Dividends in Hungary

[FRANCO]

Hi,
To be able to do business with European companies (IT domain), I think to let my Lebanese company creates a company in Hungaria. I know taxes are just 9% on the benefits, however I am not sure regarding dividends. I found the table below on Deloitte webtire:

View attachment 4579

Seems following this table that after the hungarian company pays 9% on its benefits, the rest can be paid to my Lebanese company as dividends with 0% taxes. Of course the Lebanese company will have to pay taxes in Lebanon.

Questions:
- Anyone can confirm the table above?
- Is my understanding regarding dividends explained above correct?
- Will the hungarian company will be able to open a bank account in Hungary without any manager in this country?

Many thanks for your help in advance.
Reagrds

With the table:

Attachments​

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  table.webp
  23.3 KB · Views: 111

 

[Marzio]

FRANCO said:
Anyone can confirm the table above?
Click to expand...

Yes, there are no whitholding taxes for dividends paid to a non resident company

FRANCO said:
Is my understanding regarding dividends explained above correct?
Click to expand...

Yes but you don't pay only 9%, on top of that, depending on where the legal seat of your business will be in Hungary, you could pay up tp 2% more. It's basically a local tax. In Budapest it's 2%, in other areas it could be 0%

FRANCO said:
- Will the hungarian company will be able to open a bank account in Hungary without any manager in this country?
Click to expand...

Unlikely.

 

[CyprusLawyer101]

Bank account may be possible with a non resident director as the legislation does not impose any restriction on appointing non resident directors. Ask a local bank to get the solid answer.

 

[Marzio]

CyprusLawyer101 said:
Bank account may be possible with a non resident director as the legislation does not impose any restriction on appointing non resident directors
Click to expand...

That could be possible for a HU holding, do you think it could be possibile with an operating company too?

 

[CyprusLawyer101]

Marzio said:
That could be possible for a HU holding, do you think it could be possibile with an operating company too?
Click to expand...

Yes it could be - but only the local bank can give you the answer

 

[FRANCO]

Hi Marzio,
Do you have already a company in Hungary?

 

[FRANCO]

Hi,
Anyone who can help creating a company in Hungary? Remains the question of creating an account in a real bank in Hungaria. Anyone could help on this?

 

[Marzio]

FRANCO said:
Anyone who can help creating a company in Hungary? Remains the question of creating an account in a real bank in Hungaria. Anyone could help on this?
Click to expand...

@gnud formed a company in HU some time ago.

If i remember correctly he said the process of opening the bank was really bureaucratic because bank was requesting a document he didn't have and took some time.

Reach out to him.

 

[FRANCO]

I wanted a bit more details;