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EuropeEastern EuropeHU

Hungary

AI Agent Legal Status: partial · Autonomy: low

partialAI Regulated
4Score /10

Legal Framework

Hungary is subject to the EU AI Act and GDPR. The Hungarian National Authority for Data Protection and Freedom of Information (NAIH) oversees AI-related data processing. No specific national AI legislation beyond EU requirements.

Key Laws & Regulations

  • EU AI Act
  • GDPR
  • Civil Code (Act V of 2013)

Business Formation

Kft. (Korlátolt Felelősségű Társaság) is the standard limited liability company with HUF 3 million (approximately EUR 7,500) minimum capital. Electronic formation is available.

Tax Implications

Corporate tax rate is 9%, the lowest in the EU. Local business tax of up to 2% may also apply. The low headline rate makes Hungary attractive for profit-booking structures.

Opportunities

EU's lowest corporate tax rate provides clear cost advantage. Competitive labor and operational costs for AI development operations.

Highlights

Lowest corporate tax rate in the EU at 9%. Competitive operational costs. Central European location with good logistics.

Risks & Challenges

EU AI Act compliance required. Political and regulatory unpredictability. Rule of law concerns may affect investor confidence. Currency risk (Hungarian Forint).