EV vs KFT 2026 — The 60-Second Read
Egyéni Vállalkozó (EV) opens in one day, costs near zero in setup fees, and — under KATA — pays a flat 50,000 HUF/month up to 18M HUF revenue. But since the 2022 KATA reform, only B2C invoices count; one B2B invoice voids the regime. A KFT takes ~5 days, needs 3M HUF share capital, and pays 9% TAO corporate tax (Europe's lowest) — or 10% KIVA as a consolidated alternative. KFTs offer limited liability: personal assets are protected, where an EV's are not. The crossover point: below 18M HUF B2C-only → EV+KATA wins. Above 18M, or any B2B → KFT wins. NAV's Online Számla e-invoice system applies to both. This guide compares every dimension in detail.
The 2026 Hungarian Legal Form Landscape at a Glance
Hungary offers more legal forms than most EU countries, but for e-commerce sellers the practical universe narrows to two structures and three tax regimes. The chart below summarises the six entities and tax codes covered in this guide — keep it nearby as you read each deep-dive section.
Egyéni Vállalkozó — Hungary's Sole Trader
Regulated by 2009 évi CXV. Law · Opens in 1 day via Ügyfélkapu · Personal liability · ~640,000 active EVs in Hungary 2026
KFT — Korlátolt Felelősségű Társaság
Hungarian limited liability company · Regulated by Ptk. (Civil Code) Book Three · 3M HUF minimum capital · ~320,000 active KFTs
KATA — Flat-Rate Tax for Small Entrepreneurs
50,000 HUF/month flat rate · Covers SZJA + TB + szocho · 18M HUF revenue cap · B2C only since 2022 reform
KIVA — Small Business Tax (Alternative Regime)
10% flat rate on payroll + dividends · Replaces TAO 9% + szocho 13% · 6B HUF revenue cap · Best when payroll is high
TAO — Társasági Adó (Corporate Income Tax)
Flat 9% on profit · Lowest CIT rate in the European Union · Plus 0.5% HIPA local tax · Plus 13% szocho on payroll
NAV — Nemzeti Adó- és Vámhivatal
Hungarian Tax & Customs Authority · Online Számla mandatory real-time e-invoice since 2018 · ÁFA bevallás monthly/quarterly
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1. Egyéni Vállalkozó — Hungary's Sole Trader
What an Egyéni Vállalkozó Is
Egyéni Vállalkozó (EV) — literally "individual entrepreneur" — is Hungary's equivalent of the Polish JDG, the German Einzelunternehmen or the UK sole trader. It is the simplest, fastest and cheapest way for a natural person to do business in Hungary. The legal foundation is Act CXV of 2009 on Sole Proprietorship and Sole Trader Enterprises (2009. évi CXV. törvény), supplemented by the Personal Income Tax Act (1995. évi CXVII. törvény) and the Social Security Contributions Act (2019. évi CXXII. törvény) for TB-járulék obligations.
An EV is not a separate legal person. The entrepreneur and the business are legally identical — meaning full personal liability for business debts, but also that taxation flows directly to the individual's personal income tax return. As of 2026 there are roughly 640,000 active EVs in Hungary, making it by far the most common business form in the country.
How to Register an EV — The 1-Day Process
Registration is fully digital and free, via Ügyfélkapu (or KAÜ — Központi Azonosítási Ügynök). The flow: log in to Ügyfélkapu, complete the EVNY-A registration form (declaring TEÁOR activity codes and tax regime — KATA, Átalányadó or general SZJA), receive a NAV-issued nyilvántartási szám within hours, optionally order an Egyéni Vállalkozói Igazolvány (sole trader card, ~10,000 HUF — useful but not required), and open a business bank account (most Hungarian banks: OTP, K&H, Erste, Raiffeisen — 2–3 working days). End-to-end, an EV can be operationally active within 24–48 hours.
The Three Tax Regimes for an EV
EVs choose one of three personal-income-tax regimes, declared at registration and re-confirmable each January: KATA (Kisadózó Vállalkozók Tételes Adója) — flat 50,000 HUF/month, B2C only since 2022 reform, 18M HUF revenue cap; Átalányadó (Flat-Rate Income Tax) — 15% SZJA on a deemed margin (typically 40% of revenue for resellers) plus TB-járulék; Tételes költségelszámolás (General SZJA) — full bookkeeping, 15% SZJA on actual profit, full deductibility, plus 18.5% TB-járulék + 13% szocho on the chosen base.
EV's Strengths and Weaknesses
Strengths: minimal setup cost, single-tax-rate simplicity under KATA, zero accounting overhead for KATA payers (one annual NAV declaration), immediate operational readiness. For a side-hustle seller at 5–15M HUF/year in B2C marketplace revenue, EV+KATA is unbeatable. Weaknesses: unlimited personal liability (a defective-product claim can reach the entrepreneur's home), the 18M HUF KATA cap, B2C-only restriction since 2022, no legal separation of business and personal finances, lower perceived professionalism among large B2B clients and marketplace category managers.
