Hungary is situated in the very centre of Europe bridging Eastern and Western Europe. Since the end of communism in 1989 Hungary has undergone a dramatic transformation from a centrally planned economy to an open, pro-business economy. In 1993 the Hungarian Ministry of Economic Affairs established the Hungarian Investment and Trade Development Agency which provides assistance to companies considering investing in the country, mainly to small and medium sized enterprises and investors.
Hungary joined the EU in 2004 although it hasn’t adopted the Euro and still retains the Hungarian Forint. The Hungarian Constitution guarantees private ownership, right of enterprise and freedom of competition. Regulation is reasonably transparent and deregulation of major former state owned industries is either completed or currently in process. Hungarian financial markets are highly developed and reflect a level of sophistication which is indicative of the fact that Hungary was early reformer in the region.
Hungary was hit hard by the 2008 recession due to its heavy dependence on foreign capital to finance its economy however in 2011 the Hungarian economy showed signs of recovery with a moderate 1.9% GDP growth rate.
Hungary has very strict bank secrecy laws and the Organisation for Economic Cooperation and Development considers the Hungarian Banking system as amongst the healthiest in the region as it is supported by a strong regulatory framework that meets international standards. There are more than 40 international banks operating in the region including BNP Paribas Bank, HSBC, Standard Chartered Bank, Deutsche Bank and ING Bank.
Key benefits of Hungary:
- Hungary has a stable economic and political system
- Hungary is strategically located in close proximity to major European core markets. Its unique position makes it possible to take advantage of the major European trade routes in addition to possessing a sophisticated infrastructure.
- Hungary is a member of the EU, NATO and the OECD and the World Trade Organisation
- A Hungarian KTF Company provides a legitimate tax-efficient solution with corporate taxes being amongst some of the lowest in Europe, between 10% – 19%.
- There is no withholding tax and payment of dividends to any resident or non-resident person are tax free
- Highly educated, multi-lingual local workforce
Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register
Gibraltar is working to implement all EU legislation relating to the 4th Anti Money Laundering Directive into national law, in addition to the current EU legislation on financial supervision and direct taxation, and to this affect, the Government of Gibraltar have established a Central Register of Beneficial Ownership that will be effective from June 26th 2017.
European Commission publishes tax avoidance disclosure directive
The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.
OECD publishes compliance review for all non-compliant jurisdictions
The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.
EU Parliament Committee release findings & recommendations for current offshore taxation measures
A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.
2017 G20 summit: Enforcement of taxation highest priority
The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.
The EC takes action against advocates promoting tax avoidance schemes
The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.
What are the new Beneficial Ownership reporting requirements for BVI companies?
Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.
Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?
Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.