Hungary is a landlocked country in Central Europe known for its rich history, vibrant culture, and stunning architecture, including the iconic Parliament Building in Budapest. It has a unique language, Hungarian, which is unrelated to most European languages, and a deep culinary tradition featuring dishes like goulash. The country is famous for its thermal baths, folk traditions, and contributions to music, science, and sports.

Hungary has emerged as a highly attractive investment destination within CEE. Thanks to its strategic location, well-developed infrastructure, and investor-friendly policies, the country offers numerous opportunities for foreign businesses and individuals seeking to establish a presence or expand their operations.

Hungary’s combination of a competitive business climate, strategic location, and economic stability makes it a prime investment destination. Whether in real estate, industry, or innovation, foreign investors can find abundant opportunities for growth. By leveraging the country’s business-friendly environment and seeking expert legal and financial advice, investing in Hungary can be a highly rewarding opportunity.

Which are the key advantages of investing in Hungary?

• Competitive taxation – Hungary boasts the lowest corporate tax rate in the European Union at just 9%, making it an appealing choice for businesses looking to maximize profitability.

• Strategic European hub – With its central position, Hungary provides excellent access to both Western and Eastern European markets, supported by modern transportation and logistics networks.

• Highly skilled workforce – The country offers a well-educated and cost-effective labour pool, particularly in sectors such as IT, engineering, and manufacturing.

• Government incentives – Various tax benefits, grants, and investment incentives are available for foreign companies, particularly in key industries like automotive, pharmaceuticals, and technology.

• Stable business environment – As a European Union member, Hungary benefits from a transparent regulatory framework and strong economic stability.

Industrial and business sectors with strong investment potential

• Manufacturing industry – Hungary serves as a leading centre for automotive, electronics, and pharmaceutical production, with major global companies operating in the region.

• Real estate – Budapest remains a hotspot for real estate investments, with high rental yields and strong demand for residential and commercial properties.

• Technology & innovation – The country’s growing start-up ecosystem, particularly in fintech and IT, is bolstered by venture capital funding and government support.

• Tourism & hospitality – Hungary’s rich cultural heritage, world-class thermal baths, and vibrant capital city continue to attract millions of tourists annually, making this sector an excellent investment choice.

• Logistics & transportation - Hungary is an ideal choice for logistics investments due to its strategic central European location, well-developed infrastructure, access to EU markets, and growing industrial and logistics hubs.

About establishing a business in Hungary

Foreign investors can set up operations in Hungary through various legal entities, including:

• Limited Liability Company (Kft.) – A flexible and commonly used structure, offering limited liability to shareholders.

• Joint Stock Company (Zrt. or Nyrt.) – Suitable for larger enterprises looking for public or private shareholding options.

• Branch Office or Representative Office – A straightforward way for foreign companies to establish a local presence without full incorporation.

Basic information about Hungary

Official name: Hungary (Magyarország)

Capital: Budapest

Area: 93,030 km²

Population: approximately 9.6 million

Official language: Hungarian

Currency: Hungarian Forint (HUF)

Government: parliamentary republic

Time zone: Central European Time (CET, UTC+1)

EU membership: since 2004