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2. KFT — Korlátolt Felelősségű Társaság
What a KFT Is
KFT (Korlátolt Felelősségű Társaság) — literally "Company with Limited Liability" — is Hungary's equivalent of the German GmbH, the Polish sp. z o.o., the French SARL or the UK Ltd. It is the dominant corporate structure for serious Hungarian businesses: of ~530,000 incorporated companies, more than 320,000 are KFTs in 2026. The KFT is regulated by Act V of 2013 — the Civil Code (Ptk.) Book Three, which replaced the previous Companies Act. Corporate taxation flows from the Corporate Income Tax Act (Tao. tv., 1996. évi LXXXI. törvény) setting the 9% TAO rate; the optional KIVA regime is governed by the Small Business Tax Act (2012. évi CXLVII. törvény).
Minimum Share Capital and Members
A KFT requires 3,000,000 HUF minimum share capital (törzstőke) — about €7,500 at 2026 exchange rates. This capital is not a fee to the state: it remains on the KFT's balance sheet and is freely usable for working capital, inventory, marketing, payroll or any business purpose immediately after incorporation. It can be contributed in cash, in kind, or as a mix. A KFT can have one to fifty members (tag). Foreign natural persons and foreign legal entities can both be members and managing directors without restriction — making Hungary one of the friendliest EU jurisdictions for non-resident company formation.
How to Form a KFT — The 3–5 Day Process
KFT formation is handled by a Hungarian attorney (ügyvéd). The standard flow: engage a Hungarian attorney (fees typically 50,000–100,000 HUF for a simple e-commerce KFT), draft and sign the Társasági szerződés (articles of association, electronic signature accepted), pay 3M HUF share capital into a temporary attorney trust account, submit to cégbíróság (50,000 HUF court duty, processed in 3–5 working days under the simplified procedure), receive a cégjegyzékszám and NAV-issued adószám automatically, apply for ÁFA + EU VIES, and open a corporate bank account. Total out-of-pocket: roughly 100,000–150,000 HUF (~€250–€400), excluding the 3M HUF capital itself.
KFT's Strengths and Weaknesses
Strengths at scale: 9% TAO (the lowest in the EU), full limited liability protecting personal assets, unlimited revenue ceiling, full B2B invoicing, EU VIES intra-community trade, dividend distributions, optional KIVA regime, and corporate credibility with marketplaces, suppliers and lenders. Weaknesses are mostly operational: mandatory double-entry bookkeeping (~30,000–80,000 HUF/month), annual statutory financial statements due 31 May, mandatory annual NAV TAO declaration, more complex VAT compliance, and the 3M HUF capital lock-in (though usable as working capital).
3. Revenue Thresholds — KATA, Átalányadó and KFT Crossover Points
The Three Critical Numbers
Hungarian e-commerce taxation has three revenue thresholds that govern almost every structural decision:
The KATA Cap — 18 Million Forints
The 18,000,000 HUF KATA revenue cap is the single most important threshold in Hungarian small business taxation. Every forint of revenue up to 18M HUF in a calendar year (or pro-rated for partial-year KATA registration) is covered by the 50,000 HUF monthly flat rate. Every forint above 18M is taxed at 40% punitive rate — effectively shutting down the regime's value the moment you cross.
Importantly, the 18M HUF cap is gross revenue, not profit. A reseller doing 17.5M HUF in marketplace sales with a 25% gross margin (4.4M HUF gross profit) is still inside KATA; one doing 18.5M HUF in revenue is not, even if total profit is only 4.6M HUF.
The Átalányadó Cap — 24 Million Forints (for retail)
Átalányadó (flat-rate personal income tax) is the natural successor regime when an EV outgrows KATA but doesn't want to migrate to a KFT immediately. For retail / commerce activities (which covers e-commerce reselling), the revenue cap is roughly 24,000,000 HUF for general commerce and up to 120,000,000 HUF for full-time agricultural retailers. The deemed cost margin is generous: 40% of revenue is assumed to be cost base for resellers, meaning only 60% of revenue is taxable.
Effective rate under Átalányadó for an e-commerce reseller is roughly 15% × 60% = 9% income tax, plus TB-járulék on the minimum wage base (~32% of ~325,000 HUF/month). Total monthly burden runs roughly 150,000–200,000 HUF for a 20M HUF/year EV — markedly higher than KATA's 50,000 HUF, but still significantly lower than full bookkeeping + double-entry KFT compliance.
