Foreign Investment in Hungary

Hungary is an important investment location in Central Europe, offering foreign companies access to the European market, an established industrial base, skilled workers, modern infrastructure, and a competitive business environment.

Foreign investors can find opportunities across industries including automotive manufacturing, electronics, batteries, information and communication technology, business services, logistics, food production, life sciences, medical technology, and industrial products.

The Hungarian Investment Promotion Agency (HIPA) provides free investment-promotion services to international companies, including location selection, information about incentives, supplier development, and assistance during investment projects.

🇭🇺 Why Invest in Hungary?

Hungary combines a strategic Central European location with an established manufacturing and services economy. The country's investment-promotion system also provides support for qualifying projects through government incentives and professional assistance.

🌟 Main Advantages of Investing in Hungary

💼 Top Investment Sectors in Hungary

Hungary's investment-promotion agency identifies several key sectors for investment. These include automotive, battery production, business services, electronics, ICT, food industry, life sciences, industrial products, logistics, and medical technology.

🚗 Automotive Industry

Automotive manufacturing is one of Hungary's major investment sectors. Opportunities exist across vehicle manufacturing, automotive components, engineering, automation, battery technology, and supplier networks.

🔋 Battery & E-Mobility

Battery production and electric mobility are significant areas of industrial investment in Hungary. Investors may find opportunities in battery manufacturing, components, charging infrastructure, engineering, and related supply chains.

💻 ICT & Technology

Hungary's technology sector offers opportunities in software development, IT services, cybersecurity, artificial intelligence, cloud computing, business technology, and digital transformation.

🏢 Business Services

Business service centers and shared-service operations are an important part of Hungary's investment landscape. Budapest and other Hungarian cities provide opportunities for companies establishing finance, accounting, customer service, IT, analytics, and multilingual business operations.

📱 Electronics

Electronics has become one of Hungary's major investment sectors. Recent HIPA-supported investment activity has included significant electronics projects, demonstrating the importance of the sector to Hungary's investment strategy.

🧬 Life Sciences & Medical Technology

Hungary has opportunities in pharmaceuticals, biotechnology, medical technology, healthcare-related research, and life-science manufacturing.

🍽️ Food Industry

Hungary's agricultural and food-processing base creates opportunities in food manufacturing, processing, packaging, agricultural technology, logistics, and food exports.

🚚 Logistics

Hungary's central European position makes logistics, warehousing, distribution, transport, and supply-chain services important areas for investment.

🏭 Industrial Products

Investors can also find opportunities in industrial manufacturing, machinery, engineering, components, automation, and specialized production.

📊 Recent Foreign Investment Activity in Hungary

Hungary continues to attract major investment projects. According to HIPA, investors supported by the agency decided to launch 108 projects in 2025, representing approximately €7.069 billion in fresh capital and more than 18,200 new jobs.

HIPA reported that 2025 investment projects covered 17 sectors. Electronics accounted for more than half of the investment volume, followed by automotive and chemical projects. Business services and R&D also showed strong activity.

📌 Investment Beyond Budapest

Foreign investment in Hungary is not limited to Budapest. HIPA reported that more than 84% of supported projects in 2025 were planned outside Budapest, highlighting investment opportunities across Hungary's regions.

💰 Corporate Tax & Investment in Hungary

Hungary's standard corporate income tax rate is currently 9% of the positive tax base. Hungarian tax rules also provide various tax allowances and incentives subject to eligibility requirements.

The actual tax position of an investment depends on the legal structure, activities, location, financing, employees, tax incentives, and other circumstances. Foreign investors should obtain professional Hungarian tax and legal advice before establishing an investment structure.

🏛️ Hungarian Investment Promotion Agency (HIPA)

The Hungarian Investment Promotion Agency (HIPA) is the country's national investment-promotion organization. It assists both foreign and Hungarian companies considering investments in Hungary.

HIPA provides a one-stop-shop service that can include:

For large or strategically important projects, investors should contact HIPA directly to determine which support programs and investment incentives may apply to their project.

🏢 Setting Up a Business in Hungary

Foreign investors can establish a Hungarian business or operate through other available structures depending on their activities and objectives. The appropriate structure should be selected with professional legal and tax advice.

Common considerations include:

👉 Learn more: Start a Business in Hungary

🌍 Investing in Budapest vs Other Hungarian Cities

Budapest is Hungary's largest business center and an important location for technology, finance, professional services, tourism, headquarters, and business-service operations.

However, investors should also consider cities and regions outside Budapest. Industrial projects may benefit from proximity to suppliers, transport infrastructure, available industrial sites, workforce availability, and regional investment incentives.

HIPA's recent investment data shows that a substantial majority of supported projects are being implemented outside Budapest.

📌 Important Considerations for Foreign Investors

📈 Investment Incentives in Hungary

Hungary operates investment-support mechanisms for qualifying projects. The precise form and amount of support depends on factors such as investment size, location, sector, job creation, project characteristics, and the applicable state-aid framework.

HIPA can provide investors with information and tailor-made assistance concerning available incentives and investment-support opportunities.

Because investment-support rules can change, investors should verify the current requirements before making investment decisions.

🌐 Hungary and the European Market

Hungary's position in Central Europe makes it attractive to companies that want to operate within European supply chains. Its industrial infrastructure and connections with neighboring European economies can be particularly relevant for manufacturing, automotive, electronics, logistics, and business services.

🚀 Opportunities for Startups and Technology Investors

Foreign entrepreneurs and technology investors can explore opportunities in software, artificial intelligence, fintech, cybersecurity, digital services, biotechnology, medical technology, and research and development.

Budapest is the country's largest startup and technology ecosystem, while other Hungarian cities may offer opportunities for specialized technology, university-linked research, manufacturing, and regional business operations.

👨‍💼 Investing in Hungary as a Foreign Entrepreneur

International entrepreneurs should evaluate the Hungarian market, business structure, taxation, immigration requirements where applicable, employment regulations, banking arrangements, and accounting requirements before launching a company.

Foreign investors should also determine whether their proposed activity is subject to sector-specific restrictions, licensing, screening, or regulatory requirements.

❓ FAQ – Foreign Investment in Hungary

Is Hungary a good country for foreign investment?

Hungary can be an attractive investment location for companies seeking access to Central European markets, industrial supply chains, skilled workers, and a competitive corporate tax environment. The suitability of Hungary depends on the sector, investment size, location, and business strategy.

What is the corporate tax rate in Hungary?

Hungary's standard corporate income tax rate is 9% of the positive tax base, subject to applicable rules, allowances, and tax incentives.

What sectors are attractive for investment in Hungary?

Important investment sectors include automotive, batteries, electronics, ICT, business services, food production, life sciences, industrial products, logistics, and medical technology.

Can foreigners start a company in Hungary?

Foreign investors can establish and operate businesses in Hungary, subject to the applicable company, tax, employment, regulatory, and immigration requirements.

Does Hungary offer investment incentives?

Hungary has investment-support and incentive programs for qualifying projects. Eligibility depends on the individual project and the rules applicable at the time. HIPA provides information and assistance to investors regarding available support.

Does HIPA help foreign investors?

Yes. HIPA provides free investment-promotion services through a one-stop-shop model, including site selection, investment information, incentive assistance, supplier development, and support during investment projects.

Is Budapest the only place worth investing in Hungary?

No. Budapest is Hungary's main business center, but significant investment is also taking place in other regions. HIPA reported that more than 84% of supported projects in 2025 were located outside Budapest.


🔗 Explore More Hungary Business & Investment Guides

Start a Business in Hungary Explore Business Opportunities