Foreigners are allowed to open a trust in Hungary, a structure that is designed for asset management purposes. It must be noted that foreigners do not need to have a residence permit issued by the Hungarian authorities in order to register this type of entity, making it a very attractive option for those seeking to manage their personal property.
Our consultants can explain the incorporation process applicable to a Hungarian trust, the tax obligations arising from it, the responsibilities of the parties involved in a trust and many other matters of importance, therefore, we invite you to address our specialists in company formation in Hungary for extensive information.
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What is a Hungarian trust?
The trust in Hungary refers to a legal structure that has as a main object of activity the management of assets belonging to a private entity (usually, high-net worth individuals). The trust gains legal recognition through a contractual agreement established between the settlor and the trustee, a document that must be submitted with the Hungarian authorities.
The settlor refers to the party that owns the assets, while the trustee is the person who receives the right to manage the respective assets. The latter also obtains ownership rights for the entire assets or for a portion of the assets making the object of the trust, through the ownership transfer made by the settlor.
The settlor is also a beneficiary, which means that he or she will retain the right to own the respective assets, rights granted under the provisions of a trust deed. Our consultants in Hungarian company formation can provide further information on the rights and obligations deriving from this document.
Legislation
Individuals who plan to open a trust in Hungary are advised to observe the current legislation regulating this entity. You can find in the list below the main legal framework applicable to this structure:
- the concept of trust as a legal structure was introduced in 2013, making it a newer type of entity available for company registration in Hungary;
- it is regulated under the Act V of 2013 (the Civil Code), Section 6, 310-330;
- the rules of the Act XV of 2024 apply as well (Act on Trustees);
- trustees must also abide by the rules of the Government Decree no 87/2014 concerning capital obligations (applicable only to professional trustees).
Types of trustees in Hungary
The entity which receives the right to manage the assets of the settlor is the trustee, as mentioned above. The Hungarian legislation stipulates that there are 2 types of trustees – ad hoc and professional trustees, who can be natural persons or legal entities. The 1st category, the ad hoc trustee, is a natural person who has been appointed to manage a single trust.
Those who manage more trusts can only be professional trustees, who have the obligation to be registered under a Hungarian business form (limited companies, branch offices, EEA companies or a Hungarian law firm – those who want to open a Hungarian company for this purpose can receive the necessary support from our team).
Please know that the professional trustee must obtain a license issued by the Hungarian National Bank. The ad hoc trustee does not need a license, but he/she must still inform the institution on the formation of trust in a period of maximum 30 days since the trust deed has been signed.
Acceptable assets
It is advisable to open a trust in Hungary as it is a versatile structure for asset management, given that it can manage a variety of assets, such as: shares, real estate, movable assets, intellectual property, cryptocurrency, bonds and other securities, etc.
We invite you to address us for further information. We can help you open a company in Hungary, a trust, a foundation and other entities regulated under the local law. You can also rely on our team for tax consultancy, accounting, reporting (services offered by our accountants in Hungary).