The KFT Crossover — Roughly 25–30M HUF Annual Revenue
Below 18M HUF B2C-only revenue, EV+KATA is mathematically unbeatable. Between 18M and ~25M HUF, EV+Átalányadó is typically the most efficient. Above ~25–30M HUF, the KFT structure becomes dominant — at higher volumes the 9% TAO rate (vs ~15% blended Átalányadó+TB), combined with limited liability protection, almost always wins on net income terms.
The exact crossover depends on profitability: a high-margin (40%+) niche reseller crosses into KFT-favourable territory sooner than a low-margin (10–15%) commodity reseller, because TAO 9% is calculated on profit while EV taxes scale with revenue.
4. Income Tax — 15% SZJA (EV) vs 9% TAO (KFT)
SZJA — Personal Income Tax for EVs
SZJA (Személyi Jövedelemadó — Personal Income Tax) is governed by Act CXVII of 1995 and applies to Egyéni Vállalkozók not using KATA. The headline rate is a flat 15% — Hungary abolished progressive PIT in 2011, replacing it with one of the simplest flat-rate systems in Europe. But "15% SZJA" only tells half the story: a non-KATA EV pays 15% SZJA on taxable income (revenue minus deductible costs, or revenue minus the deemed margin under Átalányadó), 18.5% TB-járulék on the minimum contribution base (~325,000 HUF/month in 2026), plus 13% szocho on the same base. For a non-KATA EV earning 24M HUF revenue at a 25% net margin, effective tax + contribution rate runs 28–32% of gross profit — well above the KFT path.
TAO — Corporate Income Tax for KFTs
TAO (Társasági Adó) is set by Act LXXXI of 1996. The flat rate is 9%, held steady since the 2017 reform that consolidated the previous 10%/19% tiered structure. 9% is the lowest corporate income tax rate in the European Union — lower than Ireland (12.5%), Cyprus (12.5%), Bulgaria (10%) and Estonia (20% but only on distributed profits). For a KFT making 30M HUF profit, the TAO bill is exactly 2.7M HUF — leaving 27.3M HUF of after-tax retained earnings.
The Full Hungarian Corporate Tax Stack
A KFT pays four tax layers, all relatively low: TAO 9% on profit; HIPA 0.5–2% local business tax (helyi iparűzési adó, set by each municipality — Budapest uses the 2% cap, Szentendre and many smaller towns offer 1% or lower); Innovációs járulék 0.3% for companies above 100M HUF revenue with >10 employees; and optional KIVA 10% as an alternative regime. For a typical mid-sized Budapest KFT, blended corporate-side tax (excluding payroll) runs ~11–12% of profit — still among the lowest in the EU.
EV vs KFT Effective Tax Comparison Table
| Annual Revenue | EV+KATA | EV+Átalányadó | KFT (TAO 9% + payroll) | Winner |
|---|---|---|---|---|
| 5,000,000 Ft | 600,000 Ft | ~1,400,000 Ft | ~1,800,000 Ft | EV+KATA |
| 12,000,000 Ft | 600,000 Ft | ~2,400,000 Ft | ~2,200,000 Ft | EV+KATA |
| 18,000,000 Ft | 600,000 Ft | ~3,200,000 Ft | ~2,800,000 Ft | EV+KATA |
| 24,000,000 Ft | N/A (over cap) | ~3,800,000 Ft | ~3,400,000 Ft | KFT |
| 40,000,000 Ft | N/A | ~6,500,000 Ft | ~4,800,000 Ft | KFT |
| 80,000,000 Ft | N/A | N/A (over cap) | ~8,500,000 Ft | KFT |
Indicative figures based on a 25% net margin reseller, 2026 thresholds. Actual obligations vary by category, KIVA election, dividend extraction strategy and local HIPA rate.
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5. Social Security Contributions — TB-Járulék and Szocho
KATA — Contributions Already Baked In
The single most attractive feature of KATA is that the 50,000 HUF monthly flat rate already covers SZJA, pension contribution, health insurance and szocho. A KATA-payer EV files no additional declarations and makes no separate payments — the flat envelope is the whole story. The trade-off is that contributions accrue at roughly the minimum-wage pension base. For a 30-year-old founder this matters little; for a 55-year-old approaching retirement, the lower pension accrual versus full TB-járulék can be a meaningful long-term cost. Some experienced founders choose Átalányadó with full TB-járulék specifically to maximise pension accrual.
Non-KATA EV — 18.5% + 13% on Minimum Wage Base
A non-KATA EV (general SZJA or Átalányadó) pays contributions on a minimum contribution base (járulékalap), normally the guaranteed minimum wage — ~325,000 HUF/month in 2026 for skilled work. The split: 18.5% TB-járulék (pension + health + unemployment) plus 13% szocho. Combined, contributions run roughly 32% of the minimum base = ~104,000 HUF/month, on top of 15% SZJA on actual or deemed profit.
