Facts in this handbook are compiled from official sources such as local authorities. Rules change — confirm the current position through the source links or with the authority before making major decisions.
01Overview
- Region
- Europe
- Capital
- Budapest
- Currency
- HUF
- Languages
- Hungarian
- ISO code
- HU / HUN
Jurisdictions
- Hungary — National level; EU law also applies
China's direct investment
- China's 2025 FDI flow
- -0.42 USD 100m
- End-2025 FDI stock
- 9.3 USD 100m
- Flow rank
- Outside top 20
Source：2025 Statistical Bulletin of China's Outward Foreign Direct Investment ↗ · Flow is for calendar 2025; stock is at end-2025. Flow rank is from Table 8 (top 20); other countries from Annex Tables 1–2 (originally USD 10k, converted to USD 100m; one decimal, two below 1). A negative flow means divestment exceeded new investment that year.
Macro indicators such as GDP and population are not included yet; see official statistics such as the World Bank.
02Market Entry
Industries to study: Manufacturing & plant relocationEVs, batteries & energy storage
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
100% foreign ownership generally allowed
- Applies to
- Foreign acquisitions in strategic sectors may need investment screening
- Jurisdiction
- Hungary
- Source
- Hungarian Investment Promotion Agency (HIPA)
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Limited liability company (Kft.)
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- Hungarian Company Information Service
Registration authority
Primary authority for company or commercial registration.
Court of Registration (electronic filing via a lawyer)
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- Hungarian Company Information Service
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
100% foreign ownership generally allowed
- Applies to
- Foreign acquisitions in strategic sectors may need investment screening
- Jurisdiction
- Hungary
- Source
- Hungarian Investment Promotion Agency (HIPA)
Local director / representative
Whether a locally resident director, manager or representative is required.
No resident director requirement
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- Hungarian Company Information Service
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
Lawyer drafts and e-files → Court of Registration → tax number issued → open bank account and pay capital
- Applies to
- No time estimates given
- Jurisdiction
- Hungary
- Source
- Hungarian Company Information ServiceNational Tax and Customs Administration (NAV)
- Cross-check
Outward Investment and Cooperation Guide: Hungary (2025 ed.)consistent
Local registered address
Whether a local registered address or premises is required at incorporation.
A registered seat in Hungary is required
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- Hungarian Company Information Service
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
Beneficial owners must be registered under EU anti-money-laundering rules
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- National Tax and Customs Administration (NAV)
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
9%
- Applies to
- Local business tax and others also apply
- Jurisdiction
- Hungary
- Source
- National Tax and Customs Administration (NAV)
- Cross-check
Outward Investment and Cooperation Guide: Hungary (2025 ed.)consistent
Tax Guide for Chinese Residents Investing in Hungaryconsistent
Corporate tax, VAT and customsconsistent
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
VAT standard rate 27%
- Applies to
- Reduced rates of 5% and 18% also apply
- Jurisdiction
- Hungary
- Source
- National Tax and Customs Administration (NAV)
- Cross-check
Outward Investment and Cooperation Guide: Hungary (2025 ed.)consistent
Tax Guide for Chinese Residents Investing in Hungaryconsistent
Corporate tax, VAT and customsconsistent
Tax authority
Authority responsible for corporate tax registration and filing.
