For Hungarianfounders & HNWIs
HU 9% CIT is the lowest in EU — but stacked SS (approximately 31%), 18% inheritance, KIVA reform churn make Cyprus structurally deeper for founder-equity events. 17-year non-dom + 0% inheritance + 0% CGT on shares.
— The structural argument
Hungarian inheritance tax: 18% general / 9% on residential property, with spouse + lineal descendants exempt. Cyprus inheritance tax: 0% (abolished). For founders with non-traditional heirs or estates with significant wealth, the structural saving is material.
Hungarian dividend PIT 15% + 13% social-contribution tax (capped) ≈ 26% on extraction. Cyprus non-dom 0% SDC for 17 years on dividend receipts. For founders with active dividend extraction, the personal-tax delta is material.
Recent Hungarian VAT, transfer-pricing, and corporate-tax reforms have introduced uncertainty. Cyprus offers stable EU framework, 65+ DTTs, EU directive supplementation — for founders building cross-border tech / SaaS, predictability matters.
Cyprus IP Box on qualifying-IP profit at approximately 3% effective via 80% modified-nexus deduction. Hungary has IP-related incentives but they're narrower. For tech / software / SaaS founders, Cyprus's IP Box is a structural lever Hungary doesn't match.
— Day 0 → Day 90
Hungarian-specific workstream from first call to operational Cyprus structure.
Free 30-min call. We sketch the Cyprus structure, flag any Hungarian KIVA / KSt-side considerations, identify exit-event needs. Hungarian counsel engaged for the Hungarian-side workstream.
Cyprus Ltd formation. Hungarian-side residency-cut analysis (NEM bevallás final return preparation, exit-of-residency documentation).
Cyprus bank account opening. Hungarian SS / health-fund deregistration. Address update with NAV.
Cyprus residence permit (Yellow Slip — EU citizen). Form T.D. 38 non-dom registration. Cyprus TIN.
Hungarian PIT final return for departure year. KIVA / corporate-tax decision: maintain Hungarian KIVA entity vs migrate to Cyprus structure.
First Cyprus dividend (0% SDC under non-dom). Annual cycle locked in: Cyprus IR4 + Hungarian non-resident return for any residual.
— Side-by-side
| Dimension | Staying in Hungary | Cyprus structure |
|---|---|---|
| Headline corporate tax | 9% (lowest in EU) / KIVA 10% | 15% |
| Top personal income tax | 15% flat | 35% top + 50% high-earner exemption |
| Capital gains on shares | 15% + 13% social-contribution (capped) | 0% (only Cyprus-property) |
| Dividends to founder | 15% PIT + 13% social-contribution = approximately 26% | 0% SDC under non-dom (17 yrs) |
| Inheritance tax | 18% general / 9% residential (spouse+lineal exempt) | 0% |
| Combined social contributions | approximately 31% (18.5% emp + 13% employer) | GHS 2.65% capped + SI on insurable up to €70,148 |
| Effective rate on qualifying IP | 9% headline (no comparable IP Box) | approximately 3% via IP Box |
Indicative side-by-side. Your specific position depends on income mix, holdings, and Hungary-side exit-tax mechanics. Engagement-letter analysis required.
— Treaty & legal essentials
Dividends 0/5/15%, interest 10%, royalties 0%. Older treaty; MLI may modify. EU directive supplementation on qualifying corporate-to-corporate flows.
10% on payroll + capital movement basis. Threshold doubling from Dec 2025: 100 employees / HUF 6bn revenue. Hungarian-corporate election; doesn't migrate with personal relocation.
Both EU. Qualifying corporate-to-corporate dividends 0% WHT (≥10% / ≥24 months) between Hungarian and Cyprus subsidiaries.
18% general (9% on residential property). Lineal descendants + spouse fully exempt. Cyprus 0% on all inheritance.
— What we handle end-to-end
— Fixed-fee, transparent
Tax Resident from €1,899 · Relocate & Launch from €4,899 · 60-Day Nomad from €5,899. All + VAT. No "contact us for a quote".
See full relocation pricing— Common questions
— EVERYTHING INCLUDED
If your Cyprus Ltd, residency permit, or Non-Dom declarations are not delivered for any reason within our control, we refund 100% of the professional fee. Government disbursements pass through at cost.
Engagements coordinated with ICPAC-registered Cyprus tax advisers and Cyprus Bar Association member-firm lawyers. MOKAS-aligned under Cyprus AML Law 188(I)/2007. See our editorial standards and disclaimer.
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