KFT — Contributions Only on Payroll
A KFT pays contributions only on payroll — not on retained profit. Profits can stay inside the company at 9% TAO and distribute later as dividends (15% SZJA on the dividend; szocho capped). For each employee (including the founder as managing director): 15% SZJA + 18.5% TB-járulék withheld from gross salary, plus 13% szocho paid by the KFT on top. A founder optimising tax typically pays themselves the legal minimum salary (~325,000 HUF/month) and distributes the rest as dividends — total tax burden ~16–20% of gross compensation versus 32%+ as an EV.
KIVA — The 10% Consolidated Alternative
KIVA (Kisvállalati Adó) is an optional regime for KFTs and Bt. partnerships with ≤50 employees and ≤6B HUF revenue. It replaces TAO 9% + szocho 13% with a single 10% rate on payroll plus dividend distributions. KIVA is better than TAO+szocho when payroll is high relative to profit — typical for service KFTs, software shops, fulfillment operations or any KFT where total payroll exceeds ~1.5× annual profit. For pure resellers with low payroll, classical TAO 9% + 13% szocho usually wins.
6. Limited Liability — KFT Protection vs Personal Risk Under EV
The EV Exposure
The single most important non-tax difference between EV and KFT is personal liability. An Egyéni Vállalkozó is not a separate legal person — the entrepreneur and the business are legally identical. Every business debt, customer claim, regulatory fine and product-liability lawsuit reaches directly into the entrepreneur's personal assets: bank accounts, salary from other employment, property, vehicles, and (subject to homestead protection) the family home. For e-commerce — physical goods, defective-product risk, GDPR exposure, marketplace chargebacks, payment processor reserves — this risk grows linearly with revenue.
The KFT Shield
A KFT is a separate legal person. Members (tag) and managing directors (ügyvezető) are normally liable only up to the value of their share capital contribution. The 3M HUF törzstőke is the legal ceiling on member liability. The shield is not absolute — Ptk. provides three exceptions where personal liability "pierces the veil": mögöttes felelősség (abuse of limited liability for fraudulent purposes), felszámolási eljárás (failing to file for bankruptcy on time despite obvious insolvency), and tax fraud or wilful misrepresentation (NAV can pursue the managing director personally). Run a KFT properly (timely accounting, no fraudulent intent, prompt insolvency filing if needed) and 3M HUF is genuinely the ceiling — a powerful protection in a category where one bad shipment or GDPR breach can produce six-figure claims.
The Insurance Angle
EVs in higher-risk categories (electronics, cosmetics, children's products, food) often supplement personal liability with vállalkozói felelősségbiztosítás (entrepreneur liability insurance) — typical premiums 30,000–80,000 HUF/year for 10–25M HUF coverage. KFTs typically purchase a similar policy at the company level. Both add a financial buffer between business operations and personal/corporate balance sheets.
The liability shift point: Once your inventory exposure crosses ~5M HUF and your annual revenue passes ~18M HUF, the KFT's limited liability protection is usually worth more than the additional accounting overhead. Most experienced Hungarian e-commerce founders migrate to a KFT specifically for the liability shield, even when the tax math is roughly neutral. Plan a KFT formation →
7. The 2022 KATA Reform — B2C-Only Restriction
What KATA Used to Be
Before 1 September 2022, KATA was Hungary's most popular small business tax regime — roughly 400,000 EVs and many Bt. partnerships paid the 50,000 HUF flat rate. It was used by genuine micro-entrepreneurs but also by hundreds of thousands of contractors who effectively worked as employees for a single principal company while billing them as KATA invoices. This created an estimated 30–60 billion HUF/year hole in payroll tax revenue.
The 2022 Reform
In July 2022, Parliament passed Act XIII of 2022 amending the KATA Act, effective 1 September 2022. The reform restricted KATA to Egyéni Vállalkozók only (excluding Bt. and other partnership forms), restricted KATA to B2C invoicing only (invoicing any company — Hungarian or foreign — voids KATA status), and maintained both the 18M HUF revenue cap and the 50,000 HUF/month flat rate.
Impact on E-Commerce Sellers
For pure marketplace resellers selling to private individuals, the reform is largely neutral — marketplace orders to consumers continue to fit cleanly under KATA. For sellers with any B2B component the impact is severe: wholesale to other retailers voids KATA on all revenue in that year; drop-shipping with another business as the principal disqualifies KATA; cross-border B2B sales (intra-EU VIES) disqualify KATA on those transactions. Note: marketplace seller fees and commission credit notes received from Emag/Allegro/Trendyol do NOT affect KATA status (you are the customer in that relationship, not the seller).
