Hungarian Watch Winter 2017
Hungarian Watch editions
Hungary introduced the lowest corporate tax rate in the EU
Single-digit tax rate since January 2017
Hungary introduced the lowest corporate tax rate in the EU which will likely give a boost to further Hungarian investment opportunities. In January 2017 Hungary introduced a new flat, corporate tax rate of 9%. This will be the lowest rate among the 28 member states of the EU and also one of the lowest worldwide level, as well.
New game rules in the Hungarian merger control
Be careful in M&A deals
The Hungarian Parliament has recently amended the Competition Act which brought completely new rules to merger control. The aim of the legislation is clearly to make the merger control faster and more flexible. But it also brought uncertainties to the playing field, as it introduces an “investigation threshold” where it is not necessarily clear-cut when a business should ask for clearance. Also, the Hungarian Competition Authority (“HCA”) got the power to conduct dawn raids on companies’ premises even in merger control.
Last-minute chance to join the Hungarian Residency Bond Program
Hungary announces end to the most popular Residency-by-Investment Program
The Hungarian government will stop accepting requests for residency bonds on 31 March 2017. While applications submitted before that date will still be processed, new requests for Hungarian permanent residence permits will not be accepted after the end of March 2017. This the last-minute chance to join one of the most popular residency-by-investment programs in Europe.