Hungary, an ideal location to do business

Hungary is a bustling business hub situated right at the very heart of Europe; physically and in historical, geographical, cultural and economic terms, all destinations are within easy reach. As a full member of the European Union, companies coming to do business in the country join the EU market of more than 500 million people. Hungary is an open economy and particular emphasis is placed on encouraging foreign direct investment. Forty-five of the world’s 80 largest multinational companies and many of their SME suppliers have established a long-term presence in Hungary, benefiting from the highly skilled workforce, access to world-class universities, an advantageous location, qualified suppliers, and from an advanced business infrastructure. Investors do not simply regard Hungary as an ideal production location but also as a remarkable “advanced manufacturing & innovation centre" of Europe. This trend is in line with Hungary’s intention to further increase the number of investments generating high added value: in addition to the “Made in Hungary” type of projects, increasing emphasis is put on “Invented in Hungary” type of investments. Besides reducing the corporate income tax to a 9% flat rate, Hungary introduced new forms of cash incentive measures to enhance corporate R&D activities and the realization of technology-intensive investments.

 

Business relations between Denmark and Hungary

As far as investments from Denmark to Hungary are concerned, Danish multinational companies, representing wide range of sectors are constantly investing and expanding. The biggest Danish employers who have already chosen Hungary are:  Abacus Medicine, Balyfa, Coloplast, First Farms, Foss, Grundfos, Hartmann, JYSK, LEGO, Nilfisk, Rockwool International, Velux, Vestfrost, Xellia Pharmaceuticals.

Denmark is also an important business partner of ours in terms of our export, as the figures are constantly increasing. Two-thirds of the Hungarian export to Denmark is coming from machinery, transport vehicles and processed products such as chemical goods and medicines.

The tourism figures have also shown continuous improvement in the past years. In 2019, more than 137 000 tourists visited Hungary from Denmark, mainly Budapest and the Lake Balaton regions, spending almost 812 000 nights in the country, while in 2020 – in spite of the pandemic – 59 000 tourists spent 478 000 nights.

 

Foreign Trade focused foreign policy, a combination of dedicated institutions to facilitate deals

An institutional triangle was created headed by H.E. Péter Szijjártó, Minister of Foreign Affairs and Trade to support the foreign trade focused foreign policy of the Hungarian Government. The triangle of the Hungarian Investment Promotion Agency (HIPA), the Hungarian Export Promotion Agency (HEPA) and the Hungarian Export-Import Bank (EXIM) operates outstandingly effectively in promoting foreign trade and Hungarian exports. Following these changes, the Hungarian export exceeded EUR 141 billion in 2021.

 

Facts about the Hungarian business climate

Did you know that:

  • the corporate tax rate is 9% in Hungary, the lowest in the EU;
  • the tax burden on labour has continuously been decreased during the past  years;
  • Hungary lies not only at the crossroads of three TEN-T corridors, but Budapest is also connected with direct flights to Denmark, namely to Copenhagen and Billund;
  • GMO is forbidden in the Hungarian Constitution, purely 100% GMO-free ingredients are available in Hungary;
  • with its new plant, BMW is going to be the fifth OEM in Hungary, opening a new chapter in the history of Hungarian vehicle manufacturing, adding to long decades of success of Audi, Suzuki, Opel and Mercedes-Benz.
  • 5G has already been introduced in the city of Budapest, some other cities and in the region of Lake Balaton, while the 4G coverage is more than 99% countrywide;
  • the Hungarian Instant Credit transfer scheme (AFR) functions since March 2020. The Hungarian solution's uniqueness is due to its obligatory nature.

 

Useful links for doing business in Hungary

Export Hungary

 

Useful links for doing business in Denmark

 

Business news

 

Hungarian Economy

 

Contact:

Márk László Baranyai

Foreign Economic and Trade Attaché

 

János Kertész

Investment and Trade Assistant
jkertesz@mfa.gov.hu