Opening a company in Hungary: locals, foreigners, freelancers and digital nomads

At a glance: Kft. with HUF 3 million capital (about 7,500 euros, payable in stages), mandatory Hungarian lawyer, simplified registration in 1 to 5 days, corporate tax 9 percent plus local business tax up to 2 percent, VAT exemption to HUF 20 million, KATA for small sole traders, White Card for non-EU remote workers. Legal forms. Sole trader (egyeni vallalkozo). Kft.: minimum capital HUF 3 million, may be registered before full payment (no dividends until paid; at least half upfront is common practice). Zrt.: HUF 5 million. Nyrt. (public): HUF 20 million. Bt. and Kkt. partnerships: no minimum. Registration. Articles drafted and countersigned by a Hungarian attorney and filed electronically with the Court of Registration: the simplified procedure with template articles is decided within one working day (one to five in practice) and is duty-free; the standard procedure costs HUF 100,000 plus publication and takes up to 15 working days. Lawyer HUF 50,000 to 200,000; chamber registration HUF 5,000 a year; the tax number comes with registration and a Hungarian bank account must be opened within 15 days, normally by the director in person. Typical total HUF 100,000 to 400,000 excluding capital; a registered seat is required (seat-service providers allowed). Taxes 2026. Corporate tax 9 percent (minimum base 2 percent of revenue), plus local business tax up to 2 percent of adjusted revenue; KIVA at 10 percent is an alternative for small companies. Dividends: no withholding for companies; individuals pay 15 percent personal tax plus 13 percent social contribution up to a cap. VAT 27 percent (18 and 5 reduced); exemption up to HUF 20 million turnover (22 million in 2027, 24 in 2028). Personal income tax flat 15 percent. Freelancers and the self-employed. Register as a sole trader online with NAV, free and same-day. Regimes: KATA, HUF 50,000 a month covering tax and contributions, revenue cap HUF 18 million, only for full-time sole traders invoicing private individuals; flat-rate taxation (atalanyado) with 45 percent deemed costs (80 or 90 for listed trades), revenue ceiling HUF 38.7 million, the first HUF 1.94 million of income tax-free; or entrepreneurial tax at 9 percent plus dividend tax. Minimum contributions for a full-time sole trader in 2026: 18.5 percent contribution plus 13 percent social tax on at least the minimum wage of HUF 322,800, about HUF 101,700 a month (more for skilled work). Foreigners. EU/EEA citizens register residence after 90 days and trade freely. Non-EU founders: residence permit for guest self-employment (since the 2024 immigration law), for sole traders showing income of 24 times the minimum wage (HUF 7.7 million a year) or company executives whose company employs five Hungarian or EEA staff or proves operational necessity; business plan, funds, accommodation and insurance; one year, extendable to three in total, 21-day processing, quarterly income reports, no family reunification in the first year, no path to the National Residence Card. No resident director requirement, but foreign officers without a Hungarian address appoint a delivery agent. 100 percent foreign ownership allowed. Branch of a foreign company. Fioktelep registered by a lawyer with the parent's apostilled articles, extract and decision, a seat and a branch manager; duty HUF 50,000; three to four weeks; no capital. Taxed on Hungarian profit at 9 percent plus local business tax, Hungarian books, audit unless the parent is in the EU; the parent is fully liable. A Kft. subsidiary is the usual choice. Digital nomads. Yes: the White Card for non-EU remote workers employed by or owning a company outside Hungary. Income at least 3,000 euros a month over the previous six months, savings of about 10,000 euros; one year plus one extension (two years maximum, then leave and reapply); fee 110 euros; about three months processing; no work for Hungarian companies and no shares in them; no family inclusion; no path to permanent residence. Tax residence after 183 days at 15 percent. Changed recently. VAT exemption HUF 20 million (2026); flat-rate cost ratio 45 percent (2026) rising to 50 (2027); social tax base no longer 112.5 percent of the minimum wage (2026); minimum wage HUF 322,800; the 2024 immigration law replaced the old permits with guest self-employment, guest worker, White Card and the National Residence Card with its cultural test. Figures checked October 2026 from NAV, the National Directorate-General for Aliens Policing and Hungarian advisers; amounts change every January. Confirm with a licensed adviser in Hungary before you file.