Hungarian Company Formation – 100% Absentee Ownership and Tax-Free Capital Gains
Hungarian company formation may not be the first thing that comes to mind when you think of benefiting from overseas incorporation of your business. But the truth of the matter is Hungary offers the foreign business owner many attractive incentives to open a branch office, or simply register your business there. Hungary boasts the economic stability that being a member of the European Union of 47 countries brings, and is a medium sized economy anxious to grow by offering you advantages they hope will make Hungarian company registration desirable to you.
One of the many benefits you will receive when you open a Hungarian company is the very liberal corporate tax rate. Structured correctly, you can expect tax rates for your incorporation or branch in the 10% to 16% range. Trimming your tax liability by 4% to 10% is realistic, and can immediately ramp up the profitability of your business or corporate entity.
Another marvelous of Hungarian company registration is the absentee allowances lent to your company’s directors and shareholders. Many EU countries demand a certain percentage of a company’s shares be held with local directors, whereas Hungary allows for full directorship and executive ownership and to be appointed back home in your native country. This gives you much more control in how you structure your company, and over who you appoint to your business controlling positions.
Incredibly liberal capital gains and dividends tax rates of as low as 0% are also offered, depending on the way in which you incorporate your Hungarian company as well. Obviously, your company designation must be filed in a certain way, and there are many qualifications you must meet, but filing under a Holding Company designation allows that all dividends paid to any resident or non-resident shareholder of that company to be absolutely free from capital gains tax liability.
By now you should begin to see the reasons many businesses are flocking to little Hungary to seek refuge from tax rates and regulations that are claustrophobic and intrusive. When you open a Hungarian company, you benefit from the Hungarian government’s belief that if you create a business and profit from it, as many of those profits should be yours to do with as you see fit. This is not the case in many European countries, and certainly not in the tax and fee-happy United States.
But just as the different types of Hungarian company registration are varied, the level of service you receive from your European company formation specialist vary as well. You will want to look for a firm that employs local attorneys and accountants that live and work in Hungary, and know the day to day business machinations there, and how to best use those to your company’s advantage. Sit down with a Hungarian company specialist today that offers the peace of mind and guaranteed results that only years of successful business formations can bring, and you will find yourself only days away from a Hungarian company registration that will profit you handsomely for years to come.