Doing Business in Hungary
The Hungarian Investment Promotion Agency (HIPA) was established under a Government Decree to provide professional help to foreign companies intending to invest in Hungary. Its task is to support the implementation of the Government’s key investment promotion targets and to foster bilateral and multilateral international economic relations. For more information, please visit the website www.hipa.hu
Key reasons to invest in Hungary
One of the competitive advantages Hungary has compared to other countries in the region is the government’s strong commitment to streamlining business processes and to increasing the competitiveness of both SMEs and large enterprises in Hungary through a wide range of available incentives.
Both refundable and non-refundable incentives are available to investors coming to or expanding in Hungary. The main types of incentives related to investments are cash subsidies (either from the Hungarian Government or from EU Funds), tax incentives, low-interest loans, or land available for free or at reduced prices. The regulations on incentive opportunities are in accordance with EU rules.
Hungary is situated in the heart of Europe, which makes the country optimal for manufacturing, services and logistics. As a member of the European Union, Hungary offers access to a market of 250 million people within a 1000km radius, while the EU common market offers more than 500 million people. Hungary is the ideal base for investors who are planning cross-border business developments.
Beside the favourable business climate and availability of various incentives, Hungary is an ideal place for doing business for a series of other reasons:
• Ideal geographical position in the centre of Europe
• Excellent infrastructure, ready-made industrial sites, offices and science parks
• Good balance of labour costs and quality
• Governmental incentives (cash subsidy, tax allowance)
• Investment friendly economic policy
• Competitive tax system
High quality labour pool
Foreign capital is, in a large part, attracted by the highly skilled and highly educated labour force, particularly in the engineering, IT, pharmaceutical, economics, mathematics, physics and professional services sectors. Around two-thirds of the workforce in Hungary has completed a secondary, technical or vocational education.
The average wages in Hungary are ca. 60% less than the average of the EU 27, which makes the Hungarian workforce highly competitive. High English proficiency (90% of students speak English) and high number of working hours/year make Hungarians a highly efficient workforce.
TIME ZONE: GMT + 1 hour
POPULATION: 9,849,000 (as of January 2015)
NATIONAL CURRENCY: Forint (HUF)
GDP (PPP): EUR 174,328 billion (2013)
INFLATION: -0,2% (2014)
UNEMPLOYMENT RATE: 7.7% (2014 Q4)
MEMBERSHIP IN INTERNATIONAL ORGANISATIONS: EU, UN, OECD, WTO, NATO, IMF, EC
Please visit the Hungarian Investment Promotion Agency (HIPA) for more information at www.hipa.hu.