Hungary boasts a strategic location in the European Union, and the idea of investing in Hungary has gained traction recently due to government efforts to create an investment-friendly environment that supports economic growth and offers numerous incentives and grants. This has made Hungary a desirable destination for a wide range of investors.

Hungary joined the European Union in 2004, facilitating access to the single European market and receiving financial support from EU funds. This support has contributed to the development of infrastructure and the improvement of public services. In 2007, Hungary became part of the Schengen Area, allowing for free movement between most EU countries and expanding opportunities for Investing in Hungary.

Why Consider Investing in Hungary Now?

The main reason today is the announcement of the reopening of Golden Visa in Hungary and the reception of applications at the beginning of July.

Hungary is an emerging investment environment, offering a prime opportunity to capitalize on this phase and start a business in Europe that can reap rewards in the coming years, especially with the provision of numerous incentives and competitive advantages. The reopening of the Golden Residence program adds another attractive aspect.

Key Sectors for Investing in Hungary:

• Automotive Industry:
  Hungary accounts for 40% of Europe’s automotive production, hosting branches of major car manufacturers like Audi and Mercedes. There is also significant interest in transitioning to electric vehicles, aking this an important sector for those considering investment in Hungary.
• Information and Communication Technology:
  Hungary is an emerging center for information technology, attracting companies that offer AI and data analysis services. The country also offers high-standard educational services and competitive labor costs.
• Real Estate and Construction:
  The real estate sector in Hungary, especially in Budapest, has seen notable development in recent years, offering advanced services in building new projects, particularly high-quality office spaces.
• Agriculture and Food Services:
   With fertile agricultural land, Hungary is a leading European exporter of agricultural and food products. This sector presents a successful investment opportunity, including organic farming and the use of biotechnology to enhance production.
• Renewable Energy:
  Hungary is working on reducing carbon production and supporting investments in renewable energy projects such as solar and wind power. The government offers necessary incentives and grants to support this plan and facilitate the path for investors in this sector.

Strengths to Leverage When Investing in Hungary:

1. Geographical Location:
   Hungary is a gateway for companies to the European market, with borders with Austria, Slovenia, and Ukraine, facilitating commercial cooperation.

2. Competitive Workforce:
   Hungary has a highly skilled workforce, particularly in technical fields like engineering and sciences, along with competitive wages, providing access to a qualified labor force.

3. Quality of Services:
   Hungary offers high standards of daily life services, with a good cost of living compared to other EU countries.

4. GDP Growth:
   Hungary is experiencing significant GDP growth.

5. Tax Advantages:
   Hungary provides competitive tax rates for investment companies to support investments.

Investing in Hungary and its main tax benefits:

• Tax Exemption: this includes a corporate tax rate of just 9%, which is the lowest among EU countries.

• Financial Grants: investors can receive direct grants to support construction projects, technology, and projects that create new job opportunities, with the grant percentage varying based on the project’s size and impact.

• Solutions for Large Investments: Hungarian authorities provide specialized incentives that support infrastructure for large investment projects, offering the necessary facilities for foreign investors, including personal assistance from government agencies.

Types of Tax Rates Investing in Hungary:

• Corporate Income Tax: only 9%, the lowest in the EU.
• Value Added Tax (VAT): up to 27%, with exemptions for several goods and services.
• Personal Income Tax: fixed at 15%, one of the lowest rates in Europe.
• Property Tax: based on location, type, and size.
• Social Security Tax: totaling 33% between employees and employers.
• Taxes on Foreign Companies: treated like local companies, with reduced double taxation.

Investing in Hungary is a strategic step, offering investors a wide range of diverse and profitable opportunities in an environment that supports innovation and growth.