National Tax and Customs Administration (NAV)
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- National Tax and Customs Administration (NAV)
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- Hungary
- Source
- State Taxation Administration (China)
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
Generally no withholding on dividends paid to foreign corporate shareholders
- Applies to
- Payments to individuals have separate rules
- Jurisdiction
- Hungary
- Source
- National Tax and Customs Administration (NAV)
- Cross-check
Tax Guide for Chinese Residents Investing in Hungaryconsistent
05Banking & Payments
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Magyar Nemzeti Bank (central bank and financial supervisor)
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- Magyar Nemzeti Bank
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
No exchange controls
- Applies to
- EU free movement of capital
- Jurisdiction
- Hungary
- Source
- Magyar Nemzeti Bank
- Cross-check
Outward Investment and Cooperation Guide: Hungary (2025 ed.)consistent
Tax Guide for Chinese Residents Investing in Hungaryconsistent
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Residence permit for employment
- Applies to
- Handled by the National Directorate-General for Aliens Policing; for non-EU staff. New guest-worker permits stopped on 6 Jun 2026; the employment residence permit is unaffected
- Jurisdiction
- Hungary
- Source
- National Directorate-General for Aliens Policing (OIF)
- Cross-check
Outward Investment and Cooperation Guide: Hungary (2025 ed.)consistent
Residence and work permitsconsistent
Social security contributions
Main employer social security schemes for local and foreign employees.
Employer social contribution tax plus employee social security contributions
- Applies to
- Collected by NAV
- Jurisdiction
- Hungary
- Source
- National Tax and Customs Administration (NAV)
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
County and city government employment offices
- Applies to
- Registered companies apply to local employment offices for annual foreign-worker permits; residence permits are issued by OIF
- Jurisdiction
- Hungary
- Source
- MOFCOMNational Directorate-General for Aliens Policing (OIF)
- Cross-check
Outward Investment and Cooperation Guide: Hungary (2025 ed.)consistent
07Trade & Customs
Customs authority
Authority for import/export clearance and tariffs.
NAV, applying the EU common customs tariff
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- National Tax and Customs Administration (NAV)
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
EU single market and EU external trade agreements
- Applies to
- Ordinary companies
- Jurisdiction
- Hungary
- Source
- National Tax and Customs Administration (NAV)
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Hungarian Investment Promotion Agency (HIPA)
- Applies to
- Large projects may apply for government grants under EU state-aid rules
- Jurisdiction
- Hungary
- Source
- Hungarian Investment Promotion Agency (HIPA)
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Mainly industrial parks, without park-specific government incentives
- Applies to
- EU customs warehousing and free zones can defer duties and import VAT
- Jurisdiction
- Hungary
- Source
- MOFCOMState Taxation Administration
- Cross-check
Outward Investment and Cooperation Guide: Hungary (2025 ed.)consistent
Tax Guide for Chinese Residents Investing in Hungaryconsistent
09Digital & IP
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
EU GDPR plus Hungary's Information Act
- Applies to
- Overseen by NAIH
- Jurisdiction
- Hungary
- Source
- Hungarian National Authority for Data Protection and Freedom of Information (NAIH)
IP office
Authority for trademark and patent filing and registration.
HIPO
- Applies to
- Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
- Jurisdiction
- Hungary
- Source
- Hungarian Intellectual Property Office (HIPO)
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- Hungary
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Europe, monitored by our sister site Global Risk Monitor.
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Main setup steps in Hungary
- 1Lawyer drafts and e-files
- 2Court of Registration
- 3tax number issued
- 4open bank account and pay capital
No time estimates given
General checklist (setting up a subsidiary)
- Decide model and jurisdiction
- Confirm licences
- Prepare documents
- Incorporate
- Register for tax
- Open bank account
- Obtain operating licences
- Start operations
Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻匈牙利大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.
Local authorities
- Company registrationHungarian Company Information ServiceCompany registration · Accessed 2026-11-12
- TaxNational Tax and Customs Administration (NAV)Corporate tax, VAT and customs · Accessed 2026-11-12
- InvestmentHungarian Investment Promotion Agency (HIPA)Investment promotion · Accessed 2026-11-12
- Financial regulationMagyar Nemzeti BankCentral bank and financial supervision · Accessed 2026-11-12
- LabourNational Directorate-General for Aliens Policing (OIF)Residence and work permits · Accessed 2026-11-12
- LegislationHungarian National Authority for Data Protection and Freedom of Information (NAIH)Data protection (GDPR) · Accessed 2026-11-12
- Company registrationHungarian Intellectual Property Office (HIPO)Trademarks and patents · Accessed 2026-11-12