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Company Formation Hungary



5 Reasons for Investing in Hungary

Updated on Thursday 22nd February 2018

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Foreign investors looking for reasons to invest in Hungary can easily see that this European country offers plenty of business opportunities. Hungary is a member of the European Union which represents an advantage for other European companies that want to open branches or subsidiaries here. Furthermore, important international companies have established their presence in the country and benefit from its central location and its friendly investment  policies.

The country offers many advantages that can be summarized into five key reasons for investing in Hungary. Our company registration experts in Hungary can give you detailed information about Hungary's economy and business market.


1. Good geographical location

Hungary has a central location in Europe which makes it ideal for foreign investors who want to expand their operations in this continent. The geographical location is suitable for transport and logistics activities or for import and export businesses. Other European countries are easily accessible from Hungary and the country offers access to a valuable internal market.

2. Well trained workforce

Human resources are one of the country’s main assets. Investors have access to a well trained workforce: individuals have college/university degrees or have other qualifications in areas like manufacturing.
Hungarians have achieved good results in fields like technical and medical sciences. The workforce in Hungary is also more accessible to the employer who benefits from competitive average wages.

3. Business friendly environment

Hungary welcomes foreign direct investments and has a competitive policy for foreign investments. Although the country offers many business opportunities, some of the leading sectors in Hungary are:
  • - the automotive industry;
  • - the electronics sector;
  • - the services sector;
  • - the food and agriculture industry.
Our company registration experts in Hungary can give you detailed information about these investments fields and the business opportunities that exist for foreign entrepreneurs

4. A favorable tax system

Hungary has advantageous taxes for companies and individuals. The corporate income tax is between 10 and 19%, lower than in other European countries like France or the United Kingdom. The personal income tax has a flat rate of 16%. This competitive tax system is aided by certain tax incentives and allowances.

5. Government incentives

The Hungarian government encourages investments and competitiveness through a range of incentives. This state aid can be either refundable or non-refundable. Special attention is offered to the progress of research and development activities and R&D investments. VIP investment subsidies are available for investors in Hungary and they are offered in certain cases.
Our company registration specialists in Hungary can provide you with complete assistance for company incorporation and company management in Hungary. You can contact us if you have more questions about investing in Hungary.


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