Hungary, a country of opportunities – Offshore
Advantages such as financial stability together with a competitive tax system have made Hungary a very convenient country to conduct business. Discover how these advantages can benefit Latin American entrepreneurs.
With nearly 10 million inhabitants and strategically located in Central Europe, Hungary has become a financial center that offers advantages for foreign investors, especially those from Latin America. The official language is Hungarian, which is the most spoken Uralic language in the world. Hungary has been a member of the EU since 2004.
The capital of the country and the largest city is Budapest, one of the most popular tourist destinations in Europe. Hungary’s rich cultural history includes important contributions to the arts, music, literature, sports, science and technology. In addition, its historical and academic importance makes Hungary a media power in global affairs.
At the same time, Hungary has become a high-income economy and has one of the largest economies in the world by PPP (Purchasing Power Parity or PPP, for its acronym in English), mainly thanks to its social security system, universal medical care and secondary education without tuition fees.
Hungary as a business center
Hungary is a member state of the EU, located in Central Europe, in the heart of the continent. Financial and logistical advantages await Latin American investors, who are always welcome in this country, which is full of opportunities.
From several airports scattered throughout the country, businessmen can reach all European destinations, including Ukraine and Russia. There are also daily air connections with the independent nations of the former Soviet Union and with China.
It is good to know that life in Hungary is much cheaper than in the Western nations of the EU, even if those countries are quite close, such as Vienna, in Austria, which is just over two hours by car from Budapest.
Hungary has many advantages to offer, namely:
- Ideal geographical position in the center of Europe for all the necessary manufacturing when it comes to the provision of services and logistics
- Excellent infrastructure, prefabricated industrial centers, offices and technology parks
- The perfect balance between labor costs and quality
- EU, government and municipal incentives (including non-reimbursable cash grants from EU funds, cash subsidies and tax breaks)
- Economic policy favorable to investment
- Competitive fiscal system
- Financial and fiscal stability
- Success in reducing public debt
Residents of Hungary pay taxes based on their foreign and national income. The income tax rate is 15%, which is among the lowest income taxes in the European Union. In addition, the corporate tax is only 9%, which means that Hungary proudly owns the lowest corporate tax of the EU member countries. Additionally, there is no withholding on outgoing dividends, interest or royalties.
Hungary signed more than 70 double taxation treaties, some of which are vital, as they allow Hungarian citizens to plan their taxes in advance, especially in some low tax jurisdictions, such as the United Arab Emirates.
It is also important to note that Hungary has a wide range of sound and reliable financial institutions. There are 33 banks in the country, both owned by international and local shareholders.