The tax system in Hungary for 2024 is the best in terms of income tax and foreign corporate tax. This makes Hungary an attractive country for many startup investment companies looking to enter the European market. At the beginning of the year, Hungary announced the reintroduction of the residency by investment program, which will begin next June. This program has the advantage of adding parents a distinctive point to which the income tax advantage is added so that these reasons are sufficient and convincing to start an investment and a new life for the investor and his family.
Types of Tax System in Hungary for 2024:
Corporate Income Tax:
Hungary has the lowest corporate income tax rate in the European Union at 9%. This rate is fixed for both local and foreign companies. With this competitive rate, Hungary aims to boost commercial investment, positioning itself as a key player in international business operations and one of the most competitive investment countries in the EU.
Value Added Tax (VAT):
Or sales tax is higher in the Tax System in Hungary for 2024 compared to income tax. The VAT rate is 27%, one of the highest in the EU. However, Hungarian authorities apply reduced rates on many goods and services like pharmaceutical products and books. Additionally, certain categories, such as educational and medical services, are fully exempt from VAT.
Personal Income Tax:
A flat rate of 15% applies to all income levels, making it one of Europe’s lowest and simplest tax rates.
Property Tax:
Property tax varies based on the location, type, and size. The primary criterion for the property tax rate is the size, and it is considered moderate according to the Tax System in Hungary for 2024.
Social Security Tax:
both employees and business owners pay social security contributions. It is invested in funding retirees, healthcare, and various governmental services. The total rate is 33%, divided between employees (15.5%) and employers (17.5%).
Taxes on Foreign Companies:
To attract many international investment companies, the Tax System in Hungary for 2024 treats foreign companies as local ones. They are treated like any Hungarian local company. Additionally, Hungarian authorities strive to reduce double taxation, which is typically imposed on companies in some countries. In other words, the Hungarian government aims to exempt foreign investors from paying profit taxes in Hungary and the company’s home country.
Investment Incentives for Development:
These aim to support development projects in economics, scientific research, and energy projects, offering tax incentives to promote innovation and technological advancement in Hungary. There are also tax incentives for foreign film production and advertising projects.
Withholding Tax:
This is also one of the types of Tax System in Hungary for 2024, applied to non-residents on specific categories like interest, dividends, and rents. The withholding tax rate is 15% but may be reduced under double taxation agreements.
The tax system in Hungary for 2024 stands out with its low-income tax and foreign corporate tax rates. Despite the high VAT, the tax exemptions on educational and health services are notable advantages. Additionally, investors can benefit from double taxation relief for their investment projects in Hungary.
Istanbul Ethnosports Festival
The Ethnosports Culture Festival, which offers visitors a chance to watch ancient sports from around the world and get a taste of different cultures, began in Istanbul yesterday.
Study and Living in Albania
In this article, we are going to explain in short about studying and living in Albania the types of higher education in Albania, the tuition fees and living expenses in Albania
What Languages Are Spoken in Albania?
The spoken languages in Albania:
Albania is an ethnically homogeneous country with a vast majority of the population speaking the Albanian language. Minorities in the country speak their own native languages like Greek, Macedonian, Romani, and others. Italian and English are the most popular foreign languages spoken by Albanians.
12 Fun & Interesting Facts About Albania
Here are some fun & interesting facts about Albania:
In the evenings, the locals like to walk. But it’s not just a walk, it’s an official evening walk where every resident comes out to stretch their legs and catch up with their neighbors. Everyone gathers at various places, walking and talking until nightfall.
Agriculture, Forestry, and Fishing in Albania
Agriculture is an essential sector in Albania. One of the earliest agricultural lands in Europe has been found in southeastern Albania.
The former governments allocated substantial resources to the development of agriculture. Large-scale programs of land reclamation, soil improvement, and irrigation, as well as increased use of fertilizers, all contributed to a significant expansion of agricultural production. Later, agriculture has registered annual growth during the latest periods.