Doing Business in Hungary

Hungary has a competitive advantage over the other countries within it's region; the government's commitment to streamlining it's business processes and increasing competition amongst the small & medium size enterprises (SME) and the large enterprises through a broad range of national incentives.

 

Whether you are moving to or expanding into Hungary, both refundable and non-refundable incentives are available to investors. Common incentives related to investments are cash subsidies; either from the Hungarian Government or from EU funding, tax incentives, low interest loans or land available for free or at a subsidised prices. All incentive opportunities are regulated by EU and are in accordance with EU law.

 

 

Hungary is situated on the edge of Eastern Europe, making the country optimal for logistics, manufacturing and services. Hungary is an ideal base for investors looking for foreign investment business developments. The highly skilled and highly educated workforce in particular in the fields of engineering, IT, pharmaceutical, economics, mathematics and physics, attract a large sum of foreign capital. Approximately two-thirds of the labour force in Hungary has completed secondary or higher education training.

 

The average salary in Hungary is circa 60% lower than the average of the EU 28, a high English proficiency (ca. 90% of students speak English) and a high working hours to year ratio, makes the Hungarian workforce highly competitive.

 

Besides a favourable business climate and the availability of various incentives; Hungary is an ideal location for doing business for several other reasons:

 

  • Ideal geographical location near the centre of Europe for manufacturing, services and logistics;
  • Excellent infrastructure, constructed industrial sites and offices;
  • Effective balance of labour cost and quality;
  • Governmental and district incentives (cash subsidy, tax allowances)
  • Investment friendly economic policy
  • Competitive tax system
  • Financial and fiscal stability
  • Success in reducing public debt