Hungary expansion strategy
Expand Confidently. Thrive in Hungary.
A tailored Hungarian market entry strategy helps international companies navigate local regulation, tax and employment rules, set up operations quickly and scale across Hungary and the wider Central and Eastern European region. From your first market assessment to your first Hungarian hire, our Budapest team is with you at every step.
Registration of a Hungarian subsidiary (usually a Kft.), branch office or commercial representative office with the Court of Registration, typically within one to five working days once documents are signed, including registered seat, managing directors and compliance setup.
Registration with the National Tax and Customs Administration (NAV) for corporate tax (9%) or KIVA, VAT (27% standard rate) and payroll, local business tax (HIPA) registration with the municipality, NAV Online Invoicing, and on-time annual reports and tax returns.
GDPR compliance under Hungarian implementing law (the Information Act) supervised by the Hungarian data protection authority (NAIH): privacy notices, records of processing, data processing agreements, employee monitoring rules and, where required, data protection officer appointment.
Written employment contracts under the Hungarian Labour Code, employee registration with NAV before work starts, the 2026 minimum wage and guaranteed wage minimum for skilled roles, working time and holiday rules, and work and residence permits for non-EU staff.
Licences and approvals from Hungarian regulators, such as the Central Bank of Hungary (MNB) for financial services, the medicines and health authorities for pharmaceuticals and medical devices, the National Food Chain Safety Office (Nébih) for food, and the media and telecoms authority (NMHH), as well as foreign direct investment (FDI) screening where it applies.
Help opening an account with a Hungarian bank, including HUF and EUR accounts, KYC preparation and UBO reporting.
Bookkeeping by a registered Hungarian accountant under the Accounting Act, VAT returns, payroll, annual reports and transfer pricing documentation for intra-group transactions.
Access to Hungary’s investment incentives, including HIPA cash subsidies for larger projects, the development tax allowance, the R&D super-deduction and the development reserve, to lower the cost of your investment. Eligibility depends on project size, location and conditions set by Hungarian and EU state aid rules.
Why STC
18+ years guiding international businesses into new markets, now including Hungary
We have helped startups, SMEs and established companies enter new markets, covering incorporation, compliance, banking and ongoing advice. With our Budapest office, our partner-led model means you work with senior, bilingual advisers who know the Hungarian market from day one.
- • Hungarian regulatory and tax expertise
- Sector-specific advisory
- • End-to-end execution, from strategy to first hire
Mitigation Summary
Risk
How We Help You Mitigate
Frequent regulatory and tax changes
Hungary amends tax and business laws every year, and a new government took office in May 2026. Monitor announcements, build flexibility into plans and work with local advisers.
Competitive Intensity
Differentiate on service, innovation or a niche; build a local brand; partner with established Hungarian companies or distributors.
Talent Acquisition Challenges
Offer competitive pay and benefits (such as the tax-efficient SZÉP Card), flexible working and a strong employer brand; plan ahead for permits if hiring from outside the EU.
Language and local business culture
Provide Hungarian-language contracts, invoices and customer materials; use bilingual staff or partners for public bodies and local customers.
Currency Risk
If costs are in HUF and revenue in EUR (or the reverse), consider hedging, EUR-denominated contracts or EUR-denominated accounting where appropriate.
Regulatory Non-Compliance
Appoint a responsible person for compliance, set clear procedures (including NAV Online Invoicing and GDPR), and engage advisers for regulated sectors and FDI screening.
Disclaimer: The information on this page is general consultancy information about doing business in Hungary. It is not legal, tax, financial or regulatory advice. Hungarian rules change frequently, so please seek qualified professional advice for your sector and structure before making decisions.
Why Choose Us
Industry Expertise
Multi-sector experience with insight into the challenges each industry faces when entering Hungary.
Tailored Solutions
Market entry plans built around your goals, your sector and Hungarian market conditions.
Global Investor Network
Investors, lenders and partners in Hungary, Central and Eastern Europe, the UK, Ireland and beyond.
End-to-End Support
From market assessment through company setup, hiring and scaling across the region.
Trusted by Businesses Across Three Continents
From startups to multinationals, we have helped clients in Hungary, the UK, Ireland, the EU, North America and beyond set up, expand and stay compliant.
- 18+ Years Experience
- 30+ Satisfied Clients
- 25+ Expert Team
- 4 International offices
- Glasgow
- London
- Dublin
- Budapest
Average Rating
4.9
(30+) Customer reviews
Key Questions
It depends on your business model, sector and goals. Most companies start with a market entry strategy, then set up a Hungarian subsidiary (Kft.) or branch, open a bank account, register for tax and put compliance in place. Some begin with a commercial representative office or a local distributor to test the market.
Usually one to five working days once documents are signed, using electronic registration through a Hungarian attorney. Timing depends on the legal form, whether you use template or bespoke documents, and any sector licences or FDI approval you need.
In practice, yes. It is needed to pay in share capital, pay Hungarian taxes and salaries and receive payments, and your bank also reports your beneficial owners to the UBO register.
Every company receives a tax number from NAV and must choose its corporate tax regime (standard 9% corporate tax or KIVA). VAT status is set at registration, as Hungary has no general registration threshold for companies, and you register for local business tax with your municipality. Employers must register employees with NAV before they start work.
You must keep books under the Hungarian Accounting Act through a registered accountant, report invoices in real time to NAV Online Invoicing, file VAT and payroll returns, and submit your annual report and tax returns, generally by 31 May.
Any business processing personal data in Hungary must comply with the GDPR and the Hungarian Information Act, including privacy notices, processor agreements and internal procedures. The NAIH is the supervisory authority and can impose significant fines.
You need written employment contracts under the Labour Code, employee registration with NAV, at least the minimum wage (HUF 322,800 a month gross in 2026) or the guaranteed wage minimum for roles requiring secondary qualifications, payroll contributions, and work permits for non-EU nationals. Hungary has no separate employer pension scheme obligation: pensions are funded through social security contributions.
Some sectors do, for example MNB authorisation for financial services, health authority approvals for medicines and medical devices, Nébih registration for food businesses, and licences for telecoms, energy and transport. Investments in strategic sectors by non-EU investors may also need FDI screening approval.
Frequent regulatory and tax changes, competition, hiring, language barriers, HUF currency exposure and non-compliance. See the risk table above for how to manage each.
A consultancy with a Budapest team helps you move faster and avoid costly setup mistakes, with one point of contact for structure, tax, compliance, banking, hiring and go-to-market planning, in English and Hungarian.
Monday - Thursday : 9:30 am - 5:30 pm
