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.
Foreign Trade focused foreign policy, a combination of dedicated institutions to facilitate deals
In 2014 an institutional triangle was created headed by Péter Szijjártó, Minister of Foreign Affairs and Trade to support the foreign trade focused foreign policy of the Hungarian Government. The triangle of the Hungarian Investment Promotion Agency (HIPA), the Hungarian Export Promotion Agency (HEPA) and EXIM Bank operates outstandingly effective in promoting foreign trade and Hungarian exports. Following these changes, Hungarian foreign trade broke all previous records in 2016, with exports valued at EUR 93 billion and a foreign trade surplus of nearly EUR 10 billion. The export growth increased in year 2017 with exceeding the magical EUR 100 billion, and further incriased in 2018 by more than 4%.
Fun facts about the Hungarian business climate
Did you know that:
- the corporate tax rate is 9% in Hungary, the lowest in the EU
- the largest car engine manufacturing plant is Hungary (the city of Győr) operated by Audi
- Hungary is a safe heaven in the EU, business cost to terrorism is one of the lowest in the EU
- not only Hungary lies at the crossroads of three TEN-T corridors, but Budapest is connected with direct flights to Montenegro
- GMO is forbidden in the Hungarian Constitution, purely 100% GMO-free ingredients are available in Hungary
- Fiscal policy: Ministry of Finance
- Monetary Policy: Hungarian National Bank
- Financial markets, Stocks and FX market: Budapest Stock Exchange
Further useful links