Knowledge
8 Minute
A company abroad can help spread business assets across several areas. For me, this diversification is an objective in its own right: not everything should depend on the survival of one part of the business.
Spreading assets is a business objective in its own right
I do not consider a foreign company solely in terms of potential tax savings. Another purpose is to spread assets. The idea is that if one area fails, others should still be able to provide support. That is the aim of diversification, not a guarantee for any individual case.
Spreading money across several investments is a familiar approach with shares. I apply the same basic idea to a business’s own structure. An additional company can be one part of that structure. Forming it alone does not, however, establish whether the assets have been spread sensibly.
Germany, Hungary and a foundation: the allocation needs a purpose
One possible allocation is to hold some assets in Germany, some in Hungary and some in a foundation. This combination describes a structural idea. It is neither a general recommendation for Hungary nor evidence that a foundation is suitable for every business.
I distinguish between two levels here: Germany and Hungary are countries; a foundation is an organisational form. A list of these three terms is therefore not enough for a clear plan.
I would organise the preparation around these questions: which assets exist today, and where are they held? Which potential failure should not affect every area at once? What role should each component play so that other areas can continue to provide support? The answers establish which allocation suits the objective. If every component still depends on the same critical area, the intended diversification has not yet been resolved.
Professional assessment and a practical starting point for a conversation
I am Norbert Péter / DER BUDAPESTER. My approach is to build structures that spread assets rather than reduce the decision to taxation alone. Whether a particular allocation is legally and fiscally suitable requires an individual assessment by the relevant professionals. This article does not replace legal or tax advice and does not promise protection against losses.
For an initial discussion of your situation, you can use the Structure Check or contact me directly. Please bring a brief overview of your existing assets, where they are currently held and your main dependencies.
75-minute Structure Check · Contact Norbert Péter
Is your question specific or urgent? Please call me directly. I look forward to speaking with you personally.
