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Advantages of Doing Business in Hungary

December 10, 2024

Imagine a country where car giants employ 140,000 people and add 4% to the national GDP. This is Hungary today. It’s a hub for 700 car firms, attracting businesses to the European market. The opportunities here are vast and inviting.

Hungary’s ICT sector is booming, leading Central and Eastern Europe. It’s known for top research quality and employs 250,000 people. The electronics sector is also strong, with 170,000 experts, making up 23.1% of manufacturing production. These figures show Hungary’s industrial strength and innovation.

More than 200 Business Service Centers use Hungary’s skilled workforce. The food industry benefits from the country’s geography, producing GMO-free products. The life sciences sector, with 85 companies, drives R&D spending. The Logistics & Transportation sector supports the economy, adding 5.7% to the GDP.

Doing business in Hungary offers more than just an industrious economy. It provides investment incentives for growth. The government supports businesses with cash subsidies, tax breaks, and a 9% corporate tax rate. This makes Hungary a key entry point for EU success.

Strategic Geographic Location

Hungary’s location is key for businesses wanting to enter the EU and the CEE region. It’s a bridge between Eastern and Western Europe. This makes it a great place for e-mobility and advanced manufacturing.

Connecting East and West

Hungary’s location is boosted by its good infrastructure and over 700 automotive companies. Brands like Audi and BMW show Hungary’s strength in e-mobility and manufacturing. This makes it easy for businesses to reach EU markets.

Access to Key Markets

Hungary is at the heart of Europe, making it a key entry point. Being in the EU means no tariffs for trade, making business easier. This makes Hungary a top choice for businesses looking to grow in Europe.

Hungary’s location is great for e-mobility, thanks to its growth incentives. It’s a top spot for innovation and expansion in the European market.

Competitive Labor Costs

The Hungarian economy is known for its low labor costs. This makes it a great place for businesses to grow and be efficient. The country has a skilled workforce and government support, making it perfect for cost-effective operations.

Highly Skilled Workforce

Hungary’s workforce is top-notch, especially in STEM fields. The country invests a lot in STEM education. This helps build a strong human resource base.

Hungary has a solid education system. It focuses on science, technology, engineering, and mathematics. The workforce is not just skilled but also innovative, driving industries forward.

Cost-Effective Operations

Running a business in Hungary is cost-effective. The country has low taxes and social security costs. This lets businesses operate without heavy financial burdens.

These factors make Hungary a great place for businesses. It’s an attractive option for those looking to grow in Europe without spending too much.

The government is also working hard to attract foreign investment. It’s setting up battery factories and joining big automotive supply chains. These moves make Hungary’s industries more appealing and show the government’s support for the economy.

In summary, Hungary is a great choice for businesses. It has a strong economy, a skilled workforce, and low costs. This makes it a solid base for growth and development in Central Europe.

Favorable Taxation Environment

Hungary is a top choice for businesses because of its low taxes. The corporate income tax rate is just 9%, one of the lowest in Europe. This makes Hungary very attractive for companies.

It’s not just the low tax rate that’s appealing. Hungary also offers many tax incentives and support programs. These benefits are great for both new startups and established companies looking to grow.

Corporate Tax Rates

The Hungary corporate income tax is a flat 9%. This makes Hungary very competitive in the European Union for corporate taxes. It also has a wide network of double taxation treaties.

These treaties help businesses in Hungary avoid double taxation. This makes managing finances across borders easier.

Incentives for Startups

EU funding Hungary: Companies here get help from EU funding. This supports business ventures and innovations through various EU funding opportunities and resources.
Hungary tax incentives: The country offers many incentives. These include tax exemptions for up to 13 years for significant investments in assets and developments.
Hungarian investment support: This support includes tax relief and incentives for job creation. It also includes training subsidies and support for research and development. These are key for startups to grow and improve.

Hungary is a great place for businesses looking for a supportive environment. Its commitment to growth and profitability is clear in its tax policies and support for businesses at all stages.

Supportive Government Policies

In Hungary, we aim to boost the economy and help businesses grow. The government offers many incentives and rules to help companies succeed. This support is for both small and big businesses.

Investment Support Programs

The Hungarian Investment Promotion Agency (HIPA) helps investors. It offers services from the start to the end of an investment. Hungary is a great place for investors, thanks to its business-friendly environment.

There are EU non-refundable cash grants to help new businesses. This makes it easier for companies to start in Hungary.

Regulations Promoting Business Growth

Hungary’s rules are made to help businesses grow and innovate. There are grants and subsidies to help small businesses. This makes it easier for them to succeed.

Starting a business in Hungary is easy thanks to streamlined permits. The government also supports investment and growth. This makes Hungary a good place for businesses to thrive.

Hungary has a low corporate tax rate of 9%. This is one of the lowest in Europe. There are also big tax breaks for research and development. This makes Hungary a great place for businesses to save money and grow.

Diverse funding opportunities, including low-interest loans and special enterprise zone incentives.
Strong focus on R&D, reflected in both governmental grants and the welcoming of innovative projects supported through the ‘Invented in Hungary’ initiative.
Support for technological progression through the Innovation Support grants, focusing on sustainable and tech-forward solutions.

