Cost of Setting Up a Company in Hungary

Published on October 3, 2025 and written by Cyril Jarnias

Hungary, with its strategic position in the heart of Central Europe and its rapidly growing economy, is attracting more and more foreign entrepreneurs looking to establish their companies there. However, before embarking on this entrepreneurial adventure, it’s crucial to fully understand the costs associated with creating and operating a business in this country. This article will guide you through the various financial aspects to consider when setting up your company in Hungary.

Administrative Fees: The First Step of Your Entrepreneurial Adventure

Establishing a company in Hungary involves several administrative procedures, each associated with specific fees. These costs can vary depending on the type of company you choose to create, but here’s a general estimate of the main registration fees:

– Company name reservation: approximately 5,000 HUF ($15) – Notary fees for drafting and authenticating articles of association: between 100,000 and 300,000 HUF ($300-900) – Registration with the commercial court: approximately 50,000 HUF ($150) – Obtaining tax identification number: free – Publication in the Official Gazette: approximately 20,000 HUF ($60)

It’s important to note that these fees may change and it’s recommended to verify current rates with the relevant authorities at the time of your company formation.

Complying with Legal Requirements: A Necessary Investment

Once your company is established, you’ll need to handle various compliance costs to ensure your business meets all Hungarian regulations. These costs include:

– Accounting services: between 50,000 and 200,000 HUF per month ($150-600), depending on your company’s size and complexity – Annual audit (mandatory for certain companies): starting from 500,000 HUF ($1,500) – Tax and social security filings: typically included in accounting fees – Legal fees for compliance: variable, but budget at least 300,000 HUF ($900) annually

These compliance costs are essential to ensure your business operates properly and avoid potential penalties. They can represent a significant portion of your expenses, especially during the first years of operation.

Laying the Groundwork: Initial Investment to Start Your Business

Beyond administrative and compliance fees, you’ll need to plan for initial investment to actually launch your business in Hungary. This investment can vary considerably depending on your industry, but here are some elements to consider:

– Minimum share capital: 3,000,000 HUF (approximately $9,000) for a limited liability company (Kft.) – Office rental: between $10-20 per square meter per month in Budapest business districts – Equipment and furniture: variable budget, but plan at least $5,000-10,000 for a modest startup – Staff recruitment and training: variable costs depending on your needs – Website development and initial marketing: starting from $2,000-5,000

The initial investment is crucial to ensure a good start for your business. It’s recommended to include a safety margin to handle unexpected expenses.

Managing Daily Operations: Anticipating Operational Expenses

Once your business is launched, you’ll need to handle regular operational expenses. Here’s an overview of the main expense categories to anticipate:

– Salaries: the average salary in Hungary is approximately 400,000 HUF gross per month ($1,200), but can vary by sector and skills – Employer social contributions: approximately 13% of gross salary – Rent and utilities: variable by location, but budget between $15-30 per square meter per month for quality offices in Budapest – Professional insurance: starting from 100,000 HUF annually ($300) – Banking fees: approximately 5,000-10,000 HUF per month ($15-30) for a standard business account – Telecommunications and internet: starting from 10,000 HUF per month ($30)

It’s crucial to accurately estimate these operational expenses to establish a realistic budget and ensure your business’s sustainability.

Optimizing Your Expenses: Strategies to Reduce Costs

While establishing and managing a business in Hungary involves unavoidable costs, there are several strategies to optimize your expenses:

1. Take advantage of tax incentives: Hungary offers various tax benefits, including one of Europe’s lowest corporate tax rates (9%). Research available deductions and tax credits in your sector.

2. Choose flexible solutions: Consider coworking or virtual offices to reduce your real estate costs, especially at the beginning of your business.

3. Outsource certain functions: Outsourcing services like accounting or IT can be more economical than hiring full-time staff.

4. Invest in technology: Automating certain processes can reduce your operational costs in the long term.

5. Educate yourself on local specifics: A good understanding of the Hungarian tax and legal system will help you avoid costly mistakes.

Cost optimization is an ongoing process that requires constant monitoring and adaptation to market and regulatory changes.

Establishing a company in Hungary represents a significant investment, but also offers numerous opportunities in a rapidly growing market. By understanding the various associated costs and adopting a strategic approach, you can maximize your chances of success in this country at the heart of Europe.