Hungary is an OECD high-income mixed economy country with very high human development index and skilled labor force -as we can find this information on the internet in a few minutes of searching. Such as: being  an export-oriented market economy with a heavy emphasis on foreign trade, thus the country is the 36th largest export economy in the world.

Hungary continues to be one of the leading nations for attracting foreign direct investment in Central and Eastern Europe, the inward FDI in the country was 119.8 billion USD in 2015, while Hungary invest more than 50 billion USD in abroad. The financial and business capital of Hungary is Budapest. It is a significant economic hub, classified as an Alpha-world city in the study by the Globalization and World Cities Research Network and it is the second fastest-developing urban economy in Europe.

The financial crisis hit Hungary (medium-)hard, making the country enter a severe recession of -6.4%, one of the worst economic contractions in its history. We can realize signs of recovery from 2011 with decreasing tax rates and a moderate 1.7 percent GDP growth.

Hungary is located in the middle of Europe and is a kind of gate between East and Central- Europe, also member of the Schengen area. By developing a great infrastructural network it is connected to all the neighbour countries such as to all the other European countries. For investors especially for third country citizens who are about starting a business in Hungary, this country is a great choice because of its optimal distance from the other EU members and from the non-EU member countries too.

Its annual GDP growth was close to 4% in 2014 and almost 3% in 2015. Growth is projected to moderate (around 2-2,5%) in 2016 because of a temporary fallback in public investments as a new cycle of EU structural funds commences, but should get higher again soon as in the next four years 20 billion EUR will arrive to Hungary in tenders.

Red tape is being cut year by year. And even if the labor related taxes are high, people are allowed working as private entrepreneurs, and choosing a special taxation method, up to a yearly 6 M HUF income they can pay only 10% of tax after their incomes.

As for the taxes: companies’ taxes are a maximum of 2% of Local Business Tax and 10% or 19% of Corporate Tax (under and above 500 M HUF of tax base). The levied 27% of VAT –except of some instances- is 100% reducible with the VAT amount of your company’s expenses.

Hungary signed Double Taxation Treaties with about 80 countries.

The Government founded the HIPA what is an obvious sign that it welcomes FDI. What’s more in case of some fields encourages investors. The Government’s key sectors are Automotive Industry, Electronics, Shared Service Centers, Information and Communications, Food industry, Life Science, Logistics and Renewable energy. Above this R&D activities might gain extra incentives as support.

Comparing to the Western-European countries in Hungary the wages are quite low. Still, the people are well trained and more and more young people realize the importance of learning foreign languages. That’s why for investors employing Hungarian work force makes this country very competitive.

For third country investors we strongly suggest to participate Europe’s most attractive investment bond program. With it the investor will gain residency permit for his family members as well under one procedure. And above this they will be able travelling in the Schengen Zone unlimitedly.

Economy in Hungary can be described as an OECD high-income mixed economy. The country has a very high human development index and skilled labour force -as we can find this information on the internet in a few minutes of searching. Such as: being an export-oriented market, economy in Hungary has a heavy emphasis on foreign trade, thus the country is the 36th largest export economy in the world.

Hungary continues to be one of the leading nations for attracting foreign direct investment in Central and Eastern Europe, the inward FDI in the country was 119.8 billion USD in 2015, while Hungary invest more than 50 billion USD in abroad. The financial and business capital of Hungary is Budapest. It is a significant economic hub, classified as an Alpha-world city in the study by the Globalization and World Cities Research Network and it is the second fastest-developing urban economy in Europe.

The financial crisis hit Hungary (medium-)hard, making the country enter a severe recession of -6.4%, one of the worst economic contractions in its history. We can realize signs of recovery from 2011 with decreasing tax rates and a moderate 1.7 percent GDP growth.

Hungary is located in the middle of Europe and is a kind of gate between East and Central- Europe, also member of the Schengen area. By developing a great infrastructural network it is connected to all the neighbour countries such as to all the other European countries. For investors especially for third country citizens who are about starting a business in Hungary, this country is a great choice because of its optimal distance from the other EU members and from the non-EU member countries too.

Its annual GDP growth was close to 4% in 2014 and almost 3% in 2015. Growth is projected to moderate (around 2-2,5%) in 2016 (economy in Hungary was growing only by 0,9% in Q1 of 2016) because of a temporary fallback in public investments as a new cycle of EU structural funds commences. An other reason was the slowing down of the automotive sector.

The numbers and values should get higher again soon as in the next four years 20 billion EUR will arrive to Hungary in tenders. These expectations are also premised by the number of flat and house building permits which had jumped in the last year. Two other fundaments might be the (slowly) increasing salaries and the low oil price, which might bring modest inner demand.

The key-question is the ratio of the export. The higher export is going to be reached the better numbers the economy in Hungary will show. For this improvement in the production industry is inevitable.

Red tape is being cut year by year. And even if the labor related taxes are high, people are allowed working as private entrepreneurs, and choosing a special taxation method, up to a yearly 6 M HUF income they can pay only 10% of tax after their incomes.

As for the taxes: companies’ taxes are a maximum of 2% of Local Business Tax and 10% or 19% of Corporate Tax (under and above 500 M HUF of tax base). The levied 27% of VAT –except of some instances- is 100% reducible with the VAT amount of your company’s expenses.

Hungary signed Double Taxation Treaties with about 80 countries.

The Government founded the HIPA what is an obvious sign that it welcomes FDI. What’s more in case of some fields encourages investors. The Government’s key sectors are Automotive Industry, Electronics, Shared Service Centers, Information and Communications, Food industry, Life Science, Logistics and Renewable energy. Above this R&D activities might gain extra incentives as support. In 2015 more than eleven thousand workplaces had been created by FDI. (By the EY Destination Europe research.)

Comparing to the Western-European countries in Hungary the wages are quite low. Still, the people are well trained and more and more young people realize the importance of learning foreign languages. That’s why for investors employing Hungarian work force makes this country very competitive.

For third country investors we strongly suggest to participate Europe’s most attractive investment bond program. With it the investor will gain residency permit for his family members as well under one procedure. And above this they will be able travel in the Schengen Zone unlimitedly.

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