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Invest Hungary INVEST HUNGARY OINN © Published on behalf of N the Hungarian Investment INVEST I Promotion Agency, 2016 (HIPA) HUNGARY Indeed, Hungary is a bustling business The Hungarian Investment Promotion Dear Reader, hub situated right at the very heart of Agency (HIPA) is committed to promoting Europe; physically and in historical, Hungary as a prime investment location fter the historic political changes geographical, cultural and economic and a reliable business partner. HIPA of 1989-90, Hungary’s business terms, all destinations are within easy published this brochure to introduce Aenvironment is now close to maturity. reach. As a full European Union member, the Hungarian business arena, its many With GDP growth reaching 2.9% and 7.5% businesses settling here join the EU investment opportunities, and the main year-on-year industrial growth in 2015, market of more than 500 million people. incentives the government offers to attract the economy has weathered the global FDI. The booklet provides an overview recession and it is one the most dynamic Hungary’s geography is a natural gift, one of the legal environment, available costs, economies in Central Europe. that Hungarians have learnt to use well skills, infrastructure and real estate, through their indomitable resourcefulness, introduces key industrial and service Over the last 25 years, scores of inter- flexibility and creativity. sectors, and showcases success stories national companies have based their from multinationals that have moved key manufacturing and service operations, The country offers tangible investment processes to the heart of Europe. and in some cases, European HQs and benefits to all businesses: SMEs wishing to R&D centres in Hungary, bringing in get closer to multinational buyers; global more than € 84 billion in FDI. Forty-five firms seeking safe, reliable operational Now, it’s your turn. of the world’s 80 largest multinationals, and distribution centres or shared services Just click to explore the opportunities that and many of their SME suppliers, have facilities; high-tech enterprises looking Hungary can offer your business. established a long-term presence here, to outsource clinical research, software benefiting from the advantageous development or other R&D activities; and location, a safe legal environment, an manufacturers that require access to the advanced business infrastructure, and markets of Eastern and Southeast Europe. Róbert Ésik, President, HIPA a committed labour force. 8 ABOUT HUNGARY 12 INFRASTRUCTURE 12 ON LAND, WATER & AIR / 14 LOGISTICS / 16 TELECOMMUNICATION 18 PAN-EUROPEAN CORRIDORS 20 BUSINESS ENVIRONMENT 20 OPEN ECONOMY / 22 GOVERNMENT’S MEASURES / 24 COMPETITIVE TAX SYSTEM 26 BANKING SYSTEM / 28 COMPANY ESTABLISHMENT / 30 HUMAN CAPITAL 32 LEADING UNIVERSITIES / 34 VOCATIONAL EDUCATION 38 REFERENCES 38 FDI RANKING / 40 COMPANIES 44 QUALITY OF LIFE HUNGARIAN INVESTMENT 48 50 PROFESSIONAL ASSISTANCE PROMOTION AGENCY (HIPA) 52 SECTORS / 54 INVESTMENT SITES / 56 SUPPLIER DEVELOPMENT 58 HUNGARIAN INVESTMENT PROJECTS (HIP) 60 INCENTIVES 64 TAX INCENTIVES / 66 NON-REFUNDABLE CASH SUBSIDIES 72 TRAINING SUBSIDIES / 73 SUBSIDIES FROM EU FUNDS Invest in Hungary 9 ABOUT HUNGARY YOU CAN KEY FIGURES MAKE THE MOST OF THE COUNTRY’S STRATEGIC LOCATION: LABOUR POOL STRUCTURE EASY ACCESS TO BOTH WESTERN AND EASTERN POPULATION EUROPEAN MARKETS 9,855,571 SERVICES MANUFACTURING CONSTRUCTION AGRICULTURE OTHER 64.8% 21.4% 6.5% 4.8% 2.7% Source: HCSO, 2014 STUDENTS IN TERTIARY EDUCATION GDP GDP TEACHER TRAINING OTHER SERVICES GROWTH RATE PER CAPITA & EDUCATION 2.9% € 11,000 HEALTH 2015, HCSO 2015, Eurostat & SOCIAL SERVICES ARTS & HUMANITIES 7% 8% AGRICULTURE 11% & VETERINARY 9% 3% CURRENCY €1 FORINT = 309.9 HUF TECHNICAL (2015) (HUF) ENGINEERING 20% 35.5% SOCIAL SCIENCES, 7% BUSINESS & LAW CORPORATE VAT PROFIT TAX STANDARD MATHEMATICS, COMPUTING 10% / 19% 0-27% & NATURAL SCIENCES Source: EEMMISource: Invest in Hungary 11 ABOUT HUNGARY “We decided to establish a production unit in Hungary 23 years ago. Since then AUDI KEY FIGURES HUNGARIA MOTOR Ltd. has become the biggest engine factory and one of the most modern car production plants of the world. It employs 11,411 people. The central location of Hungary, the advanced infrastructure, the stable political and economic conditions of Hungary as an industrial site and skilled workforce all contribute to the success of our company. We are at home in Hungary." Peter Kössler, Chairman of the Board of Man- agement, AUDI HUNGARIA MOTOR Ltd. GDP growth 2.9% (2015, HCSO) Unemployment Average GDP GDP / capita Inward FDI Industrial Budget rate gross earnings (PPS) (PPS) Inflation stock production balance growth: 6.8% € 800 € 183,989 18,648 -0.1% 78% -1.9% (of full-time billion (% of GDP) 7.5% (% of