Hungarian company (low tax) + bank account for non-resident

[Min Park]

Hi,

Seem Hungarian company tax is 9% and dividend tax is 0%.

First problem is Initial capital ~10,000USD

Do someone have experience with Hungarian company and banks ?

https://www2.deloitte.com/content/d...ments/Tax/dttl-tax-hungaryhighlights-2018.pdf

 

[UScorp]

Hi you can form a Kft without depositing the share capital. Company is formed in a couple of days incl the VAT nr. Banking might be a bit complicated as the Director/UBO needs to appear in person at the bank ( or remote with EMI). Tax rates are correct

 

[Min Park]

Hi you can form a Kft without depositing the share capital. Company is formed in a couple of days incl the VAT nr. Banking might be a bit complicated as the Director/UBO needs to appear in person at the bank ( or remote with EMI). Tax rates are correct

Great!
What are the cost for this setup?
Do you have a local law firm to recommend ?
Have no problem to go personal to bank.

 

[UScorp]

PM me

 

[Macky]

Think twice before you establish Kft in Hungary.

1. There is an additional profit witholding 16% tax for you as an company owner without a domicile in Hungary that you must pay to Hungarian tax office when you cash out your profit.
2. Another big problem is VAT registration and 27% VAT which is the highest in EU.
3. Overall the tax system in Hungary is very complex and political system unstable.

BTW the setup costs are around 1.500€

 

[Min Park]

1. Can you send me link about that? didn't so any info about that.
2. No problem. customers isn't from EU region.
3. Taking local accounting services.

 

[Macky]

Just google this:
hungary kft dividends witholding tax for foreigners deloitte.com

 

[UScorp]

correct but please read the paper in full esp regarding DTA's https://www2.deloitte.com/content/d...ments/Tax/dttl-tax-hungaryhighlights-2018.pdf