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
Have the Many Benefits of Offshore Banking Left the Industry Open to Abuse?
The overseas banking industry is a billion-dollar business. Its no surprise that during the last decade, criminals have discovered ways to circumvent and exploit the system, ultimately giving the offshore world a bad reputation. This article looks at the many benefits associated with overseas banking; and how this has left the industry open to abuse.