Is Hungary a civil law or common law country?

Hungary is a civil law country, meaning its legal system is based on codified statutes and comprehensive legal codes rather than judicial precedent. Rooted in the continental European legal tradition, Hungary’s laws are primarily derived from its Constitution, national legislation, and EU regulations, with courts tasked with applying and interpreting the law rather than creating it.

How can I find a reputable English-speaking lawyer in Hungary?

To find a reputable English-speaking lawyer in Hungary, many expats and businesses turn to bar association directories, embassy-recommended legal lists, or global networks like Global Law Experts, which connect clients with vetted professionals. These lawyers, often specializing in corporate, immigration, or real estate law, provide clear communication and reliable representation tailored to international needs.

How can a foreigner get a residence permit in Hungary?

To find a reputable English-speaking lawyer in Hungary, many expats and businesses turn to bar association directories, embassy-recommended legal lists, or global networks like Global Law Experts, which connect clients with vetted professionals. These lawyers, often specializing in corporate, immigration, or real estate law, provide clear communication and reliable representation tailored to international needs.

Does Hungary have a "Golden Visa" or residency by investment program?

Hungary does not currently offer a traditional “Golden Visa” but introduced a Guest Investor Program in 2024, allowing foreigners to obtain residency by making qualifying investments, such as purchasing government bonds, investing in real estate funds, or supporting national projects. This program provides long-term residence rights and an eventual path toward permanent residency.

Can a foreigner buy property in Hungary?

Yes, foreigners can buy property in Hungary. EU/EEA/Swiss citizens can purchase real estate freely, while non-EU citizens need a permit from the local government (usually processed in a few weeks for a fee). Agricultural land is restricted. All transactions must be handled through a local lawyer, who registers the purchase with the Land Registry.

What is a Kft. (Limited Liability Company) and how do you set one up in Hungary?

A Kft. (Korlátolt Felelősségű Társaság) is Hungary’s most common business form, similar to a limited liability company. It requires a minimum share capital of HUF 3 million, one or more owners, and registration with the Hungarian Court of Registry. Setup involves drafting articles of association, opening a bank account, depositing capital, and registering for tax. A local lawyer must oversee the process.

What is the corporate tax rate in Hungary?

Hungary has a flat corporate tax rate of 9%, the lowest in the EU. In addition, businesses may pay a local business tax of up to 2%, making the effective rate around 11%. Large multinational groups with revenues above €750 million are subject to the OECD global minimum tax rules, ensuring an effective tax rate of at least 15% through top-up taxation.

How can a foreigner start a business in Hungary?

A foreigner can start a business in Hungary by registering a company, most commonly a Kft. (limited liability company), through the Court of Registration. The process requires a Hungarian address, articles of association, a local bank account, and a tax number. Legal representation by a Hungarian lawyer is mandatory, and registration is typically completed within a few business days.

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Hungary FAQ

Hungary has a civil law system, rooted in the Germanic legal tradition, where codified statutes are the primary source of law. Courts interpret and apply these codes rather than create law through precedent, unlike common law systems. The Constitution, statutory acts, and EU regulations govern Hungary’s legal framework, and judicial decisions do not carry binding precedent in the same way as common law.

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