There is no doubt that Hungary is in the heart of Europe. Therefore, the country is not only a hub of international trade on the continent, but it is also located at the crossroads of civilizations and has a very favourable economic environment welcoming and supporting everybody thinking about starting a business.
If you are thinking about company formation in Europe you should consider your options before taking the first step. Starting a company in Great-Britain is easy, but because of the Brexit, it is getting more and more difficult to enter the market of the European Union with a British company. Furthermore, in Germany and Austria, you should take into consideration that not only the personal income tax but also the corporate income tax is quite high.
Much better opportunities are waiting for you in Hungary, where
the government has reduced the corporate income tax to only 9% lately,
which is the lowest among the EU member countries. Furthermore, the personal income tax is a single rate and only 15%, which is also very favourable in Europe says Melinda Győri Dr. legal consultant at BusinessImmigration.hu.
Besides, those who would like to acquire a second passport should also consider the option of company formation in Hungary. Because the Hungarian passport is now the world’s 10th most wanted travel document allowing to visit 182 countries without a visa. And to get a permanent residence permit, one needs to start a business in Hungary and have a business plan.
Those who would like to enjoy the benefits of an EU residence permit in Hungary
can start a business or buy at least two real estates for the minimum of 200,000 €.
As in Hungary it is possible to get EU residency by company formation or obtain EU residency by real estate investment as well.
Some of the key benefits of company formation in Hungary are:
- Extremely low corporate income tax (9%)
- Low personal income tax (15%)
- VAT free business activity within the European Union
- Visa-free travel within the European Union
- Central location in the European Union
So if you are looking for a very favourable economic environment and want to make business in the European Union, Hungary is a great choice.
But don’t forget, in most cases you will need some help in the company registration, in business planning or in the accountancy.