One of the competitive advantages Hungary has compared to other countries in the region is the government’s strong commitment to streamlining business processes and to increasing the competitiveness of both SMEs and large enterprises in Hungary through a wide range of available incentives.
Both refundable and non-refundable incentives are available to investors coming to or expanding in Hungary. The main types of incentives related to investments are cash subsidies (either from the Hungarian Government or from EU Funds), tax incentives, low-interest loans, or land available for free or at reduced prices. The regulations on incentive opportunities are in accordance with EU rules.
Hungary is situated in the heart of Europe, which makes the country optimal for manufacturing, services and logistics. Hungary is the ideal base for investors who are planning cross-border business developments. Foreign capital is, in a large part, attracted by the highly skilled and highly educated labour force, particularly in the engineering, IT, pharmaceutical, economics, mathematics, physics and professional services sectors. Around two-thirds of the workforce in Hungary has completed a secondary, technical or vocational education.
The average wages in Hungary are ca. 60% less than the average of the EU 27, which makes the Hungarian workforce highly competitive. High English proficiency (90% of students speak English) and high number of working hours/year make Hungarians a highly efficient workforce.
Beside the favourable business climate and availability of various incentives, Hungary is an ideal place for doing business for a series of other reasons:
- ideal geographical position in the centre of Europe for manufacturing, services and logistics;
- excellent infrastructure, ready-made industrial sites, offices and science parks;
- good balance of labour costs and quality;
- governmental and municipal incentives (cash subsidy, tax allowance)
- investment friendly economic policy
- competitive tax system
- financial and fiscal stability
- success in reducing public debt