Hungary, as a member of the European Union and part of the Schengen zone, is situated in the heart of Europe. Hungary is considered as bridging Western and Central Europe with Southeast Europe, three core TEN-T corridors traverse through the country. Thanks to the advantageous location, Hungary is an attractive destination to inward foreign direct investments that boost the Hungarian economy and labour market. By doing a business in Hungary, not only the Hungarian but the whole EU market can be reached, thanks to the free movement of goods principle of the EU. The skilled work-force to a reliable operation of a business is provided by the world-class Hungarian universities.
The Employer’s tax on the wages were reduced from 27% to 15.5% in the last eight years, the corporate income tax was reduced to 9% flat rate. The gross minimum wage is EUR 610* (that means EUR 690* total labour cost), while the gross mean wage is EUR 1,357* that means EUR 1,534* total labour costs.
Registering a company in Hungary is a relatively fast process, it usually takes circa seven days. The minimum share capital of a limited liability company is HUF 3,000,000 (circa EUR 7,894*), which amount have to be paid within three years at the latest after the registration.
* HUF/EUR exchange rate: 380
European Commission (2020). TENtec Interactive Map Viewer.
Hungarian Central Statistical Office (2020). Average gross earnings of full-time employees by location of employer's registered office.
International Bank for Reconstruction and Development / The World Bank (2019). Doing Business 2019.
National Tax and Customs Administration (2020). The social tax rate.
OECD (2020), FDI stocks (indicator). doi: 10.1787/80eca1f9-en (Accessed on 15 September 2020).
The Government Decree 367/2019 (XII. 30.) on the Mandatory Minimum Wage and on the Guaranteed Wage Minimum in 2020.
The first steps towards Hungarian citizenship - permanent residence
Obtaining an EC or a National Permanent Residence Permit provides significant advantages over holding a normal residence permit. Learn the main eligibility criteria and advantages of these immigration documents, as well as the differences between them.