Business and investment environment in Hungary. H-1055 Budapest, Honvéd utca
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1 Business and investment environment in Hungary
2 Incentives overview I. Incentives for investment (regional aid) Cash grants VIP cash subsidy Job creation subsidy EU co-financed tenders Local subsidy granted bymunicipality Tax allowances Development tax allowance II. Incentives for training Cash grants Training subsidy Workshop establishment subsidy III. Incentives for R&D&I Cash grants VIP cash subsidy EU co-financed tenders Tax allowances R&D&I tax allowances IV. Incentives for employment Tax allowance Social tax allowance Vocational training contribution allowance Maximum intensity (for large enterprises)
3 VIP cash subsidy Asset based - Non-refundable Type of subsidy - Post-financed cash grant - Provided based on thedecision of thegovernment - Managing body: HIPA Legal background, application - Submission of the Request List is required - According to Gov. Decree 210/2014. (VIII. 27.) Eligible costs* Eligibility, undertakings Developed counties: min. EUR 20 million volume and min. 100 new jobs created (Győr-Moson-Sopron, Komárom-Esztergom, Fejér, Pest) Preferred counties min. EUR 10 million volume and min. 50 new jobs created (Vas, Zala, Veszprém, Somogy, Baranya, Tolna, Bács-Kiskun, Csongrád, Jász-Nagykun-Szolnok, Hajdú-Bihar, Heves, Borsod-Abaúj-Zemplén) Most preferred counties min. EUR 5 million volume and min. 50 new jobs created (Nógrád, Szabolcs-Szatmár-Bereg, Békés) Tangible Land Fee charged for leasing property Machinery, equipment No limit Vehicles Intangible Intellectual properties Rights representing Max. 50% of *Based on of Act C of 2000 on accounting.
4 VIP cash subsidy Technology-intensive investment - Non-refundable Type of subsidy - Post-financed cash grant - Provided based on thedecision of thegovernment - Managing body: HIPA Legal background, application - Submission of the Request List is required - According to Gov. Decree 210/2014. (VIII. 27.) Eligibility, undertakings All regional areas: - min. EUR 30 million investment volumewithin 3 years - 30% increase of base revenue or total base gross wage or thetwo combined within a three-year-longperiod - For large enterprises employing more than 250 people in Hungary - the maximum amount of the grant is 25% of the adjusted maximum aid intensity Eligible costs* Tangible Land Fee charged for leasing property Machinery, equipment Vehicles Max. 25% of No limit Intangible Intellectual properties Rights representing Max. 15% of *Based on of Act C of 2000 on accounting.
5 VIP cash subsidy for R&D projects - Non-refundable Type of subsidy - Post-financed cash grant - Provided based on the decision of thegovernment - Managing body: HIPA Legal background, application - Submission of the Request List is required - According to Gov. Decree 210/2014. (VIII. 27.) and Act LXXVI. of 2014 Eligible costs* Eligibility, undertakings Throughout Hungary (maximum intensity 25%): For large enterprises only - min. EUR 3 million of eligible costs during a minimum one-year long and maximum three-year-long period - Increase of R&D headcount by 25 employees: the employee shall work in the R&D project in at least 50% of the work time directly or indirectly, and the ratio of employees with higher education shall reach at least 50% - Monitoring period: min. 2 years - Submission of certification regarding the R&D project by HIPO is required for disbursement Depreciation Buildings Instruments and equipment Personnel costs of researchers and developers No limit Fee charged for leasing property Costs of material Max. 25% of *Based on of Act C of 2000 on accounting.
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