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.

 

Business relations between the USA and Hungary

The United States is one of the most important business partners of Hungary. US is the second largest foreign investor in the country with 1,500 US companies operating in Hungary and employing close to 100,000 people and representing wide range of sectors. Some of the US multinationals in Hungary with strong presence are: General Electric, IBM, Citibank, Morgan Stanley, Exxon Mobile, Coca cola, BlackRock, Becton Dickinson, Harman Becker etc.

The USA is also a very important business partner of ours in terms of our export, as it is our most important export partner outside of the EU and the 13. in the overall ranking. In tourism perspectives the ties between the two countries are getting closer and closer as the number of tourism nights reflected a double digit growth in 2017, close to 300,000 US tourist visited Hungary in that particular year.

 

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 National Trading House (MNKH) and Eximbank 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 further increased in year 2017 with exceeding the magical EUR 100 billion.

 

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 from May 2018 Budapest is connected with direct flights to three USA cities (New York, Chicago, Philadelphia)
  • GMO is forbidden in the Hungarian Constitution, purely 100% GMO-free ingredients are available in Hungary

 

Useful links to doing business in Hungary

Useful links to doing business in the USA

Business Hungary

Business news

Hungarian Economy

Further useful links