We work closely with businesses in Hungary. We make sure they have what they need to succeed. The government supports a strong business environment.

Robust Infrastructure

Hungary’s infrastructure is a key part of its business scene. It’s known worldwide for being strong. This infrastructure boosts local and international business opportunities.

Its transportation and digital systems make Hungary a great place for businesses. This is why many see it as a top choice.

Transportation Networks

Hungary is at the heart of Central Europe. It has a well-connected network of roads, railways, and airports. These help move goods quickly across borders.

Logistics play a big role here. Hungary’s transport systems are designed for fast distribution. This makes it a great place for businesses.

Digital Connectivity

Hungary has invested a lot in its digital infrastructure. This has created a strong network for fast and reliable internet. It supports both big tech companies and small startups.

This digital network helps many sectors. E-commerce, telecoms, and IT all benefit. Hungary is a hub for digital innovation in Central Europe.

The digital and transport sectors work together well. They support growth and efficiency. Hungary’s economy is strong, thanks to these sectors.

These sectors are key to Hungary’s success. They help the country grow and attract businesses. Hungary is a great place for businesses to thrive.

In summary, Hungary’s infrastructure is very business-friendly. It helps existing businesses and attracts new ones. This makes Hungary a great place for business.

Thriving Technology Sector

Hungary is not just playing a part in global tech innovation. It’s actively shaping its future. The country’s commitment to a vibrant tech ecosystem is clear. This is shown through its strong R&D activities, IT sector growth, and dynamic startup scene.

Growing Startups and Innovation

Hungary has about 2,900 startups, employing 10,000 to 15,000 people. These startups have raised over €1.4 billion in funding. This shows the rich environment for tech innovation in Hungary.

Companies like Prezi and Bitrise are examples of Hungarian ingenuity. They started in this ecosystem. The upcoming Tech Jobs Fair in Budapest will help this growth by connecting talent with companies.

Supportive Ecosystem for Tech

The Hungarian government supports the IT sector with tax benefits and subsidies. The country also has great internet speeds and connectivity. Universities provide well-educated graduates, keeping the tech industry thriving.

The job vacancy rate in early 2024 was 2.20%, showing a high demand for tech professionals.
30% of tech companies want to grow their teams, highlighting the sector’s growth.
Budapest is a tech hub with many coworking spaces that help startups grow.

Hungary’s location gives it easy access to European markets. This boosts the startup ecosystem. With a focus on AI and cybersecurity, Hungary is set to lead in tech advancements.

Access to EU Markets

Starting a business in Hungary opens up the local market and the European Union market. This gives businesses in Hungary a big advantage. They can tap into a market of over 400 million consumers.

Hungary, as an EU member, has many trade benefits. These include lower costs and fewer rules. This makes it easier and more profitable to do business across the EU.

Benefits of EU Membership

Hungary’s EU membership offers a big advantage. It has trade agreements with all EU countries. These agreements make it easy to move goods, services, and capital without custom duties.

This not only saves money but also makes businesses more competitive in the EU.

Trade Agreements and Regulations

These trade agreements do more than just remove tariffs. They also make sure products and services meet EU health, safety, and environmental standards. This gives companies confidence when expanding into European markets.

In short, starting a business in Hungary is a smart move. It offers growth opportunities and access to the EU market. This can lead to more trade benefits and success.

Rich Cultural Landscape

Hungary’s culture is a lively backdrop for innovative business Hungary. It makes the country a top spot for Hungary business opportunities. The mix of cultures creates a warm welcome and a diverse workforce. This diversity sparks creativity and innovation in companies.

Diverse Talent Pool

Hungary’s rich heritage makes its workforce special for businesses. This diversity brings new ideas and ways of thinking. It’s a big plus for companies looking to grow globally.

Unique Market Insights

Hungarian business culture is known for its directness and respect for hierarchy. This knowledge helps businesses connect well with locals. It builds trust, key for success in Hungary.

Exploring business in Hungary teaches us about being flexible. By using local knowledge, businesses not only succeed but also help Hungary grow. They drive innovation and opportunities in this European heartland.

Quality of Life for Expatriates

Hungary is a top choice for those looking to move to Europe affordably. It’s especially great for international professionals. The cost of living here is much lower than in places like Germany, France, the UK, or the US.

For example, the average monthly cost for utilities like heating and electricity is between €100—200. Rent for a one-bedroom apartment in a good location is around €500—600 per month. This makes it easy to find a place to live without breaking the bank.

Affordable Living Conditions

Hungary also offers great financial benefits. The tax system is very favourable, with corporate tax at 9% and personal income tax at 15%.

Starting January 1, 2022, people under 25 won’t pay personal income tax up to a certain income. This shows Hungary’s commitment to supporting young talent. The economy is stable, with a low unemployment rate under 5% in sectors like IT and engineering.

Vibrant City Life and Culture

Budapest, Hungary’s lively heart, offers a rich cultural experience. It has over 40 tram lines to explore the historic centre. The city’s mix of modern and traditional charm is very appealing to expats.

High-quality healthcare services and a safe environment make Hungary an attractive place to live. The Széchenyi Recreation Card provides many recreational options. Hungary’s living standards are high, making it a great choice for a rewarding career and a happy personal life.