Hungary takes top place in tax burden ranking
Hungary has the eighth lowest tax burden in the European Union.
Among Hungary’s neighbours, only Romania pays less tax as a share of GDP. In EU terms, the Baltic States (Lithuania, Latvia, Estonia), Malta, Bulgaria and Ireland have the lowest tax ratios. Among the V4 countries, Hungary reached the lowest rate in 2021.
A lower tax burden can also have a competitiveness-enhancing effect. In particular, the corporate tax burden in Hungary compares favourably with other EU countries, which is also due to the low tax rate.
The 9 percent Hungarian corporate tax rate could be very attractive for businesses.
For comparison, the corporate tax rate is 18% in Croatia, 19% in the Czech Republic and Poland, 21% in Slovakia, 25% in Austria and 30% in Germany, while the EU average is 20.7%. In an EU comparison, the personal income tax rate of 15% is also favourable, as it is significantly lower than the EU average of 36.9%.
What other advantages can Hungary offer to a foreign company?
Hungary is located in the centre of Europe, which gives it a huge infrastructural advantage.Since 2004, it has been a member of the European Union, which has made it part of the world’s largest single market. It is not an offshore territory and economic activities are fully legal.
However, an even more important factor in such an important decision is the economic benefits that this small country has to offer. It is open to companies from abroad entering or newly forming. It has the lowest corporate tax rate in the European Union (9%), which significantly reduces the tax burden on business. Another advantage is that registering a company with the Companies Registry takes virtually 1 working day, so you can start operating the very next day.
Why Company Assistant Service Ltd?
Our organisation offers quality and full services necessary for the proper functioning of a company! We speak German and English perfectly, all contracts with our foreign clients are concluded in English. It is important for us to learn about and promote the corporate culture of other countries. We maintain an active relationship with our clients, helping them to operate as cost-effectively as possible and saving them time by providing them with services ranging from administration to the receipt of official correspondence and mail.
Thanks to our banking connections, our foreign partners can also open bank accounts without any problems. It is very important to pay attention to where a company is registered! We offer our clients a reliable and legal registered office that meets the criteria of large companies.
We provide full support in English for our foreign clients. You can also benefit from a one- stop-shop service for headquarters, tax advice and legal services. Are you convinced? Contact us and we will be happy to help you find the best solution for your business!
Created by Company Assistant Service Ltd.