For UK founders · 100% remote
Open a Hungarian company from the UK — your EU base
After Brexit, a UK company sits outside the EU single market and EU VAT area. A Hungarian Kft gives you a real EU entity with an EU VAT number and full market access — and a flat 9% corporate tax, the lowest in the EU. Set up remotely, no flight required.
- EU/EEA company with an EU VAT number — sell into the EU as an insider
- 9% corporate tax — the lowest in the EU
- UK resident can be sole owner & director
- Sign remotely by power of attorney · lawyer coordinated for you
What's included
- Done-for-you Kft incorporation, fully remote (PoA)
- Coordination of the mandatory Hungarian lawyer
- Registered seat (székhely) address in Hungary
- EU VAT registration for EU-wide trade
- Bank account introduction
- Monthly accounting in English
● The post-Brexit angle
An EU foothold for UK businesses
Back inside the EU
A Hungarian Kft trades inside the single market with an EU VAT number — no third-country friction on EU B2B sales, and a credible in-EU presence for EU clients and marketplaces.
9% corporate tax
Hungary's flat 9% corporate tax is the lowest in the EU — attractive for profitable, EU-facing trade routed through your EU entity.
Runs alongside your Ltd
Keep your UK Ltd for UK business and use the Kft for the EU. You stay sole owner and director from the UK — no EU residence needed.
How it works from the UK
From London (or anywhere in the UK) to a registered Kft
Hungary has no DIY incorporation route — a lawyer (ügyvéd) must countersign and electronically file the documents. We coordinate that lawyer for you, and you sign remotely.
1. Consultation
We agree on name, activity, managing director and capital, and confirm the Kft is the right entity for your EU plans.
2. Sign by power of attorney
We prepare the articles; a Hungarian lawyer countersigns. You sign remotely by PoA — no travel from the UK.
3. Filing & EU VAT
The lawyer files electronically; registration usually takes 1–5 business days. We then arrange EU VAT, bank and accounting in English.
The UK–HU treaty after Brexit
The treaty — not an EU directive — now carries your EU flows
Before Brexit, a UK parent relied on the EU Parent-Subsidiary and Interest & Royalties Directives to move money across the EU withholding-free. Those directives no longer apply to the UK. What still applies is the 2011 UK–Hungary double-tax treaty (in force 28 December 2011), and for Hungary it does the same job:
| Payment out of Hungary | Treaty cap (UK↔HU) | Hungarian domestic rate |
|---|---|---|
| Dividends | 0% direct-investment · 10% portfolio · 15% REIT | 0% to a company · 15% to an individual |
| Interest | 0% | 0% to a company · 15% to an individual |
| Royalties | 0% | 0% to a company · 15% to an individual |
Because Hungary charges no domestic withholding on payments to a foreign company, a UK Ltd can draw dividends, interest and royalties from its Hungarian Kft essentially withholding-free — the treaty simply guarantees the ceiling and resolves residency by place of effective management if both sides claim it.
The UK-resident reality
UK CFC rules and non-EU status — what to plan for
UK Controlled Foreign Company rules. A Hungarian Kft controlled by UK persons is a CFC under TIOPA 2010, Part 9A. If profits are artificially diverted from the UK, they can be apportioned back to the UK company and charged at the UK corporation-tax rate (currently 25%). Hungary's 9% rate is well below the level that lets a subsidiary rely on the low-profits or tax-exemption gateways automatically, so the entity has to earn its keep: real trade, real people, real decisions in Hungary rather than a redirected UK profit stream. Where the Kft runs a genuine local business, the CFC charge generally does not apply.
Non-EU status is the point, not a problem. Since the UK sits outside the EU customs union and VAT area, EU customers, marketplaces and B2B clients increasingly want an in-EU supplier with an EU VAT number. That is precisely what the Kft provides, running in parallel with your UK Ltd — the Ltd keeps UK trade, the Kft handles EU trade. See the full 9% tax breakdown for how the Hungarian side is taxed.
- Give the Kft genuine substance to stay outside UK CFC apportionment
- Use it as your EU-VAT-registered supplier for EU marketplaces and B2B
- Keep the UK Ltd for UK business — the two run side by side
A UK use case
A UK D2C brand that needs an EU entity to keep selling into the bloc
A UK-based consumer brand keeps losing EU customers to import VAT and customs friction. It sets up a Hungarian Kft as its EU trading company, holds EU stock in the EU, and invoices EU buyers as an EU supplier.
On €300,000 of EU-routed profit, the Kft pays corporate tax at 9% — about €27,000 — plus local business tax (HIPA) up to 2%. The UK Ltd keeps its domestic business at UK rates. Dividends the Kft pays up to the Ltd leave Hungary at 0% withholding and are covered by the treaty's 0% direct-investment rate; the UK then taxes them under its own dividend and participation rules with credit relief. The commercial win — being an EU insider again — is usually worth more than the headline rate.
Banking: UK-resident directors are standard for Hungarian banks and EU EMIs; onboarding is remote after KYC, and we prepare the pack. Larger groups sometimes add a Hungarian holding company. Ready to start? See how we form the company.
Opening a Hungarian company from the UK — FAQ
Why do UK founders need a Hungarian company for EU market access after Brexit?
Since Brexit, a UK (Ltd) company is outside the EU single market and the EU VAT area, which adds customs, import VAT and registration friction when selling into the EU. A Hungarian Kft is a genuine EU/EEA company with an EU VAT number and full single-market access — useful for EU B2B sales, EU marketplaces and EU clients who prefer an in-EU supplier. It runs in parallel with your UK company.
Can a UK resident be the director of the Hungarian company?
Yes. A UK resident (and non-EU national) can be the managing director and 100% owner of a Hungarian Kft. There is no requirement to be an EU citizen or resident to own or direct the company. You appoint us and the lawyer by power of attorney, so you can do everything from the UK.
Do I have to fly to Hungary to set it up?
No. The whole incorporation is handled remotely. Hungarian law requires a lawyer (ügyvéd) to countersign and electronically file the documents — we coordinate that lawyer, and you sign by power of attorney (PoA). Registration typically takes 1–5 business days.
What tax will the Hungarian company pay versus the UK?
Hungarian corporate tax (TAO) is a flat 9% — the lowest in the EU. Be aware Hungary uses the forint (HUF), VAT (ÁFA) is 27% and there is a local business tax (HIPA) up to 2%. How profits in the UK vs Hungary are taxed depends on your residence and where the company is managed — this is general information, not tax advice; confirm with a UK adviser.
After Brexit, does the UK–Hungary tax treaty still protect my payments?
Yes. The EU Parent-Subsidiary and Interest & Royalties Directives no longer apply to the UK, but the 2011 UK–Hungary double-tax treaty (in force since 28 December 2011) still does. It caps dividends at 0% for direct-investment corporate holdings and pension schemes, 10% for portfolio dividends (15% for certain REIT/property distributions), and sets interest and royalties at 0%. Hungary also charges no domestic withholding on payments to a foreign company, so most flows to a UK company are protected either way. Source: GOV.UK — Hungary tax treaties.
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