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
New licensing regulations for Trusts & Service Providers in Hong Kong
As per new regulations, all Hong Kong businesses providing Trustee Services, including Corporate Service Providers will not be able to operate without a valid trading license after March the 1st 2018. The new scheme is designed to better regulate individuals carrying out services within the financial sphere in Hong Kong and will be overseen and administered by the Hong Kong Companies Registry.
The terms of Hong Kong's new register of significant controllers and what it means for companies
As per new legislation, from March 1st 2018, every company incorporated in Hong Kong will be required to keep and maintain a register of all persons who have significant control of the company. The record must be updated as required and kept at the registered company address, even if there are no persons of significant control.
The pros & cons of European Passport-by-Investment schemes
In a bid to rebuild the dwindling economy in Cyprus shortly after the financial crisis four years ago, the government launched a passport-by-investment program to temp wealthy foreigners with citizenship in exchange for an investment of no less than €2 million into the Cyprus economy.
Using the Cyprus Non-Dom scheme for beneficial tax planning
In an attempt to improve and simplify the Cyprus tax system as well as to remain a highly compliant and attractive jurisdiction, the introduction of the non-domicile (shortened to Non-Dom) scheme aims to give Cyprus a competitive edge over other jurisdictions.
How are Cyprus banks handling the island's high rate of NPLs? Can more be done to combat them?
It is no secret that the Cyprus banking sector is struggling with the overwhelming level of Non-Performing Loans (NPLs), no matter the efforts exerted by the main banks in Cyprus by following conventional banking models to balance their profit/loss reports, NPLs remain to be the proverbial hole in the bucket.
Income tax exemptions for expats living in Cyprus: what are your options?
Situated in the Eastern Mediterranean, the Republic of Cyprus boasts a strategic geographical location at the hub of three continents; Europe, Asia and Africa and a pleasant sunny climate year round.
The UK Persons of Significant Control Register & its impact on companies
The requirement to maintain a register of people with significant influence or control, more commonly known as the PSC register was introduced to mandate all unlisted companies in the UK, including LLPs and dormant companies to maintain a register identifying those with significant control over a company.
Cyprus implements the Hague Convention, legally recognising Trusts as a type of Equitable Law
This year, the Republic of Cyprus ratified The Hague Conventions’ definition of the legislation applicable to trusts and furthering the regulations surrounding their recognition. Cyprus common law now recognises trusts as a unique legal institution under equity.