The Practical Test
If your e-commerce business is marketplace-only B2C (Emag, Allegro HU, Trendyol HU, your own Shopify with private customers) selling to private buyers, KATA remains viable up to the 18M HUF cap. If any B2B revenue is on the horizon — even occasional wholesale, B2B platforms, or dropshipping principal arrangements — plan from day one for either Átalányadó or a KFT.
8. Accounting Simplicity — Single-Entry EV vs Double-Entry KFT
EV — Single-Entry Bookkeeping
Egyéni Vállalkozók keep single-entry books (egyszeres könyvvitel), governed by the Personal Income Tax Act. Required artefacts: bevételi nyilvántartás (revenue register), pénztárkönyv or naplófőkönyv (cash book / journal-ledger for non-KATA EVs), tárgyi eszközök nyilvántartása (fixed asset register if applicable), and the annual SZJA declaration filed by 20 May.
For a KATA-payer EV bookkeeping is genuinely trivial: revenue register, monthly KATA payment, annual nyilatkozat. Many KATA-EVs do their own books in a spreadsheet — total compliance overhead well under 5 hours/year. For a non-KATA EV the load is higher: monthly ÁFA bevallás, Online Számla invoice issuance, quarterly TB declarations, annual SZJA return. Typical accountant fee: 15,000–30,000 HUF/month.
KFT — Mandatory Double-Entry Bookkeeping
KFTs must keep double-entry bookkeeping (kettős könyvvitel) per the Accounting Act (Számviteli törvény, 2000. évi C. törvény). This is non-negotiable, requires a regisztrált könyvelő (registered accountant), and includes főkönyvi naplók (general ledger), analitikus nyilvántartások (sub-ledgers for customers, suppliers, inventory), annual financial statements (mérleg, eredménykimutatás, kiegészítő melléklet) by 31 May, mandatory NAV uploads (real-time Online Számla, monthly ÁFA, quarterly TAO előleg, annual TAO bevallás) and a cégbíróság deposit of the annual statements.
Typical monthly accountant fee for a single-shareholder KFT with <100 marketplace transactions/month: 30,000–80,000 HUF/month. For a fast-growing KFT with payroll, multiple marketplaces and intra-EU trade, fees can run 80,000–200,000 HUF/month.
Accounting Overhead Comparison
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9. The EV→KFT Migration — Step-by-Step Playbook
Why and When to Migrate
Three triggers commonly prompt an EV→KFT migration in 2026: approaching the 18M HUF KATA cap or 24M HUF Átalányadó cap; incoming B2B opportunities (wholesale, marketplace-vendor or cross-border) that are incompatible with KATA; and growing inventory exposure in liability-sensitive categories (electronics, cosmetics, food) where personal exposure becomes a meaningful risk.
The 4–6 Week Migration Timeline
- Week 1 — KFT formation: engage attorney, draft articles, deposit 3M HUF share capital, submit to cégbíróság (3–5 working days)
- Week 2 — NAV registrations: ÁFA registration, EU VIES enrolment, Online Számla certificate, optional KIVA election (filed by 31 December for next-year effect, or within 30 days of incorporation)
- Week 3 — Banking and PSPs: open KFT bank account, update SimplePay/Barion/Stripe merchant identities, open new PayPal Business account under KFT tax ID
- Week 4 — Marketplace re-onboarding: open new Emag, Allegro HU, Trendyol HU seller accounts under the KFT — this is usually the longest step (~10–14 days for full verification)
- Week 5 — Inventory transfer: transfer stock from EV to KFT at fair market value via invoice; this is a B2B invoice and triggers KATA exit if the EV was on KATA — plan as the final KATA transaction
- Week 6 — EV closure: close the EV at Ügyfélkapu, file final SZJA, settle final KATA, formally deregister from NAV
The Three Painful Steps and the KATA Exit
Marketplace re-onboarding is almost always slowest — Emag, Allegro HU and Trendyol HU treat the KFT as a brand-new seller, with full verification cycles and ranking benefits often forfeited; plan a 14-day overlap. PayPal merchant migration requires a new business account under the KFT tax ID. Inventory transfer pricing must be at arms-length value — under-pricing creates SZJA risk, over-pricing creates TAO risk; have your accountant approve the methodology before issuing the invoice.
If the EV was on KATA, the inventory-transfer invoice is by definition a B2B invoice — which disqualifies KATA. Plan this as the final transaction on the KATA-EV: issue the invoice, formally exit KATA, file the partial-year KATA reconciliation, then close the EV. Failing to file the exit means NAV will assume KATA continues and apply the 40% punitive rate to subsequent revenue.
