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Hungary

Hungary is a parliamentary republic. Following the collapse of the communist system and restoration of full sovereignty in 1989, the legal and economic system was radically reformed. The country joined the European Union on 1 May 2004.

The population is just over 10 million. The capital city is Budapest, which is also the largest city with around 2 million inhabitants.

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  • The new Company Act is a balance between the traditional German-Austrian-type legal traditions and the Anglo-Saxon corporate solutions.
  • The new Company Registration Act provides very quick and effective e-registration solutions.
  • With effect 1 January 2010, there are important changes in the international tax planning elements of the Hungarian corporate taxation regime. Recent measures: exemption of capital gains; the new CFC regime shortened the ‘blacklist’.

1. Introduction

a. History and background

Hungary is a parliamentary republic. Following the collapse of the communist system and restoration of full sovereignty in 1989, the legal and economic system was radically reformed. The country joined the European Union on 1 May 2004.

The population is just over 10 million. The capital city is Budapest, which is also the largest city with around 2 million inhabitants.

The currency of Hungary is the Forint (HUF). The current exchange rate to the EUR is 265 and 185 to the USD. The eventual adoption of the euro is very unlikely before 2012.

b. Legal system

Hungary is a civil law jurisdiction with German and Austrian influences predominating.

Editorial board
Gabor Szabo
Dr Gabor B Szabo & Partners, Attorneys at Law, Budapest, Hungary

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