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  Professional offshore incorporations and offshore banking services since 1996

Company Incorporation
Hungary

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Hungary is a new, undiscovered bridge to tax heaven!

  • 0% withholding tax on dividends!
  • 0% withholding tax on interests!
  • 0% withholding tax on royalties!

    According to the new provisions under the Hungarian Income and Corporation Tax Act, as of January 2006, when paying dividend to any natural or legal person, resident or not resident in Hungary, the withholding tax on dividends is 0%. What is more, the royalties and interests that a company pays qualify as expenditure, and as such, are exempt from withholding tax. These modifications to the Hungarian tax provisions enable this small Central-European country to become an important participant on the European holding market, and with a huge advantage: it is not yet in the focus of the tax authorities. This offers you a very good opportunity to carry on with (or start) your tax optimization plans on a new market, in a more legal and discreet way.

    Some reasons for choosing Hungary
    Compared to the traditional participants of the European holding and tax optimization market, being more discreet is only one of the many advantages that Hungary offers to companies. This country has a perfect geo-strategic location, and is a full-fledged member of the European Union since May 2004. This means that a company registered in Hungary can apply for, and get a European Union Tax-ID, which entitles it to handle its European businesses VAT-free. The Hungarian tax authorities, upon request, issue a certificate that states that the company is subject to Hungarian taxation; this enables the company to profit from the benefits of more than 50 double taxation agreements that Hungary has signed. More over, legal persons can also be a member/shareholder of the company, so there is no reason why an offshore company could not own the shares of the company, guaranteeing both secrecy and the exercise of ownership rights at the same time. No data regarding the beneficial owner will be registered, neither his bank references will be required. There are no currency restrictions; the company is entitled to have any kind of bank accounts in a foreign country. The incorporation, the establishment of a company can be implemented in a relatively short period of time (despite the slightly complicated official procedures), and the company is entitled to start its activities immediately after signing the deed of foundation.

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