HUNGARY, AN IDEAL LOCATION TO DO BUSINESS IN THE EU
Hungary is a bustling business hub situated right at the very heart of Europe; physically and in historical, geographical, cultural and economic terms, all destinations are within easy reach. As a full European Union member, companies coming to do business here join the EU market of more than 500 million people. Hungary is an open economy and particular emphasis is placed on encouraging foreign direct investment. Forty-five of the world’s 80 largest multi - nationals, and many of their SME suppliers, have established a long-term presence in Hungary, benefiting from the highly skilled workforce, access to world-class universities, an advantageous location, qualified suppliers, and from an advanced business infrastructure. Investors do not simply regard Hungary as an ideal production location, but also as a remarkable “advanced manufacturing & innovation centre" of Europe. This trend is in line with Hungary’s intention to further increase the number of investments generating high added value: In addition to the “Made in Hungary” type of projects, increasing emphasis is put on “Invented in Hungary” type of investments. Besides reducing the corporate income tax to a 9% flat rate, Hungary introduced new forms of cash incentive measures in January 2017 to enhance corporate R&D activities and the realization of technology-intensive investments.
DID YOU KNOW THAT:
- Hungary is a land with more than 1000 years of history and a unique fusion of Eastern and Western Cultures;
- based on the disciplined fiscal policy, the sustainably low budget deficit, decreasing debt ratio, phasing out of FX loans as well as many other accomplishments, all three major credit rating agencies upgraded Hungarian government bonds to investment grade.
- Besides the personal income tax rate being 15%, Hungary also introduced a flat tax in corporate income tax rate at 9% thus making Hungary the second most competitive country in terms of taxes on corporate turnover among OECD countries, trailing only top- ranked Switzerland.
- Hungary has a highly educated and skilled cheap labour force, with high percentage of reliable language knowledge, English is widely spoken;
- The Hungarian banking system includes 35 banks, 11 specialized credit institutions and 13 co-operative credit institutions. Both local subsidiaries of major foreign financial institutions and Hungarian-owned banks are represented;
- Hungary is continuously improves the taxation system to help driving innovation and growth in various industries;
- You can start your business in 7 days (quickest in the CEE);
- Hungary has a central location and it lies at the cross-roads of three TEN-T corridors (Mediterranean, Orient/East-Med, Rhine-Danube) and has direct connection to all significant harbours and terminals in Europe;
- Hungary is within 2-3 hours by air from most major European cities including direct flights from Manchester and Liverpool;
- Hungary has a highly developed telecommunications system, and has the third fastest 4G mobile internet in the world and is on the verge of 5G;
- Hungary has 1924 km length of motorway, the total length of the railway system is 7752 km, and the total length of navigable canals, rivers and lakes regularly used for transport exceeds 7675 km;
HOW CAN WE HELP YOU?
- Providing information about the Hungarian economy, investment opportunities, business environment and regulatory background in general;
- Providing up to date sectorial information for enterprises;
- Targeted searching for potential business partners for cooperation and reaching out to them;
- Assist UK companies wishing to import from/invest in Hungary;
- Organising B2B meetings and trade missions;
- Assisting UK and Hungarian companies to participate in fairs and exhibitions;
Invest in Hungary - now, it’s your turn!
The Hungarian Investment Promotion Agency (HIPA) seeks and maintains contacts with potential foreign investors, helping them to prepare and implement strategic investment decisions, as well as providing post-decision support and encouraging their intention to re-invest. HIPA also offers company and sector-specific consultancy, recommends locations, and organises site visits. Furthermore, the Investment Promotion Agency acts as a mediator between large international companies and Hungarian firms to facilitate supplier relationships, organising supplier training, and maintaining active contact with trade associations, particularly in the automotive and electronics sectors. Meanwhile, the main targets of the Trading House are to support Hungarian enterprises, which are capable of exporting goods and services; and to find adequate international business partners for them. Also, in cooperation with its subsidiary trade houses established in various target countries, the Trading House monitors and assesses the market conditions of the specific country, in order to explore potential business opportunities for Hungarian companies.
USEFUL LINKS TO DOING BUSINESS IN HUNGARY
FURTHER USEFUL LINKS
Fiscal policy: Ministry of Finance
Monetary Policy: Hungarian National Bank
Financial markets, Stocks and FX market: Budapest Stock Exchange