GDP) employees) (2015, HCSO) (2015, HCSO) (2014, HCSO*) (2014, HCSO) (2015, HCSO) (2014, MNB**) (2015, HCSO) (2015, HCSO) *HCSO = Hungarian Central Statistical Office **MNB = The National Bank of Hungary Invest in Hungary 13 INFRASTRUCTURE YOU CAN ON LAND, WATER & AIR BENEFIT FROM HIGHLY DEVELOPED LOGISTICS AND TELECOMS The country’s main international airport is in Budapest; the city of Debrecen, Győr (Pér), INFRASTRUCTURE Pécs and the town of Sármellék at Lake Balaton also operate international airports. The fact that Hungary has the third highest The country has also an extensive railway road density in Europe after Belgium and network of 7,542 km. Scheduled block trains the Netherlands is a significant competitive run to Europe’s main seaports. Záhony, the advantage. The total length of the Hungar- Hungarian border city plays a significant ian national public road network is close to role in the East-West rail transport: this 32,000 km including more than 1,680 km The Danube-Rhine-Main Canal and the is where the European standard gauge of expressways. Danube–Black Sea Canal connect Hungary railway network meets the eastern broad to Rotterdam and Constanta via Western gauge system, and the transfer takes Europe’s industrial heartland. approximately 19 to 22 days to China. Invest in Hungary 15 INFRASTRUCTURE LOGISTICS CARGO-PARTNER / DACHSER / DAMCO / US DB SCHENKER / DHL / EKOL / GEBRÜDER WEISS / GEFCO / GEODIS / GONDRAND / KUEHNE+NAGEL / LAGERMAX / LOGWIN / METRANS / PROLOGIS / THEY ARE AMONG THOSE ALREADY WHO HAVE CHOSEN VERSTEIJNEN LOGISTICS ungary’s strategic position in the heart of “Excellent people in an excellent business destina- the continent – as well as its role as one of tion - this is what Hungary means to our company. Hthe major transport junctions in the CEE We are committed to Hungary since 1968 having region – makes it increasingly important as a invested more than HUF 110 billion only in the last regional distribution centre. Hungary is an integral two decades in our production capabilities. The part of the Pan-European Transport Network production, transportation and sales of our drinks (TEN-T) and is located at the crossroads of four – including our employees– provide jobs for nearly Pan-European and two ERTMS (European Rail 13,000 people and two-thirds of the raw materials Traffic Management System) corridors, enabling used for the production of beverages are provided easy access to all parts of Europe. Major European by local suppliers. We export products to 23 coun- ports are nearby, as are the growing markets of tries so Hungary has become a major regional hub CEE, CIS and SEE. Companies can benefit from the in the Coca-Cola Hellenic group. And we are deter- outstanding efficiency and added value derived mined to go even further…” from Hungary’s superb transport infrastructure Minas Agelidis, General Manager and its long-established logistics industry. Coca-Cola HBC Hungary Invest in Hungary 17 INFRASTRUCTURE TELECOMMUNICATION 100% 3G & 4G coverage services Did you know that… ungary has a highly developed tele- viders and mobile network providers in Hungary’s mobile communications market, …the famous online presentation tool, Prezi is communications system – GSM Hungary. The telecoms market, particu- like that of its Central European counter- a Hungarian invention and has already more H900/1,800 MHz mobile frequen- larly the mobile and broadband sectors, parts, is maturing. Services are available from than 50 million users worldwide? cies providing 100% physical coverage, became more dynamic after Hungary’s three operators, all of which are majority or and widespread 3G mobile coverage. 2004 EU accession: membership saw an fully owned by Western European opera- The telecoms market is fully liberalised: injection of funding as well as increased tors. Mobile data usage is increasingly there are numerous internet service pro- regulatory oversight. popular: all three operators have launched 3G & 4G services and a variety of mobile content and applications is available. Invest in Hungary 19 INFRASTRUCTURE PAN-EUROPEAN CORRIDORS MOTORWAYS IN HUNGARY COMMERCIAL CORRIDORS V M1: Budapest – AUT AND INFRASTRUCTURE IV M3: Budapest – RO/UKR/SK IN HUNGARY VII M5: Budapest – SRB M6: Budapest – Pécs IV M7: Budapest – SLO V VII X PAN-EUROPEAN CORRIDORS CROSSING HUNGARY IV: Dresden – Prague – Vienna – Bratislava – Győr – Budapest – Arad – Bucharest – Sofia – Thessaloniki – Istanbul V: Venice – Trieste – Ljubljana – Maribor – Budapest – Uzhhorod – Lviv – Kiev VII: Vienna – Bratislava – Budapest – Belgrade – the Black Sea X: Salzburg – Ljubljana – Zagreb – Beograd – Niš – Skopje – Veles – Thessaloniki LEGEND Did you know that…? existing planned …Hungary lies at the cross- roads of four Pan-European transportation
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