Migration timing tip: Most experienced founders schedule the EV→KFT migration for October–November, so the new KFT starts trading from 1 January. This avoids partial-year tax reconciliations and aligns the KFT's first fiscal year with the calendar year. Plan a Q4 migration →
10. EV vs KFT Decision Matrix — Choose Your 2026 Structure
The single most useful artefact for choosing your Hungarian e-commerce legal form is a side-by-side decision matrix. The table below summarises both structures across every dimension that matters in 2026.
| Dimension | Egyéni Vállalkozó (EV) | KFT | Winner |
|---|---|---|---|
| Setup time | 1 day (Ügyfélkapu) | 3–5 working days (cégbíróság) | EV |
| Setup cost | ~0 HUF | 100,000–150,000 HUF + 3M HUF capital | EV |
| Income tax | 50,000 Ft/mo (KATA) or 15% SZJA | 9% TAO (EU's lowest) | EV ≤18M / KFT >18M |
| Revenue ceiling | 18M Ft (KATA) / 24M (Átalányadó) | Unlimited | KFT |
| Liability | Full personal liability | Limited to share capital | KFT |
| B2B invoicing | Voids KATA; possible under SZJA | Unrestricted | KFT |
| Accounting overhead | Single-entry, ~5 hours/year (KATA) | Double-entry, monthly accountant required | EV |
| Pension accrual | Minimum wage base (KATA) | Full salary base | KFT |
| Dividend distributions | Not applicable | 15% SZJA + szocho (capped) | KFT |
| Marketplace credibility | Lower for high-value categories | Higher; required by some EU partners | KFT |
| Inheritance / succession | Ceases on owner's death | Continues; shares inherited | KFT |
The Three Decision Rules
- Rule 1 — Pure B2C, <18M HUF revenue: Egyéni Vállalkozó + KATA. Cheapest, fastest, simplest. Re-evaluate when crossing 15M HUF.
- Rule 2 — Pure B2C, 18–25M HUF revenue: EV + Átalányadó if you want to stay solo, KFT + TAO if you want B2B flexibility or liability protection.
- Rule 3 — Any B2B, or above 25M HUF revenue, or significant inventory exposure: KFT with TAO (or KIVA if payroll-heavy). The 9% rate plus limited liability becomes structurally dominant.
Hungarian Legal Framework 2026 — Acts, NAV, Consumer Protection
EV — Act CXV of 2009
The Egyéni Vállalkozó form is governed by Act CXV of 2009 on Sole Proprietorship and Sole Trader Enterprises (2009. évi CXV. törvény). §3 regulates electronic registration via Ügyfélkapu, §16 codifies the entrepreneur's full personal liability, §19 covers the optional Egyéni Cég intermediate form (rarely used since the simplified KFT procedure made KFT formation cheap), and §21 requires declaring TEÁOR'08 activity codes — e-commerce is typically 4791 "Retail sale via mail order houses or via Internet".
KFT — Civil Code Book Three + Társasági Adótörvény
KFTs are governed by Act V of 2013 — the Civil Code (Polgári Törvénykönyv, Ptk.) Book Three, which consolidated the previous Companies Act into the Civil Code. Ptk. §3:159 defines the KFT as a company with subscribed share capital divided into contributions, with member liability limited to that contribution; §3:161 sets the 3M HUF törzstőke minimum; §3:184–§3:208 govern the ügyvezető appointment, member meetings and dividend distribution rules.
Corporate taxation is governed by the Társasági adótörvény (Corporate Income Tax Act, 1996. évi LXXXI. törvény, Tao. tv.). §19 establishes the 9% flat TAO rate; §22 codifies the R&D, development and growth tax credits (fejlesztési adókedvezmény) that further reduce the effective rate for qualifying KFTs.
NAV — Online Számla and Tax Administration
NAV (Nemzeti Adó- és Vámhivatal — National Tax and Customs Administration) administers both EV and KFT taxation through a unified portal. Online Számla is mandatory real-time e-invoice reporting for any VAT-registered entity since July 2018, transmitting XML invoice data to NAV within minutes of issuance. ÁFA bevallás is monthly for medium/large taxpayers, quarterly for smaller ones. SZJA bevallás for EVs is due by 20 May; TAO bevallás for KFTs by 31 May. Both forms file through Ügyfélkapu and KAÜ.
Consumer Protection — GDPR, 14-Day Withdrawal, Szavatosság
GDPR is enforced by NAIH (Nemzeti Adatvédelmi és Információszabadság Hatóság); marketplaces and sellers are joint controllers for B2C contact data. The 14-day right of withdrawal applies to all distance-purchased products under Government Decree 45/2014. (II. 26.). Szavatosság — Hungary's 2-year statutory warranty on B2C sales under Ptk. §6:159 et seq. — is mandatory and independent from jótállás (commercial guarantee).
