The Brexit transition period has now come to a close, having ended on 31st December 2020. The United Kingdom is therefore no longer a part of the European Union and the European Single Market.
This has brought with it a whole new set of circumstances for UK companies. What the end of the transition period means is that a large number of UK companies no longer have unlimited access to the common market as they previously had.
As all UK registered companies have lost their EU VAT number, which was one of the largest economic impacts of the UK withdrawing from Europe. As a result, such companies are now seeking solutions to maintain their business operations with the European Union. However, this does not need to be an obstacle for you or your company. Here you will discover how you can access the European Market and continue trading within Europe despite the impacts of Brexit, effortlessly.
Get unlimited access to the European Market
One of the simplest ways to get unlimited access to the European Common Market, to continue to trade freely with European countries, and to easily obtain an EU VAT number, is through European company formation. As the new company will have a valid EU VAT number and unlimited access to the European Market.
Operate with the lowest corporate tax
Avoiding large sums in corporate tax might be one of the benefits of the European company formation, as Hungary is located in the European Union and the corporate tax rate is just 9%. This means you only have to pay 9% corporate tax after the profit of the company. When compared to other countries such as the United Kingdom, whose corporate tax rate is 19% and is set to increase to 25%, Hungary’s rate is very favourable.
What this means is that despite the huge impact Brexit has had on UK registered companies, there are now golden opportunities to reap the rewards of lower corporate tax rates. Building a European company based in the centre of Europe and operating with low tax rates is a clear benefit, giving your company more opportunities.
One thing to also keep in mind is that the process of company formation in Hungary, is very fast and simple as the incorporation takes only some days. And you will even be able to start the company remotely, meaning that no travelling would be required when setting it up.
So, if you would like to maintain continuous access to the European Common Market, and you would benefit from low corporate taxes, it is time to think about moving your company to Hungary.
Travel freely within the EU
Aside from the added perks for your business, you can benefit in other ways from owning a European company in Hungary and get European residency by investment.
In simple terms, this means that setting up a company in Hungary can open the doors to permanent European residence and you can get a residence permit and obtain a Hungarian passport.
As stated by the Global Passport Index, the Hungarian passport is one of the strongest in the world, ranking 5th. With a Hungarian passport, you will be able to enter 134 countries across the world without a VISA. When compared with a German passport, for instance, which similarly lets you enter 137 countries around the world VISA-free, the advantages of a Hungarian passport are clear to see.