Incentives in Hungary

Creating new jobs, developing Hungarian businesses to reach new markets, and investment promotion for foreign investors.
These are the aims of Hungary.

Cost efficiency, high human capital productivity and business-friendly environment.
These are waiting for you in Hungary.

The Hungarian Government is committed to ease doing business, to increase the competitiveness of both SMEs and large enterprises in Hungary. The focus is on high value added activities, like shared service centers, research and development, high value added production.

What can Hungary offer you?

Skilled, cost efficient and the most productive labor force in Central and Eastern Europe, excellent infrastructure and at last but not least the Hungarian Government grants financial assistance to companies that decide to realize their investments in this business-friendly country.

What can HITA offer you?

The Hungarian Investment and Trade Agency (HITA) support investments aiming to establish new facilities with a one-stop-shop service.

As part of the support package, HITA undertakes all-inclusive project management for projects granted direct cash subsidies (EKD) by a discretionary government decision, provides V.I.P. treatment and comprehensive information about other subsidies available for high-value investment projects.

Within the organization of HITA, Incentives Division provides the following incentive services:

• Tailor made incentive information based on the project parameters on all available subsidies; personal negotiations and guidance for large investors.
• V.I.P. services for investors implementing large investment projects worth at least EUR 10 million in case subsidy based on individual government decision is applicable
• Information on „executive permitting investment status” for large investment projects, and assistance on launching the application procedure
• Dedicated incentive consultant for each and every large investor
• As the authorized organization of the Hungarian Government, we guarantee full scale assistance and smooth incentive procedures

One stop shop by HITA

Tailor-made incentive solutions covering various granting authorities
Negotiations and processes with all relevant authorities coordinated by HITA

For further information please contact:

Mrs. Györgyi Somfalvi-Petényi
Head of Incentives Department
Phone: +36-1-872-6515, E-mail: investment@hita.hu

Maximum regional intensity

As the member of the European Union, Hungary can offer a broad scale of subsidies. An investment of a large enterprise – depending on the location – can be entitled to receive state subsidies of up to 50% of the eligible costs of the investment.

The legal basis for all investment subsidies within Hungary is provided by common legal framework of the European Union. Following maximum regional subsidy intensity ratios have been set by the European Commission:

For investments not exceeding EUR 50M the maximum intensity ratio is increased by 10 percentage points for medium-sized and by 20 percentage points for small enterprises. For criteria determining SME categories see table below:

Subsidy for large investment projects is also subject to an adjusted regional aid ceiling, on the basis of the following scale:

Incentives for investment projects
Incentive Package may consist of the following elements:

1.  EU co-financed tenders

below EUR 25 M

Type: cash, non-refundable, post-financed
Amount of subsidy: max. 35%, app. EUR 0,37 – 3,7 M (min. 100 – max. 1.000 M HUF)
Conditions: investment volume min. EUR 1 M
(270 M HUF), new jobs or increasing personal related costs, outside Central Hungarian Region
Application: tender package shall be submitted to Hungarian Center for Economic Development
Provider of incentive: National Development Agency

2. Subsidy based on individual Government decision

above EUR 10 M and no EU funds are available
or above EUR 25 M

Type: cash, non-refundable
Amount of subsidy: decided individually by the Hungarian Government
Conditions: min. 50 new jobs (25 in preferred regions)
Application: „request list” containing core investment data shall be submitted to HITA, official subsidy offer of the Hungarian Government in short deadline
Provider of incentive: Hungarian Government

3.  Development tax allowance

Type: tax allowance for post-investment period
Amount of subsidy: exemption for 80% of the corporate tax payable for 10 years following installation. Up to HUF 500 M turnover the corporate tax rate is 10%, above HUF 500 M the tax rate is 19%.
Conditions: investment volume min. HUF 3 B (EUR 11.3 M), min. 150 new jobs OR HUF 1 B (EUR 3.7 M) investment volume and 75 new jobs in preferred regions
Application: depending on investment volume request or application needs to be submitted
Provider of incentive: Ministry for National Economy

4. Training Subsidy

Type: cash subsidy, non-refundable
Amount of subsidy: 25-90% of eligible training costs, max. EUR 1M (HUF 270 M) if job creation is between 50-500, max. EUR 2 M (HUF 530 M) if job creation 500
Conditions: cash subsidy based on individual Government decision is granted; min. 50 new jobs
Application: letter of intent needs to be submitted to HITA
Provider of incentive: Ministry for National Economy

5.  Job creation subsidies

Option 1

Type: cash subsidy, non-refundable
Amount of subsidy: HUF 340 M (EUR 1.26 M) per project
Conditions: cash subsidy based on individual Government decision is granted; in preferred or most preferred locations; min. 500 new jobs.
Application: letter of intent needs to be submitted to HITA
Provider of incentive: Ministry for National Economy

Option 2

Type: cash subsidy, non-refundable, only for SME’s
Amount of subsidy: HUF 1.2-2.2 M (EUR 4,400-8,150) per new job
Conditions: min. 2 new jobs
Application: February - March every year, through the relevant regional labour office
Provider of incentive: Ministry for National Economya