Compliance is not optional in 2026. NAV's audit programme has accelerated since 2023, with marketplaces now sharing seller data directly with NAV under DAC7. Zunapro bundles a Hungarian compliance pack — automated Online Számla issuance, ÁFA export, szavatosság templates — alongside marketplace integrations. See compliance bundle →
How to Start — 2026 Step-by-Step
1. Choose Your Structure
- Side hustle to 18M HUF, B2C only → EV + KATA
- 18–24M HUF, B2C+B2B mix → EV + Átalányadó or KFT + TAO (model both)
- Above 25M HUF or significant inventory → KFT + TAO (or KIVA if payroll-heavy)
- Foreign founder wanting EU operating base → KFT + TAO
2. Register Your Entity, NAV and Online Számla
- EV: Ügyfélkapu → EVNY-A form → operational in 24 hours
- KFT: engage Hungarian attorney → draft articles → cégbíróság → operational in 3–5 working days; total cash outlay ~€600–€1,200 including capital
- NAV Online Számla: technical user, XML signing certificate, real-time submission of every invoice — Zunapro handles this automatically for all marketplace orders
3. Marketplace Onboarding + Zunapro
Open seller accounts on Emag Hungary, Allegro HU and Trendyol HU under your chosen entity. KFT onboarding requires the cégkivonat (company extract); EV onboarding requires the NAV regisztrációs igazolás. Then connect Zunapro: paste API keys, map your master catalog, enable NAV Online Számla, and go live — typically 10 minutes for a 1,000-SKU catalog.
Form a Hungarian KFT and centralise everything in one panel
KFT formation in 3–5 days · NAV Online Számla activation · Emag + Allegro HU + Trendyol HU + own shop integration · TAO 9% (EU's lowest) optimised from day one.
Form a KFT in Hungary →Hungarian EV vs KFT FAQ 2026
Which is better for Hungarian e-commerce in 2026 — Egyéni Vállalkozó or KFT?
For B2C-only revenue below 18M HUF/year, KATA-eligible Egyéni Vállalkozó (EV) is the lowest-tax structure — 50,000 HUF/month flat rate covers personal income tax, pension and szocho in one envelope.
Above 18M HUF, or whenever B2B invoicing is needed, a KFT becomes more efficient: 9% TAO corporate income tax (Europe's lowest) plus optional KIVA at 10% can beat EV's blended ~30% effective rate. The 2022 KATA reform restricted KATA to B2C-only, which makes KFT essentially mandatory for any reseller with even occasional B2B invoices.
What is the KATA flat tax threshold in 2026?
KATA (Kisadózó Vállalkozók Tételes Adója) caps revenue at 18,000,000 HUF per calendar year. Anything above the cap is taxed at a 40% punitive rate on the excess.
The headline rate remains 50,000 HUF/month for full-time KATA payers (covering personal income tax, pension and szocho), with a higher 75,000 HUF/month optional tier that increases pension accrual. KATA is available only to Egyéni Vállalkozók since the 2022 reform.
What is Hungary's corporate income tax rate (TAO) for a KFT?
Hungary's TAO (Társasági Adó — Corporate Income Tax) rate is 9% — the lowest in the European Union and a major reason cross-border e-commerce sellers choose to domicile a KFT in Budapest.
KFTs also pay a 0.5–2% HIPA (helyi iparűzési adó, local business tax) on revenue, plus 13% szocho on payroll. KIVA (10% small business tax) is an optional alternative regime that consolidates TAO + payroll social contributions into one rate, generally better when payroll is high relative to profit.
Can a foreign person open a KFT in Hungary?
Yes — Hungary is one of the friendliest EU jurisdictions for non-resident KFT formation. Any natural person or legal entity worldwide can be a member (tag) and managing director (ügyvezető) of a Hungarian KFT.
The minimum share capital is 3,000,000 HUF (~€7,500). Formation is typically completed in 3–5 working days through a Hungarian attorney, and the company receives a Hungarian VAT number, EU VIES registration and a tax identifier from NAV simultaneously. Most foreign founders also appoint a Hungarian-resident attorney as the registered service address (kézbesítési megbízott).
What changed in the 2022 KATA reform?
From 1 September 2022, KATA was restricted to Egyéni Vállalkozó (sole traders) invoicing private individuals (B2C) only. Invoicing any other business — Hungarian or foreign — disqualifies the seller from KATA on that revenue and triggers ordinary income tax plus social contributions on the disqualified amount.
The reform pushed thousands of B2B contractors and many marketplace resellers out of KATA into either a KFT or the new Átalányadó (flat-rate income tax) regime for EV. For pure B2C marketplace sellers (Emag, Allegro HU, Trendyol HU), KATA remains viable up to the 18M HUF cap.
How long does it take to convert from Egyéni Vállalkozó to KFT?
The mechanical KFT incorporation takes 3–5 working days. The end-to-end EV→KFT migration — closing the EV with NAV, transferring inventory and contracts, registering new VAT and marketplace seller accounts under the KFT — typically takes 4–6 weeks.
