More and more Hungarian e-retailers are moving their headquarters to Slovakia
In recent years, more and more Hungarian online retailers have decided to relocate their operations to Slovakia. Although corporate tax in Hungary is one of the lowest in Europe (9%), the neighboring country offers several advantages that make the operating environment more attractive. Economic, tax and administrative factors are behind this phenomenon, writes G7.
Why Slovakia?
1. More favorable tax conditions
Lack of business tax: In Hungary, the local business tax (hipa) is tied to sales revenue, while in Slovakia this type of tax does not exist. This is especially advantageous for retailers with high sales revenue but low margins.
Special retail tax: In Hungary, the special tax introduced above 500 million forints in annual sales also places a serious burden on businesses, especially companies with higher turnover. There is no such tax in Slovakia.
2. Wider cost accounting options
In Slovakia, companies can more easily and more widely account for their operating costs, such as the purchase and depreciation of company cars. This can reduce the corporate tax base, even if the tax rate is higher than in Hungary.
3. More stable legal environment
According to the experience of Hungarian entrepreneurs, the legal and economic environment in Slovakia is more predictable. Law amendments are introduced less frequently and with a longer preparation time, which makes it easier for companies to operate.
4. Friendlier attitude of the authorities
In Slovakia, tax audits are less strict, and the authorities do not initiate investigations on the assumption of fraud. This reduces the administrative burden on companies.
Related news
The special retail tax will remain until 2026
The new tax package announced recently brings significant changes for…
Read more >The proportion of domestic food products in Slovak stores has further decreased
The proportion of domestic food on the shelves of Slovak…
Read more >Slovak restaurants can serve bear meat
The consumption of bear meat has been allowed in Slovakia,…
Read more >Related news
WHO: They urge a 50 percent price increase for tobacco, alcohol and sugary drinks
The World Health Organization (WHO) is calling for the prices…
Read more >Eurozone economic growth accelerated in June
The eurozone’s economic performance accelerated in June, according to the…
Read more >This is how drug prices are changing: the government introduced price restrictions
The Ministry of National Economy’s price restrictions on medicines came…
Read more >