The standard VAT rate is currently 27 per cent. Reduced rates are applicable for hotels and basic food - 18 per cent and for books and medicines - 5 per cent.

All businesses intending to operate in Hungary need to register the company and obtain a tax identification number. Capital gains are part of the corporate tax base and are taxed at the standard rate of 9 per cent.

Foreign entrepreneurs may open a branch office in the country. The branch offices are separate legal entities for taxation purposes.