Why Set Up Your Business in Hungary?
Spanning over 89,608 square kilometres of land, Hungary is the 110th largest nation in the world with a population of nearly 10 million people. Bordered by seven countries – Austria, Slovakia, Ukraine, Romania, Serbia, Slovenia, and Croatia, Hungary is a landlocked country in Central Europe. In fact, the country’s position has its geostrategic significance where many people see it as the ideal logistical hub within the region and the gateway to access to nearby EU markets.
An Overview of Hungarian Economy
Hungary has the diversified free-market economy. Hungary is one of the members of the Organisation for Economic Co-operation and Development (OECD) since 1996, of the NATO (1999), and of the European Union (EU) since 2004. Over the years, economic growth is strong and steady relative to other countries in Europe after the country’s significant economic reform that includes privatization, reform of important state-supported sectors like health care, pensions, and social security, and housing supports.
Hungary’s vibrant business environment is appealing to investors across the globe. For one, Hungary’s strategic location at the heart of Europe is ideal for manufacturing, services and logistics. Hungary is the ideal base for investors who are planning cross-border business developments. For another, the highly skilled and well-educated workforce in the engineering, IT, pharmaceutical, economics, mathematics, physics and professional services sectors attracts many international investors. The automotive sector is one of Hungary’s important industries where it generates approximately 21% of total exports.
Why Invest in Hungary
On top of the good business climate and availability of various incentives, Hungary is ideal for doing business due to the following reasons:
- Strategic geographical position in the centre of Europe for manufacturing, services and logistics;
- State-of-art infrastructure;
- Competitive labor costs;
- Governmental and municipal incentives (cash subsidy, tax allowance)
- Competitive tax system
- Financial and fiscal stability
Hungary’s advantageous economic provides an exciting investment platform for business. The Hungarian government encourages foreign investors to venture into the country with its pro-business policies and incentives.
Let us take a glance at the reasons why investing in Hungary?
- Good geographical location
The strategic geographical location in the heart of Europe is ideal for foreign investors who want to expand their business portfolio in this continent. It is because the location is suitable for transport and logistics activities, or for import and export businesses. In addition, investors can access other European countries easily from Hungary. Many people see it as the ideal investment location in Europe.
- Business-friendly environment
Hungary is rising to be one of the ideal investment locations in Europe with its capital, Budapest, ranked among the top 10 most attractive cities for foreign direct investment (FDI) in Eastern Europe in the 2016-2017 ranking of FDI Magazine, a Financial Times Group publication. The Hungarian government encourages and welcomes foreign investments with a plentiful of incentives and supports.
- An attractive tax system
Hungary has advantageous taxes for companies and individuals. With the corporate income tax between 10 and 19 (lower than in other European countries like France or the United Kingdom) and the personal income tax at the flat rate of 16%, Hungary boasts the competitive tax system that appeals to foreign investors.
On a final note, Hungary is rising as one of the favoured investment hotspots in EU due to its thriving economy. If you are planning to traipse into the EU markets, Hungary has a lot to offer.