market, as there you gain more opportunities.

Disclaimer: the author(s) of the sponsored article(s) are solely responsible for any opinions expressed or offers made. These opinions do not necessarily reflect the official position of Daily News Hungary, and the editorial staff cannot be held responsible for their veracity.