PROMOTING ENTREPRENEURSHIP (Hungarian Investment Promotion Agency), Invest in Hungary leaflet
Examples for simplifications: e.g. time of setting up a business, flat corporate income tax rate, simplified taxes (KIVA, KATA)

Ministry of Finance:
National Tax and Customs Administration of Hungary:

In 2017 a flat corporate income tax replaced the former progressive system in Hungary. The tax rate amounts to 9%.
Local business tax is maximum 2%, the innovation contribution is 0.3%.
The general VAT rate is 27%, reduced rates are 18% (e.g. bread, cereals, some dairy products, commercial accommodation services) and 5% (e.g. meat, egg, fish, journals, books, pharmaceuticals, medical appliances, internet and district heating services). VAT-exempt services are mainly financial, banking, insurance, healtcare, education, sport, postal, certain investment related services, sale and rental of real estate.

There is a wide range of tax allowances for new investments and R&D. Hungary provides tax exemption on holding structures, capital gains on shares and intellectual property under certain conditions are tax free, and a 50% tax allowance is applicable on royalty incomes. There is no withholding tax on dividends, interest and royalty paid by a Hungarian company to a foreign company. Hungary has a wide international treaty network with more than 80 double tax treaties.

Ministry for Innovation and Technology, Departement for Enterpirse Development:

Széchenyi 2020: support from EU Structural Funds and Cohesion Fund,

Hungarian Development Bank: favourable loans or combined loan programmes,

Széchenyi Venture Capital Fund Management: altogether manages about HUF 71 billion, which is invested in companies with growth potential to develop Hungarian SMEs and to put them on a long term growth path:

Hungarian Export-Import Bank Plc. (Eximbank):

Széchenyi Card: credit card, short term and long term credit:

Credit guarantee programme: and (agrarian credit guarantee)

  • Industrial Parks: 196 industrial parks altogether, of which about 120 locations are available for new investments
  • title holder: local government or enterprise with legal personality
  • ca. 4.000 companies settled in
  • employ more than 180,000 people
  • produce 30% of industrial output

Outline benefits that the business zones offer to entrepreneurs and potential investors:

  • basic infrastructure needed for production (energy, water, waste-water treatment),
  • through related technological work stages, the evolution of professional co-operation in order to cut production costs,
  • a wide range of other quality services: Logistic services, Waste collection,
  • public transport, maintenance and security services, Counseling Services


  • Ministry for Innovation and Technology
  • Association of Industrial, Innovation and Scientific Parks, (HU)

Hungarian Chamber for Trade and Industry:

MFB, Hungarian Development Bank:

IFKA Public Benefit Non-Profit Ltd. for the Development of Industry:

SEED Foundation for Small Enterprise Economic Development:

Széchenyi Venture Capital Fund:

Hungarian Export-Import Bank Plc. (Eximbank):


Offered services: mentoring, consultancy, training, financial assistance

Hungarian Investment Promotion Agency:

Highly skilled workforce, access to world class universities, an advantageous location, qualified suppliers, advanced business infrastructure, corporate income tax to a 9% flat rate;

Hungary introduced new forms of cash incentive measures in January 2017 to enhance corporate R&D activities, and the realization of technology intensive investments.

A VIP cash subsidy (subsidy based on individual government decision) may be granted under current legislation based on Government Decree No. 210/2014. (VIII.27.) on the utilisation of investment incentive targeted appropriations.

VIP cash subsidy on a job creation basis.

Széchenyi 2020 development programme: : website of the Hungarian Government, access to all the ministries : Hungarian Investment Promotion Agency