The hardest steps are usually marketplace re-onboarding (Emag, Allegro HU, Trendyol HU each treat the KFT as a brand-new seller) and updating PayPal / Stripe / SimplePay merchant identities to the new tax number. Most experienced founders schedule the migration for October–November so the KFT starts trading from 1 January.
What is KIVA and when is it better than TAO?
KIVA (Kisvállalati Adó — Small Business Tax) is an optional alternative to corporate income tax + payroll social contributions, set at 10% in 2026. KIVA replaces TAO 9% + szocho 13% with one consolidated 10% rate.
KIVA is generally better than TAO + szocho when payroll costs are high relative to profit — typical for service KFTs, fulfillment operations with many employees, or any KFT where total payroll exceeds roughly 1.5× annual profit. For pure resellers with low payroll, classical TAO 9% + 13% szocho on payroll usually wins. The 2026 KIVA revenue cap is 6 billion HUF.
What social security contributions does an EV pay in 2026?
A KATA-payer EV pays nothing on top of the 50,000 HUF/month — that flat rate already includes pension, health and unemployment contributions, accruing at roughly minimum-wage level.
A non-KATA EV (Átalányadó or general SZJA) pays 18.5% TB-járulék on the minimum tax base (typically the guaranteed minimum wage ~325,000 HUF in 2026), plus 13% szocho — totalling roughly 32% of the base, i.e. ~104,000 HUF/month. Átalányadó-EVs pay 15% SZJA on the deemed profit margin on top of contributions.
Does a KFT director need to be a Hungarian resident?
No. A Hungarian KFT can have a managing director (ügyvezető) who is non-resident and even non-EU. The director must register with NAV and obtain a Hungarian tax identifier (adóazonosító jel) — a free administrative step.
Most foreign founders also appoint a Hungarian-resident attorney or accountant as the kézbesítési megbízott (registered service address for official correspondence). This appointment costs roughly 50,000–150,000 HUF/year and is the standard arrangement for non-resident KFT owners.
How much does it cost to form a KFT in Hungary in 2026?
Out-of-pocket fees for a standard Hungarian KFT formation are roughly 50,000–100,000 HUF in attorney fees plus 50,000 HUF court duty, totalling 100,000–150,000 HUF (~€250–€400).
The 3,000,000 HUF minimum share capital is not a fee — it remains on the KFT's balance sheet and can be used immediately for working capital, inventory or marketing. Total cash outlay to be operational with full ÁFA + EU VIES + bank account is typically around €600–€1,200 including the first year's accountant retainer.
Which legal form is required for Emag Hungary marketplace?
Emag Hungary accepts both Egyéni Vállalkozó (EV) and KFT seller accounts. The verification documents differ: EVs upload their NAV registration certificate (regisztráció és vállalkozói igazolvány), while KFTs upload the cégkivonat (company extract) and tax certificate.
Both must provide a Hungarian VAT number for HUF-denominated payouts; foreign-domiciled EU sellers may operate via OSS with their home-country VAT registration. KFT sellers typically get higher trust ratings and faster category approvals on Emag and Allegro HU than EV sellers, particularly in regulated categories (electronics, cosmetics, food).
Do I have to switch to a KFT once I cross 18 million HUF?
Not strictly — you can remain an EV but exit KATA into Átalányadó (flat-rate, ~9% effective on deemed margin) or full SZJA (general personal income tax). The Átalányadó cap for retail commerce is roughly 24M HUF, giving a buffer between KATA exit and forced KFT migration.
However, beyond ~25–30M HUF in annual revenue the KFT structure becomes mathematically advantageous in almost every scenario, both for tax efficiency (TAO 9% vs SZJA 15% + szocho) and for limited liability protection. Most growing Hungarian e-commerce sellers migrate to a KFT between 18M and 40M HUF annual revenue, typically scheduling the migration for October–November so the KFT starts trading from 1 January.
What is NAV Online Számla and does it apply to both EV and KFT?
NAV Online Számla is Hungary's mandatory real-time e-invoice reporting system, in force since July 2018. Every ÁFA-registered entity — whether EV, KFT or other form — must transmit invoice data to NAV within minutes of issuance via the Online Számla API in structured XML format.
KATA-EVs without ÁFA registration are exempt from Online Számla but must still issue numbered invoices (számla) on paper or PDF. Any cross-border B2B transaction triggers ÁFA registration and therefore Online Számla compliance. Zunapro auto-issues Online Számla invoices the moment a marketplace order is received and stores the returned NAV invoice identifier.
Start your Hungarian e-commerce business — KFT formation in 3–5 days
End-to-end legal support · 3M HUF capital deposit · NAV Online Számla activation · Emag + Allegro HU + Trendyol HU onboarding · TAO 9% (EU's lowest) optimised from day one. No demo required, no long contracts.
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