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Invest in Hungary

Updated on Wednesday 29th April 2020

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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. Businessmen who choose to invest in Hungary will benefit from the country's trained workforce.
 

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

If you want to invest in Hungary you should know that this country 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.


Legislation for Foreign Investments in Hungary
 

The legislation for foreign investments in Hungary represents  the set of laws meant to regulate the activity of foreign investors in this country and also protect them. Hungary presents many advantages for the foreign investors and businessmen interested in performing business activities here, such as: a highly efficient workforce, a well developed infrastructure and a strategical geographical position.
 
Our local company formation specialists can help foreign businessmen invest in Hungary and provide them with assistance through the entire process of company registration in this country.
 
The Foreign Investment Act in Hungary
 
The Foreign Investment Act in Hungary represents a set of laws, enabled in 1988, providing the main legal framework that guarantees foreign investors will benefit from the same treatment that Hungarian investors have. This act has been amended over the years with the aim of ensuring greater protection both for foreign and domestic investors.  The Foreign Investment Act in Hungary focuses on three directions:
 
  • - to create suitable grounds for international cooperation between Hungary and foreign investors coming in the country;
  • - to encourage the injection of foreign capital;
  • - to boost the country’s technological development.
 
The authority responsible with foreign investments in Hungary
 
The Investment and Trade Development Agency in Hungary was established in 1993 and its main objective was to help companies make major investments in Hungary. The responsibilities of this authority were transferred in 2011 to a smaller agency, the Hungarian Investment and Trade Development Agency (HITA). This new authority is operating under the Ministry of National Economy.
 
Our company registration experts in Hungary can provide you with more details about each industry and help you invest in Hungary by establishing a company in any of the business sectors available in this country.


Why invest in Hungary?

 
Hungary’s economy is becoming more competitive, even if the changes are taking place at a slower pace. Slowly but surely, the country is becoming a competitive market, even when compared to Asia.
 
Production plants in Hungary include car assembly, which still involves manual workers in Hungary and provides workplaces. However, Hungary’s Prime Minister believes that the country needs to focus on the future and consider making investments in other key sectors, such as research and development and the production of high value added goods. The Prime Minister also believes that Singapore’s interest in the Hungarian market is a sure proof of the country’s valuable workforce. 
 
Hungarian officials encourage the existence of free trade agreements between Europe and Asia and believe that these agreements will increase exports.
 
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 on how to invest in Hungary.
 

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