Personal income tax and VAT were introduced into the Hungarian tax system in 1988. This was a first step in a long process of tax reform. The next major step, undertaken in 1991, was the modernization of the corporate income tax system. In 1993, the VAT legislation was further modified to conform, at least in principle, to the VAT systems used in the European Union. 1995 witnessed the introduction of…
In order to harmonize the national law with the respective EU regulations as well as to establish a modern and comprehensive regulation of business entities, Hungary implemented substantial changes to its corporate law in 2013. The new Hungarian Civil Code (Act V of 2013 on the Civil Code) came into effect on 15 March 2014 that incorporates the fundamental regulations and obligatory rules for all economic entities. The Act V…
Hungary is a member of the OECD and the NATO, part of the European Union’s internal market and the Schengen Area. Hungary became a full member of the European Union on 1 May 2004. Ten arguments why Hungary is the suitable investment location in Central Europe: 1. Great location in the heart of Europe 2. Dynamic economic growth 3. Business-friendly environment 4. Membership in the European Union and NATO 5.…
Hungary is still considered as an attractive location for foreign investors. Buying a property may be the safest investment with an excellent return. Based on the report of Eurostat, the purchase prices of properties in the EU grew 4%, in the euro zone with 3% from January to March 2016 in an annual comparison. The highest growth was however produced by Hungary in January and March 2016, the purchase prices…
Foundations are legal persons set up to pursue the long-term objective defined in the charter document. The founder shall define in the charter document the funds made available to the foundation and the organizational structure of the foundation. Therefore, the objective of the found doesn’t has to serve general interests, but –based on the Hungarian judicial custom -, the objective has to enable a persistent operation, that lasts longer than…
The rules of the land acquisition in Hungary are depending on the citizenship of the purchaser and the kind of the property. Non-citizens typically need to fulfil additional obligations to acquire the ownership of properties. According to the regulation, non citizens are natural people, they are not the citizens of a member state of the European Union, of the European Economic Area or an other country, which is party of…
When people hear the word crime or fellony, probably come the most serious crimes in their minds, like homicide or rape. However, there exist also such actions in the law, which cause not so significant damage to the society, altough they are also apostrophised as criminal acts. These crimes represent usually the lowest level of criminal offenses, for example the misdemeanor of simple battery, defamation, slander, public nuisance or vandalism.…
A pecuniary claim can have not only civil law relations, but also criminal consequences. In most cases it is simpler and more cost-effective, if we try to assert our claim within the frame of a criminal procedure. The means to do that is the recovery of the civil claim. Using this method we have a good chance to avoid a very long and expensive procedure. I. The term of a…
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According to the statistics of the German-Hungarian chamber of commerce and industry, it is quite obvious that in the last decades the business relationship has immensely strengthened between Germany and Hungary. Introduction From 2000 until 2014 the import between the two countries has grown from 10.000 million euros to approximately 19.000 million euros as well as the export which has increased from 10.000 million euros to 22.000 million euros (source:…
