In the 2026 European tax landscape, the Hungarian KFT confirms itself as one of the most efficient corporate structures available to Italian entrepreneurs. This is not due to a regulatory loophole, but for a simple reason: Hungary has deliberately chosen to attract capital and businesses with a competitive, stable, and fully EU-compliant tax system.
What is a KFT and Why is it Relevant in 2026
The KFT (Korlátolt Felelősségű Társaság) is the Hungarian equivalent of the Italian SRL (limited liability company). It is a limited liability company, fully recognized throughout the European Union, with a solid legal structure and exceptionally advantageous taxation. In 2026, with increasing tax pressure in many European countries, the KFT represents a concrete and legal solution.
The KFT Tax Structure: Key Figures
- Corporate Income Tax (CIT): 9% flat — the lowest in the EU
- Standard VAT: 27% (but with exemptions for many B2B categories)
- Withholding tax on dividends: 0% for non-resident shareholders in Hungary (with proper structuring)
- Social security contributions: significantly lower than in Italy
How it Works in Practice
An Italian entrepreneur establishes a KFT in Hungary. The company conducts real business activities — it has a registered office, a bank account, and regular accounting. Profits are taxed at 9%. Dividends are distributed at an optimized rate. All this is done in full compliance with Italian, Hungarian, and European regulations. The key is economic substance: the KFT must be a real structure, not a shell company.
Compliance First
Elevate Advisory Group does not sell shortcuts. It builds solid, compliant, and defensible structures. Every KFT we establish is designed to withstand any tax audit, both in Italy and Hungary. Compliance is not an option — it is the foundation of everything.
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