Hungary foreign Investments incentives

Home/Hungary Taxes/Hungary foreign Investments incentives

Hungary foreign Investments incentives





Hungary Encouragement Laws



Investment Encouragement Laws for Foreign Investors in Hungary (2025)

  • Legal Framework for Foreign Investment
    • Hungary encourages foreign investment through various laws and incentives. The key regulations governing foreign investments include:
    • Act XXIV of 1988 on the Investment of Foreigners in Hungary – Provides equal treatment for foreign and domestic investors.
    • Act LXXXI of 1996 on Corporate Tax and Dividend Tax – Defines tax benefits and deductions for businesses.
    • Government Decree 210/2014 (VIII.27.) on Strategic Investments – Simplifies the investment process for certain large-scale projects.
    • Act LVII of 2018 on the Control of Foreign Investments – Regulates foreign ownership in strategic sectors for national security reasons.
  • Investment Incentives
    • Hungary offers financial and tax-related incentives to attract foreign investors:
      • 1. Corporate Tax Benefits
        • Hungary has a flat corporate tax rate of 9%, the lowest in the EU.
        • Tax deductions for R&D, investment in tangible assets, and employment creation.
      • 2. Cash Subsidies
        • Direct cash grants available for large investments based on job creation and capital expenditure.
        • Government-backed non-refundable subsidies for specific industries (e.g., manufacturing, R&D, innovation).
      • 3. Development Tax Allowance
        • Companies making a minimum investment of EUR 3 million (lower in some regions) can receive up to 80% corporate tax reduction for a period of up to 13 years.
      • 4. Job Creation Subsidies
        • Employers hiring in disadvantaged regions can receive wage subsidies and social contribution tax exemptions.
      • 5. EU and Domestic Grant Programs
        • Hungary benefits from EU structural funds, offering grants for infrastructure, R&D, and innovation projects.
        • The Hungarian Investment Promotion Agency (HIPA) facilitates access to these grants.
      • 6. Special Economic Zones (SEZs)
        • Designated Industrial Parks and Free Enterprise Zones offer tax relief, streamlined licensing, and infrastructure support.
    • Strategic Investment Sectors
      • Hungary prioritizes investment in:
        • Automotive and electronics manufacturing
        • Pharmaceuticals and biotechnology
        • Information technology and shared service centers
        • Renewable energy and green technologies

Conclusion

Hungary offers a business-friendly investment environment through low corporate tax rates, financial incentives, and government-backed support programs.
Foreign investors can benefit from various subsidies and tax allowances, particularly in strategic industries.



Austria foreign Investments incentives | Bulgaria foreign Investments incentives | China foreign Investments incentives | Cyprus foreign Investments incentives | Czech R. foreign Investments incentives | Estonia foreign Investments incentives | Finland foreign Investments incentives | Germany foreign Investments incentives | Greece foreign Investments incentives | Hungary foreign Investments incentives | India foreign Investments incentives | Ireland foreign Investments incentives | Israel foreign Investments incentives | Italy foreign Investments incentives | Japan foreign Investments incentives | Latvia foreign Investments incentives | Lithuania foreign Investments incentives | Malta foreign Investments incentives | Poland foreign Investments incentives | Portugal foreign Investments incentives | Romania foreign Investments incentives | Russia foreign Investments incentives | Serbia foreign Investments incentives | Slovakia foreign Investments incentives | Slovenia foreign Investments incentives | Turkey foreign Investments incentives