Investment and Trade
Throughout the world, Hungary is known for her extensive list of Nobel Prize laureates, Rubik’s Cube (also known as the Magic Cube) or her delicious cuisine and wines. No wonder we are proud, when seeing you write with a ballpoint pen (invented by László Bíró in 1931), taking your Vitamin C pills (Albert Szent-Györgyi, 1932), or lighting a candle with a safety match (János Irinyi, 1836). These are just a few examples that Hungary has proved her talent for centuries, and Hungarians do magical things today as well. Introducing our revolutionary thinking, great inventions, and acknowledged results is a great pleasure and a strong commitment of ours.
However, we might also be proud of present times not only our past. Due to the most recent changes and developments, the economic growth in Hungary stepped into a balanced stage and it is on a sustainable growth path. The vulnerability of the country decreased dramatically since 2010, and based on the disciplined fiscal policy, the sustainably low budget deficit, decreasing debt ration, phasing out of FX loans as well as many other accomplishments, all three major credit rating agencies upgraded Hungarian government bonds to investment grade. Besides the personal income tax rate being 15%, Hungary also introduced a flat tax in corporate income tax rate at 9% thus making Hungary the second most competitive country in terms of taxes on corporate turnover among OECD countries, trailing only top- ranked Switzerland.
Businessmen, investors, startuppers, and multinational companies tend to initiate their businesses in Budapest and Hungary, among many other reasons due to the excellent quality of work force, the country’s central location and the lower wages and office rental prices compared to Western Europe or the United States. Over the last 25 years numerous international companies have based their manufacturing or service operations, and in some cases even their European headquarters or research and development centres in Hungary. 45 of the world’s 80 largest multinational companies and many of their SME suppliers have established a presence in our country benefiting from the advantageous location, the safe legal environment, the highly skilled workforce, and the advanced business infrastructure.
The Hungarian Investment Promotion Agency – HIPA and the Hungarian National Trading House offer high quality professional services for investors and exporters supporting the Government’s investment promotion targets and fostering bilateral international trade relations.
HIPA seeks and maintains contacts with potential foreign investors, helping them to prepare and implement strategic investment decisions, as well as providing post-decision support and encouraging their intention to re-invest. HIPA also offers company and sector-specific consultancy, recommends locations, and organises site visits. Furthermore, the Investment Promotion Agency acts as a mediator between large international companies and Hungarian firms to facilitate supplier relationships, organising supplier training, and maintaining active contact with trade associations, particularly in the automotive and electronics sectors. Meanwhile, the main targets of the Trading House are to support Hungarian enterprises, which are capable of exporting goods and services; and to find adequate international business partners for them. Also, in cooperation with its subsidiary trade houses established in various target countries, the Trading House monitors and assesses the market conditions of the specific country, in order to explore potential business opportunities for Hungarian companies.
For further information contact the Economic, Investment, and Trade Section of the Embassy of Hungary:
46 Eaton Place, SW1X 8BY, London