Hungary company formation for a gambling business

Hungary company formation at a glance

Entity type

Kft (korlátolt felelősségű társaság, limited liability company); Zrt (private company limited by shares); Nyrt (public); branch (fióktelep) of a foreign company

Governing law

Civil Code, Act V of 2013 (Book Three, legal persons); Act V of 2006 on public company information, company registration and winding-up proceedings (Ctv.)

Registry

Court of Registration (cégbíróság) at the regional court; public data at e-cegjegyzek.hu

Minimum capital

Kft HUF 3,000,000 (at least HUF 100,000 per member); Zrt HUF 5,000,000; Nyrt HUF 20,000,000. Gambling licenses require far more (see below)

Shareholders

Kft: one or more members, individuals or companies of any nationality; Zrt: one or more shareholders

Directors

Kft: one or more managing directors (ügyvezető); Zrt: a board of directors or a sole chief executive. No nationality or residence requirement

Local resident requirement

None for owners or directors, but non-resident members and executives must appoint a Hungarian service-of-process agent (kézbesítési megbízott)

Registered office

Hungarian registered seat (székhely) required; a licensed seat-service provider may be used

Corporate tax

9% flat CIT; local business tax (HIPA) up to 2%; innovation contribution 0.3% for medium and large companies

UBO register

Central beneficial ownership register kept by the tax authority (NAV) under Act XLIII of 2021; not publicly accessible

Accounts/audit

Annual report under the Accounting Act (Act C of 2000), filed electronically by 31 May; audit above the statutory thresholds (indicative: net revenue over HUF 300 million or more than 50 employees)

Time to incorporate

About 1 working day (simplified procedure using the statutory template) to 15 working days (standard), once documents are signed

What the gambling regulator expects of the company

• Gambling is governed by Act XXXIV of 1991 on gambling operations (Szjtv., the Gambling Act), which also covers gambling organized abroad that is accessible from Hungary, and is supervised by the Supervisory Authority for Regulatory Affairs (SZTFH), which took over from the tax authority on 1 October 2021. Gambling advertising is also subject to Act XLVIII of 2008 (the Advertising Act); AML duties follow Act LIII of 2017 and the gambling-specific SZTFH Decrees No. 19/2021 (X. 29.) and No. 4/2021 (X. 21.).
• Betting, including sports betting, is a state monopoly run by Szerencsejáték Zrt., except horse-race betting and betting organized as remote gambling; lotteries are in practice also run by Szerencsejáték Zrt. Casinos operate under concessions won in a state tender (term up to 35 years), card clubs under a license (up to 15 years), and arcade machines need only a notification to the SZTFH. The SZTFH decides within 120 days for remote gambling and 75 days for other gambling.
• Online casino may be organized only by a concession company: only the holder of a Hungarian land-based casino concession can apply for an online casino license. The Act is reported to cap casino concessions at 12 venues, almost all granted, so there is no open route for a new online casino entrant. The CJEU held this link disproportionate in Sporting Odds (C-3/17, 28 February 2018), but the rule remains in force.
• Remote gambling, including online sports betting, has been liberalized for EEA entities since 1 January 2023: an EEA entity may obtain a Hungarian license through a registered Hungarian representative, with statutory capital of HUF 1 billion and a license term of up to seven years. Law-firm and trade sources add at least five years of licensed EEA experience, a Hungarian branch holding the HUF 1 billion, a guarantee of at least HUF 250 million, a HUF 600 million license fee paid upfront, one website per license and a HUF 10 million application fee, and exclude operators that offered unlicensed gambling in the EEA in the previous five years. As of October 2026 no foreign operator holds a remote betting license; the licensed online offering is limited to Szerencsejáték Zrt. and, per some sources, the LVC Diamond group.
• As part of licensing, the SZTFH carries out a gambling-specific customer due diligence on the organizer, renewed every three years, and organizers must report changes to the facts examined at licensing (for example, to the deed of foundation) within 30 days. Applicants are reported to need an IT systems audit certificate from an EEA-registered audit body, and licensed operators must query the national player-protection (exclusion) register.
• Only holders of a valid Hungarian gambling license or concession may advertise gambling. Ads may not target minors or run in print media published primarily for children or young people, and appearing in an ad for gambling offered without an SZTFH license is prohibited: the person appearing and the advertiser can be fined jointly up to ten times the financial advantage gained, and at least HUF 10 million. Against unlicensed sites, the SZTFH orders ISP blocking (several thousand domains), can extend orders to mirror domains and designates prohibited payment accounts that Hungarian payment providers must refuse.
• Developing gambling games does not itself require a Hungarian gambling license, and there is no separate B2B supplier license comparable to Romania's Class II; suppliers are reviewed indirectly through the licensee's system audit and equipment certification. A Hungarian B2B company serving foreign licensees is an ordinary company for tax purposes, but it should not supply unlicensed operators targeting Hungarian players.

