An evolving business field in Hungary
Trading in Hungary is an important part of Hungary’s economy and the percentage of imports and exports is expected to grow in the coming years. It is estimated that Hungary will become the world’s 33rd largest exporter by 2017.
The trade industry offers various options for investments. Foreign entrepreneurs in Hungary who want to open a trade business need to consider the basics in company incorporation and observe the local and international rules and regulations for trade. The experts at our Hungarian law firm can help you open a company that activates in the trade business sector.
Hungary’s balance of trade
Hungary’s biggest export partner is the European Union. The key products exported by the country to other EU members and worldwide are:
– industrial machinery: particularly to Germany;
– office, telecom and electrical equipment;
– road vehicles and transport equipment;
– basic food and food products;
– ores and metals;
– textiles, raw materials and other agricultural products.
In 2015 Hungary managed to record a surplus in trade. The rapid evolution in this business field is expected to help the country evolve into an important exporter in Europe. Apart from the European Union, Russia, the United States and the United Arab Emirates are also key destination markets for Hungarian products.
Opening a trade business in Hungary
Hungary is a member of the European Union and also of the World Trade Organization. This means that the country imposes EU tariff rates, with an average level of 3.6%. Foreign investors in Hungary will need to pay attention to the customs regulations and observe specific requirements for products that may or may not be exported or imported in Hungary.
Business owners must observe the tax regulations in Hungary. Value Added Tax is imposed in Hungary on all goods brought in the country. The standard VAT rate is 27% and lower rates apply for certain categories of goods and services.
Companies operating in the trade business will need to obtain an EORI number (Economic Operator Registration and Identification number) and observe the requirements for import documentation.
You can contact our Hungarian law firm if you have questions about how import and export activities are regulated in Hungary,
You can also contact our experts for various other legal services in Hungary. For instance; our immigration lawyers in Hungary can guide you through the process if you are interested in applying for citizenship in Hungary. A Hungarian passport is one of the most sought-after passports in the world, with visa-free travel to the United States and Canada, and many other countries. If you want to avail yourself of this benefit, you can get help from our lawyers.