Register a Hungarian Holding Company

The Hungarian holding company represents a legal entity that is created for the purpose of holding shares in other companies, and its main role is to create a group of businesses. Our consultants, specialized in company formation in Hungary, can assist foreign businessmen in setting up a local holding.

What is a holding company in Hungary?

Basically, a holding company doesn’t have business activities like producing goods or providing services. Its main responsibility is to hold interest in other businesses and have managerial rights related to the said companies.

Quick Facts
Legal entities used	Limited liability company or the joint stock company.
Incorporation method	The Hungarian holding company is incorporated following the standard incorporation steps prescribed by the national law.
Incorporation time	Minimum 5 working days and up to 15.
Advantages	– asset protection; – favourable taxation system; – the operating companies belonging to the holding do not have to pay dividend tax when making dividend payments to the holding; – centralized management on matters such as accounting, human resources, marketing, etc.
Precautions	The main precautions for a Hungarian holding company can arise from its own complexity (management challenges, ongoing operating costs, etc.).
Shareholding structure	In order for a holding to be considered a holding structure, it needs to own the majority of a company’s shares. This can vary from a large proportion of the company’s shares (it can vary based on the number of shareholders and their participation), to 51% of the shares, which means that the holding has the majority of shares, to up to 100% (the sole owner).
Minimum capital	HUF 3 million (for the limited liability company), HUF 5 million (private joint stock company), HUF 20 million (public joint stock company).
Taxation	The Hungarian holding company is liable to paying the corporate taxes established in Hungary for other company types. However, it benefits from a favourable tax regime, such as the dividend tax exemption, group taxation for corporate taxes, access to the provisions of the double tax treaties signed by Hungary, etc.
Control	The holding exercises control over the companies where it holds the majority of the voting rights (expressed by the percentage of the shares owned in a company).
Accounting and reporting	The holding must complete accounting and reporting formalities as per the rules of the Accounting Act.
Number of double tax treaties	83
The purpose of a holding company	A holding is created with the purpose of owning shares and voting rights in other companies.
Types of holdings	Pure and mixed holding companies.
Financial statement obligations (yes/no)	Yes
Financial statements to prepare at the end of the financial year	Simplified or consolidated annual financial reports (based on the revenue, balance sheet value and number of employees).

What functions can the holding have for the companies it owns?

The holding can have a centralized role for its other companies, in the sense that it can also handle matters such as:

finance;
IT;
payroll;
accounting;
marketing, etc.

How can a holding minimize business risks?

Holdings are ideal structures to minimize risks associated with investments and carrying business activities as, while having a centralized managerial structure, the companies that are part of the group carry out their own business activities independently from each other.

What should I be aware of when registering holding companies in Hungary?

If you plan to open a company in Hungary as a holding company, we invite you to read few of the main matters concerning reporting, taxation and other important matters:

in Hungary, domestic or foreign participations can be seen as announced participations, for the purpose of boosting the interest of foreign investors to set up Hungarian holding companies – such participations have to be reported to the Hungarian Tax Authority in a period of 75 days since they were purchased;
Hungary abolished the participation limit imposed to investors, starting with 1st January 2018;
those who purchase participations in Hungarian holding companies will be exempt from the payment of the corporate income tax charged to capital gains, provided the participation was held for at least 1 year;
if the holding company is involved in purchasing shares if a real estate company based in Hungary, please mind that such shares are taxable and the price is established according to the book value, as of 1st January 2014;
the company will be considered a real estate holding company as long as at least 75% of the assets derive from real estate.

What is the incorporation process for a holding?

The holding is incorporated following the standard procedure for company incorporation in Hungary, given that this company type is registered as one of the corporate entities available in this country.

What legal entities are suitable for a holding company in Hungary?

The holding company can take the form of a limited liability company or a joint stock company.

Are there any capital requirements?

Yes, during the process of company formation in Hungary, investors must deposit at least HUF 3 million as minimum share capital (provided that they opt for the limited liability company). Capital requirements will increase for joint stock companies.

How many shareholders do I need for a holding?

The law states that legal entities in Hungary can be set up by minimum 1 shareholder, therefore the holding can be incorporated by only 1 investor (of course, more investors are allowed).

What types of shareholders are accepted in a holding?

Both individuals and other corporate entities.

Can a holding have full foreign ownership?

Yes. The holding can be set up with 100% foreign ownership.

In the infographic below, you can observe some of the rules you must follow if you want to open a holding in Hungary:

What are the advantages of the Hungarian holding tax regime?

Precisely, the Hungarian holding regime provides the following tax advantages:

the profits realized after selling the subsidiaries are free of taxes;
the profit distributions received from subsidiaries are fully exempt from corporate tax at the level of the holding company;
no withholding tax is levied on the profit distributions made by the holding company to its own shareholders;
moreover, the extensive network of double tax treaties signed by Hungary ensures exemption from paying corporate income tax or any withholding taxes on dividends, interests or royalties or their minimization.

Is the holding liable to the payment of the corporate tax?

Yes. While in some cases, the company can benefit from an exemption on the payment of the corporate tax, when it comes to the company’s taxable profit, the corporate tax will apply at the standard rate (9%, the lowest in the EU).

Do holdings in Hungary need to pay the local business tax?

Hungary applies a local business tax, charged at a rate of up to 2%. Please mind that this tax can also be applied to holdings operating here. Our consultants can provide further information on this type of tax and its applicability.

What is the law applicable to EU holdings?

The main legislation that applies to EU holdings is the Parent – Subsidiary Directive (Council Directive 2011/96/EU).

Below, our team invites you to watch a short video presenting how to incorporate a Hungarian holding company:

If you need Hungarian company formation services tailored for the needs of a holding, do not hesitate to contact us.

Dr. Ádám Tálosi, Attorney at Law · 2 October 2026Dr. Ádám Tálosi studied at the Faculty of Law of the Károli Gáspár University of the Reformed Church.