Which Hungary entity to use

How to incorporate in Hungary

1. Week 1

   Regulatory check first

   Confirm what the company is for: B2B development or services, a remote betting branch, or a holding. A Hungarian entity does not unlock online casino or a betting license by itself.

2. Week 1

   Structure and lawyer

   Engage a Hungarian lawyer (mandatory for filing); agree members, managing directors, registered seat and service-of-process agent for non-residents.

3. Weeks 1–2

   Documents and signatures

   Lawyer drafts and countersigns the deed of foundation; documents signed abroad are notarized and apostilled or signed at a Hungarian consulate; foreign corporate extracts are translated.

4. Weeks 1–3

   Electronic registration

   Lawyer files with the Court of Registration within 30 days of signing; decision in 1 working day (template) or up to 15 working days (standard). Tax and statistical numbers are issued through the same filing.

5. Weeks 2–6

   Bank and capital

   Open the corporate account (directors usually attend in person), pay in capital, register for VAT and local business tax, report beneficial owners.

6. Month 2 onward

   License route, if any

   For remote betting: register the Hungarian representative, put the HUF 1 billion statutory capital in place (through the branch, on the reported EEA route), then file with the SZTFH, which decides within 120 days. The SZTFH also runs its gambling-specific customer due diligence during licensing.

Documents you will need

• Certified passports and proof of address for members, managing directors and beneficial owners
• Deed of foundation (or articles), countersigned by a Hungarian lawyer
• Registered seat consent or lease (or seat-service contract)
• Service-of-process agent appointment for non-resident members and executives
• Specimen signature of each managing director, countersigned by the lawyer
• Bank certificate or statement on payment of the cash contribution, where required
• For a corporate member: current register extract (not older than 3 months), apostilled, with certified Hungarian translation
• Beneficial ownership declaration and source-of-funds evidence for the bank

Tax

Corporate income tax

9% flat rate on the adjusted accounting profit

Local business tax (HIPA)

Up to 2% (set by each municipality) of net revenue less certain deductible costs; innovation contribution 0.3% for medium and large companies

Withholding tax

No WHT on dividends, interest or royalties paid to foreign companies; dividends to individuals taxed at 15% PIT (Hungarian residents may also owe 13% social contribution tax, capped), subject to treaties

VAT

27% standard rate; gambling services are generally VAT-exempt (EU VAT Directive art. 135(1)(i))

Gambling tax (licensees)

Remote gambling, including online sports betting: 15% of net gaming revenue, payable monthly. Casinos: 30% of net gaming revenue up to HUF 10 billion, then HUF 3 billion plus 10% of the excess; 3% of casino and online casino game tax is earmarked for player protection and charitable purposes. Card rooms: 40% of net gaming revenue; slot machines: HUF 60,000 per machine a year

Global minimum tax

Qualified domestic top-up tax applies to groups with consolidated revenue of €750 million or more

Annual upkeep

Banking and payments

Hungarian banks will open accounts for ordinary Kfts, but directors are usually expected to attend in person and gambling-related activity triggers enhanced due diligence. Payment providers in Hungary are required to refuse transactions to accounts the SZTFH lists as prohibited and to block card payments to unlicensed gambling merchants, so a B2B company must be able to show it does not serve unlicensed operators targeting Hungary. Plan for the account opening to take several weeks.

How we prepare the underwriting file: payments and banking.

Mistakes to avoid

1. Forming a Kft expecting to obtain an online casino license: online casino is tied to land-based casino concessions, not open to new entrants.
2. Underestimating the remote betting entry ticket: HUF 1 billion statutory capital, plus a reported HUF 250 million guarantee, HUF 600 million fee and five years of licensed EEA experience.
3. Supplying, marketing or appearing in ads for operators that target Hungarian players without a Hungarian license: blocking, payment-account bans and advertising fines of at least HUF 10 million follow.
4. Assuming the April 2026 change of government has already opened the market: as of October 2026 no liberalization bill has been published.
5. Running the company from abroad without considering tax residence and permanent-establishment rules where management actually sits.

Hungary compared

Every formation jurisdiction side by side: company formation for gambling licenses. Licenses compared: gambling license jurisdictions. How we work: gambling consulting services.

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