Note: Customer identifying data has been modified to protect privacy. The case is real and representative of a recurring type among our customers.
The Context: A Consultant with a Tax Problem
Marco (fictitious name) is a 38-year-old digital marketing consultant from Milan. In 2024, he invoiced approximately 180,000 euros annually through his Italian Srl, with clients primarily in Italy, Germany, and Switzerland. His total tax burden — including IRES, IRAP, and contributions — exceeded 30% of his profit.
After reading about Italian entrepreneurs operating from Hungary with a 9% flat tax, he contacted us to understand if it was a viable solution for his situation.
The Initial Assessment
The first free consultation allowed us to analyze three fundamental aspects:
- Economic substance: Marco was already working remotely and had the flexibility to operate from Budapest for at least 3-4 months a year.
- Client structure: All his clients were businesses (B2B), which simplified intra-community VAT management.
- Risk of foreign incorporation: With a local Hungarian director and strategic decisions made in Budapest, the risk was manageable.
The conclusion: the structure was feasible and advantageous.
The Chosen Structure
We recommended a two-phase structure:
Phase 1: Establishment of the Hungarian KFT
Opening a new KFT in Budapest with:
- Share capital: 3,000,000 HUF (approx. 7,500 EUR)
- Local Hungarian director appointed by us
- Registered office in Budapest's District VI
- Bank account with OTP Bank
Phase 2: Contract Reorganization
Contracts with German and Swiss clients were transferred to the Hungarian KFT. Italian clients initially remained with the Italian Srl, with a gradual migration plan.
Timelines
- Week 1-2: Document collection, notarial power of attorney, drafting of articles of association
- Week 3: KFT registration with the Company Registry (2 working days)
- Week 4: OTP bank account opening
- Week 5-6: Transfer of foreign client contracts, accounting setup
Total: 6 weeks from initial consultation to full operability.
Tax Savings
| Item | 🇮🇹 Italian Srl | 🇭🇺 Hungarian KFT |
|---|---|---|
| Annual profit | €120,000 | €120,000 |
| Corporate tax | €28,800 (24%) | €10,800 (9%) |
| IRAP / HIPA | €4,680 (3.9%) | €2,400 (2%) |
| Total taxes | €33,480 | €13,200 |
Annual savings: approx. €20,000 — added every year, legally, within the EU regulatory framework.
Lessons Learned
After 18 months of operation, Marco shared his thoughts with us:
- Economic substance is fundamental: he spends 4 months a year in Budapest, attends in-person meetings, and maintains an operational office at the registered address
- Hungarian accounting is not complicated: with our support, he receives a monthly report in Italian and has never had to learn Hungarian
- Clients had no problems: invoicing from a Hungarian EU company is perfectly normal for German and Swiss clients
- The cost of the service pays for itself in 3 weeks: the annual tax savings largely cover the costs of establishment and management
Is Your Situation Similar?
Every case is different. The right structure depends on your turnover volume, client type, geographical flexibility, and your Italian tax situation.
The first step is a free consultation with our team: we analyze your specific situation and tell you honestly if the Hungarian structure is right for you.
→ Book your free consultation
→ Complete guide to KFT formation
→ Comparative tax analysis Italy vs. Hungary 2026
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