Hungary Frequently Asked Questions

What sectors are most attractive for investment in Hungary?

Hungary offers a range of sectors ripe for investment, particularly in:

Technology & Innovation: Hungary has developed a strong ecosystem in software development, fintech, artificial intelligence, and cybersecurity.
Agribusiness & Food Processing: Hungary’s agricultural production, including high-quality produce and processed food, offers excellent growth opportunities.
Renewable Energy & Sustainability: Hungary is expanding its renewable energy initiatives, focusing on solar and wind energy, and also green tech investments.
Healthcare & Biotechnology: Investments in healthcare services, medical technology, and biotech industries have been growing, particularly in innovative medical solutions.
Logistics & Transport: Hungary’s strategic location in Central Europe makes it an attractive hub for logistics, warehousing, and transport services.

How can I start the process of investing in Hungary?

To begin investing in Hungary, follow these steps:

Research: Utilize resources like the Hungarian Investment Promotion Agency (HIPA) and other local agencies to understand the market.
Consult with local agencies: Engage with HIPA and Invest in Hungary for advice on navigating the regulatory and business landscape.
Select your investment strategy: Consider whether you wish to invest in startups, joint ventures, or established businesses. You can also invest in specific industries or participate in venture capital.
Attend local events: Networking opportunities are abundant at events like the Budapest Business Summit and the Hungarian Investment Forum.

Are there any government incentives for foreign investors?

Yes, Hungary offers various incentives for foreign investors:

Tax Benefits: Hungary has one of the lowest corporate tax rates in the EU at 9%. Investors in specific sectors like R&D, renewable energy, and high-tech manufacturing may be eligible for tax reductions and exemptions.
Grants and Subsidies: Investment grants, subsidies, and financial support are available for projects in research and development, innovation, and sustainable energy.
EU Funding Programs: As an EU member, Hungary provides access to EU funding programs aimed at stimulating innovation and development, particularly in tech and energy sectors.

What is the process for establishing a business in Hungary?

The process to establish a business in Hungary includes the following steps:

Step 1: Choose a company form (e.g., limited liability company, joint-stock company) and prepare necessary founding documents.
Step 2: Register the business with the Hungarian Court of Registration.
Step 3: Open a business bank account and deposit the minimum required capital.
Step 4: Apply for a tax number and register for VAT if required.
Step 5: After registration, you can start operations in Hungary.

How do I find suitable investment opportunities in Hungary?

Investors can explore several channels to discover opportunities in Hungary:

Startup Ecosystem Events: Participate in events like the Budapest Business Festival, Hungarian Tech Day, or the Budapest Startup Safari to meet potential startup founders and entrepreneurs.
Venture Capital Networks: Leverage connections through networks like the Hungarian Private Equity and Venture Capital Association (HVCA) and partner with local VCs to explore early-stage investments.
Government Agencies: HIPA and the Ministry of Foreign Affairs and Trade provide personalized assistance and detailed reports on investment opportunities.

What is the investment climate in Hungary?

Hungary offers an investor-friendly climate with key advantages:

EU Membership: As an EU member, Hungary benefits from access to the EU’s single market and adherence to European regulations, which provides stability for investments.
Skilled Workforce: Hungary boasts a highly educated workforce, particularly in engineering, IT, and research sectors, which is attractive for tech and innovation-driven investments.
Supportive Government Initiatives: Government-backed support in key sectors like tech, green energy, and manufacturing provides a solid foundation for investors.

How can I access data and research on Hungarian investment opportunities?

Investors can access information from the following resources:

Hungarian Investment Promotion Agency (HIPA): Provides detailed market research, sector-specific data, and guides for foreign investors.
Budapest Chamber of Commerce and Industry (BKIK): Offers valuable insights into business opportunities across various sectors.
Trade and Investment Reports: Regular reports from the European Commission, Statista, and other institutions offer comprehensive data on market trends and performance.

What legal considerations should I be aware of when investing in Hungary?

Investors should take the following legal considerations into account:

Business Regulations: Hungary offers a transparent legal framework for foreign investment, but it is advisable to consult local legal advisors for guidance.
Taxation: Corporate tax rates are low, but investors should also consider other taxes such as VAT and local taxes, which can vary by region.
Intellectual Property (IP): Hungary follows EU standards for IP protection, and it is crucial for investors in tech and creative sectors to be aware of IP laws.

What are the risks of investing in Hungary?

While Hungary presents numerous opportunities, investors should consider these risks:

Market Competition: Hungary’s tech, fintech, and automotive sectors are highly competitive, which can make it challenging to enter the market.
Regulatory Changes: Like in any market, changes in regulations, including tax policies, labor laws, and industry-specific regulations, can pose risks.

Geopolitical Risks: Hungary, located in Central Europe, can be influenced by geopolitical shifts within the EU and its neighboring regions. Monitoring political and economic developments is crucial for investors.