Hungary has undergone a major transformation over the past decade. It went from being a country with a weak, underdeveloped economy and infrastructure to one of the fastest growing economies in Eastern Europe. With all of the recent positive changes occurring in Hungary, many businesses are considering making Hungary their new home or expanding into this blossoming market.
In this article, we will discuss reasons for doing business in Hungary.
Table of Contents
Competitive Market
Hungary has been a competitive market for years, with strong competition in all industry sectors. The Hungarian government has committed to improving its competitiveness, and state-owned enterprises are being restructured to become more efficient and competitive, with many subsidiaries being sold off or closed. This makes it easier for foreign companies to do business with Hungary; however, there is still some work to be done on this front.
Excellent Infrastructure
Hungary has excellent infrastructure, including a modern highway system, an extensive railway network, several airports and ports, high-speed trains, and an efficient public transportation system. It also has one of the best preserved industrial regions in Central Europe, “Pannonhalma-Szigliget” (the Roman town of Pannonhalma).
The dominant industries are chemical processing, food processing, metallurgy and machinery. There are also numerous smaller enterprises such as small restaurants or breweries that can benefit from being able to export their products abroad without having to wait for large orders from customers who have a lot of influence on prices and purchasing decisions at local supermarkets or other outlets where they sell their products directly to consumers.
Accessible Facilities
Due to its location at the center of Europe, Hungary is ideal for companies that want to expand their operations into new markets or increase their presence in existing ones. The country is also home to several large multinational corporations that provide various services such as accounting, legal, and consulting services which can be helpful for businesses looking for additional resources or assistance from experts from other countries who speak different languages than those used by their employees.
Attractive Corporate Tax Rate
Hungary has a corporate tax rate of just 25% for all companies, regardless of the size or nature of their operations. This is significantly lower than the 40% rate in most EU countries. This makes Hungary a particularly attractive for foreign investors looking to set up shop in Europe.
Highly Educated Workforce
Hungary’s population is highly educated, nearly 95% having completed secondary education and over 80% having completed tertiary education (compared to around 80% and 60%, respectively, in the UK). This gives Hungary a competitive advantage in attracting foreign workers with specialized skills that are not readily available in other countries.
Pro-Business Government
Hungary’s pro-business government is an attractive place for businesses to locate. The country boasts a highly skilled workforce, a stable legal system, and a transparent bureaucracy. Hungary’s pro-business government is an attractive place for businesses to locate. The country boasts a highly skilled workforce, a stable legal system, and a transparent bureaucracy.
Hungary has a strong tradition of entrepreneurship and innovation. In recent years, it has become a popular destination for foreign investment due to its growing economy, low tax rates, and competitive labor markets.
Bottom Line
Hungary is a growing economic powerhouse in Central Europe. It has been since the fall of communism, and its economy continues to impress with double-digit growth. While plenty of companies have noticed Hungary’s abundant natural resources, the low corporate tax rate for foreign companies, qualified workforce, and strong research and development endeavors continue to make it an attractive place to do business.