We provide one-stop-shop services to foreign small and medium-sized enterprises that wish to take advantage of Hungary's low tax rates, stable economy and low operating costs. Together with our partners, we provide all the company formation, tax advisory, accounting, legal, residence/employment permit-related and property-related services and administrative support our clients need, whether they are active in international trade or wish to relocate their business activities to Hungary. We are seasoned professionals with a depth of knowledge across a wide range of legal fields. In addition, our fees are extremely competitive. Feel free to get in touch with us for a free consultation.

Hungary boasts a corporate profit tax rate of 9%, the lowest in the OECD. Apart from the standard 9% corporate profit tax regime, small and medium-sized corporations generating a maximum yearly turnover of 9 million EUR are eligible to operate under a preferential tax regime: no corporate profit tax and employer's social security tax (19%) is levied in this tax regime, instead a 13% tax is levied on employees' wages regardless of the profits realized. Hungary's flat personal income tax rate of 15% can be utilized by owners of corporations in certain tax optimization strategies. Furthermore, the country ranks 1st globally in foreign direct investment (FDI) to GDP ratio.

Population 9.8 million
Area 93.000 km2
Currency forint
GDP per capita 15.800 USD (2017, statista.com)
PPP GDP per capita 26.700 USD (2016, World Bank)
GDP growth (2017) 4%
GDP growth forecast 4.4% (2018, OECD)
3.6% (2019, OECD)
public debt to GDP (2017) 73% (tradingeconomics.com)
government budget balance (2017) -2%
government budget deficit forecast 2.6% (2018, OECD)
2.1% (2018, OECD)
1.8% (2019, Hungarian Government)
Massachusetts Institute of Technology economic complexity country ranking (2016) 15th
export volume (2017) ca. 120 billion USD (KSH)
major exports (2017) cars, vehicle parts, spark-ignition engines (18.6%, MIT)
top export destination (2017) Germany (28%, MIT)
current account balance as a share of GDP (2017) 3.60%
foreign direct investment to GDP 55.5% (2016, World Bank), the highest rate worldwide
government bond 10y (June 2018) 3%
credit rating (S&P) BBB- positive outlook
unemployment rate (2018) 3.8% (tradingeconomics.com)
national minimum salary gross 510 USD
average national wage (2017) Gross 1200 USD (KSH), net 800 USD after tax
average wage in the capital (2017) gross 1400 USD (estimate), net 930 USD after tax
wage growth (2017) 11%
government forecast of the wage growth 10% (2018), 8.8% (2019)
  • Budapest is the European Union’s 9th largest city with 1.8 million inhabitants; the EU statistical region of Budapest (Central-Hungary) has a population of 2.9 million.
  • The Economist Intelligence Unit’s Global Liveability Report (2017) ranked Budapest to the 36th place on the list of the world’s most liveable cities
  • Central-Hungary ranked
    • 97th by nominal GDP output (similar to regions of Luxemburg and South Denmark)
    • 38th by Purchasing Power Standards
    • 87th by PPS per capita
    among the EU’s 276 statistical regions
  • Budapest ranked 70th on the Global Financial Centres Index (2017)
  • Hungary is second only to Iceland when it comes to per capita thermal water quantity; there are 125 thermal springs in Budapest and the city is home to 11 thermal baths
  • according to the Innovation Cities Index 2016-2017 Budapest ranked 71th, next to Kyoto and Taipei
  • 5% of Budapest’s workforce is employed at Shared Service Centers operated by companies like GE, Morgan Stanley, Vodafone, British Petroleum, British Telecom, Tata, Alcoa.

Contact Details

Vacsora Law Office
1027 Budapest, Margit krt. 54. III/1

Csaba Vacsora, dr.
+36 30 623 0375

This website is maintained by Vacsora Law Office, registered with the Budapest Bar Association, in accordance with the legislation and internal regulations applicable to attorneys, which are available along with information on the rights of clients at www.magyarugyvedikamara.hu.