Leading the EV revolution
- Alongside the more than 700 automotive companies, Hungary is the only country to host EV focused production units of 3 premium car manufacturers (BMW, Mercedes, Audi) in Europe besides Germany
- As of 2023 Hungary has the 4th largest battery manufacturing capacity globally and will have the 2nd largest capacity as soon as all production plants (Samsung SDI, SK Innovation, CATL, GS Yuasa, Toray, Sunwoda, Huayou Cobalt, EVE Power) will be operational in the coming years
Providing outstanding services
- In the business service sector more than 150 companies (BlackRock, Morgan Stanley, IBM, Citi, MetLife, Google, Diligent, ExxonMobil, Cloudera, Oracle) employ more than 70,000 people due to the highly skilled, multilingual, and educated workforce at a competitive cost
- These companies focus on complex and high value added activities (R&D and innovation, software development, AI, data science, cloud, cyber security) as well as accounting, HR, and payroll
Doing Business in Hungary – Investment and Trade
Throughout the world, Hungary is known for her extensive list of Nobel Prize laureates, Rubik’s Cube (also known as the Magic Cube) or her delicious cuisine and wines. No wonder we are proud, when seeing you write with a ballpoint pen (invented by László Bíró in 1931), taking your Vitamin C pills (Albert Szent-Györgyi, 1932), or lighting a candle with a safety match (János Irinyi, 1836). These are just a few examples that Hungary has proved her talent for centuries, and Hungarians do magical things today as well. Introducing our revolutionary thinking, great inventions, and acknowledged results is a great pleasure and a strong commitment of ours.
However, we are also proud of present times not only our past. Due to the efforts and developments of the last decade, the economic growth in Hungary stepped into a balanced stage (4,6% vs 3,6% EU average in 2022). The vulnerability of the country decreased dramatically since 2010, and based on the disciplined fiscal policy, the sustainably low budget deficit, decreasing debt ration, phasing out of FX loans as well as many other accomplishments, all three major credit rating agencies upgraded Hungarian government bonds to investment grade. Besides the flat personal income tax rate being 15%, Hungary also introduced a flat tax in corporate income tax rate at 9% thus making Hungary the most competitive country in terms of taxes on corporate turnover among OECD countries. All the above enabled the Hungarian economy and business environment to be among the most resilient ones during the COVID-pandemic.
Multinational companies and startups alike tend to establish their businesses in Budapest and Hungary, among many other reasons due to the excellent quality and quantity of talent pool, the country’s central location in the European Union accessing a market of 450 million people. Over the last 25 years numerous international companies have based their manufacturing or service operations, as well as research and development centres in Hungary.
Bilateral business relations are flourishing, 1700 US-owned companies have established a presence in our country employing more than 100,000 employees. These businesses benefit from the advantageous location, the safe legal environment, the highly skilled workforce, and the advanced business infrastructure. As of 2023, the Hungarian Government has signed strategic cooperation agreements with 14 US companies. Proving the resilience of our business relations, during the pandemic 22 US companies initiated FDI projects supported by the Hungarian Government in the fields of technology, manufacturing, as well as the food industry. US businesses such as Coca-Cola, BlackRock, Morgan Stanley, Citibank, IBM, ExxonMobil, Ford, Dana, BorgWarner, Eaton, Arconic and Howmet Aerospace all utilize the unique talent pool, the favourable business environment as well as the support from the Government to grow bigger in headcount and introduce new, higher value added workflows.
INVESTING IN HUNGARY
The Hungarian Investment Promotion Agency – HIPA offers high quality professional services for investors supporting the Government’s investment promotion targets. HIPA seeks and maintains contacts with potential foreign investors, helping them to prepare and implement strategic investment decisions, providing applicable incentive packages, as well as post-decision support and encouraging their intention to re-invest. HIPA also offers company and sector-specific consultancy, recommends locations, and organises site visits. Furthermore, the Agency acts as a mediator between large international companies and Hungarian firms to facilitate supplier relationships, organising supplier training, and maintaining active contact with trade associations, particularly in the automotive and electronics sectors.
The key investment sectors:
TRADING IN HUNGARY
The Hungarian Export Promotion Agency – HEPA offers high quality professional services for exporters and fostering bilateral international trade relations. The main goal of HEPA is to support Hungarian enterprises, which are capable of exporting goods and services and find adequate international business partners for them. Following the EU, the United States is the second largest export market for Hungarian companies. Between 2010-2022 bilateral trade grew altogether with 135,8%. In 2022 Hungary's exports to America reached USD 5.3 billions, increasing 173.6% in twelve years.
- AGRICULTURE
- CONSTRUCTION AND ENVIRONMENT
- FOOD
- HEALTH
- ICT
