Investment opportunities in Hungary: best ways to invest in a strong economy in the CEE region

1. Investor-friendly legal environment. As Hungary is an EU member, its legislation is fully transparent and harmonised with EU law. The process of company registration under a simplified procedure takes 1—2 days, and the costs are low compared to other EU countries.

The World Bank’s inaugural Business Ready report, released in October 2024, assessed the quality of regulations and public services across 50 economies. Hungary achieved the highest score in the regulatory framework category at 78.23%, indicating a favorable environment for business operations.

2. Solid banking system. The Hungarian banking system is considered one of the healthiest and most developed in Central and Eastern Europe. There are about 40 banks, including branches of major European banks such as OTP Bank, Raiffeisen Bank, and Erste Bank.

Opening bank accounts is available to both residents and non-residents. Hungarian bank account holders can make facilitated bank transfers to other EU countries via the SEPA system.

3. Business-friendly tax regime. In Hungary, companies pay an income tax at a flat rate of 9%. To compare, in neighbouring Austria, the corporate income tax is 25%; in Germany, the total tax paid by companies may reach 30%.

Hungarian companies also pay no withholding tax on outbound payments to foreign businesses.

The general VAT rate is 27%, which is high when compared to other EU countries. However, there are reduced VAT rates of 5% and 18% applied to certain categories, such as bread, dairy products, medicines, or internet and accommodation services.

4. Subsidies and incentives for businesses. The Hungarian Government offers a range of measures to support business competitiveness. They include regional and non-regional aid from funds, VIP investment cash subsidies, and tax incentives for certain types of businesses and investment projects.

5. Favourable location. Hungary is located at the crossroads of major transport paths, allowing quick access to any part of Europe. It ranks 5th in railway density in the EU and has three international airports. The one in Budapest offers direct flights to more than 120 destinations worldwide.

6. Affordable cost of living. The Hungarian price level indices for consumer goods and services are 30% lower than the EU average. Prices for electricity, gas, and fuels are the lowest in the EU, according to Eurostat.

7. Opportunity to obtain residency by investment. Foreigners purchasing units of Hungarian real estate funds can get a residence permit for 10 years. To qualify, they invest at least €250,000.

The economy of Hungary ranks 50th in the world per GDP per capita and 54th in terms of the total GDP, as per the International Monetary Fund data.

The Hungarian GDP per capita is comparable to those of Portugal and Russia. From 2017 to 2022, it increased from around 69% to 74.7% of the EU average and reached the level of $46,372 in 2024.

The country showed a stable economic recovery after the COVID‑19 pandemic. However, in Q3 2023, the economic growth slowed down and showed a decrease of 0.4% compared to Q3 2022. In 2025, the country’s economy is expected to grow by 3.3%.

Up to 80% of the country’s GDP accounts for exports. Hungary’s most important trading partners in the EU are Germany, Italy, and Romania. The largest non-EU export partner is the United States.

Key sectors of the Hungarian economy include building materials, food, textiles, chemicals, motor vehicles, IT, electronics, and software.

The labour market has improved significantly in the recent decade. The current unemployment rate is around 4.7%, projected by OECD to lower to 4.0% by 2026.

The Hungary Golden Visa program allows investors in Hungarian property to obtain a 10-year residence permit in the country. Thus, Golden Visa holders can move to Hungary and stay there for more than 90 days out of 180.

Investment options. Hungary offers two investment paths for residency:

• purchase real estate investment fund units for at least €250,000;

• or donate to a higher educational institution at least €1,000,000.

Among EU Golden Visa countries, only Portugal has a similar fund units option, but the investment threshold there is €500,000.

Eligible investment funds. For a fund to be eligible for the Golden Visa, it must be included in the list of approved market operators maintained by the Constitution Protection Office. Additionally, a minimum of 40% of its assets must be invested in residential real estate located in Hungary.

In 2025, there are two approved investment funds: the SPRINT Real Estate Development and Investment Fund and the Gravitas Hungary Fund.

The SPRINT Real Estate Development and Investment Fund is a private and closed-end. It focuses on capital growth and consistent income generation through strategic real estate investments.

The fund’s portfolio includes residential properties, logistics complexes, hotels, and office buildings, primarily located in Hungary.

The Gravitas Hungary Fund, part of the long-established Gránit group, was created for Golden Visa applicants. It invests at least 40% of its assets in Hungarian residential real estate — mainly modern apartments for long-term leasing — with the rest allocated to bonds and other real estate projects.

The fund offers an estimated annual yield of 5—6%.

Applicant eligibility. The Golden Visa is designed for non-EU and non-EEA citizens willing to invest in the Hungarian economy. Applications from US citizens are currently accepted only if they have second citizenship.

A spouse, children under 25, and parents can obtain residence permits together with the investor.

Golden Visa validity. Residency can be renewed once for an additional 10 years. To be eligible for an extension, the investor must still possess the investment asset.

Foreign nationals wishing to invest in Hungarian shares and bonds turn to the Hungarian stock market represented by the Budapest Stock Exchange. Securities are traded online via the special system and can be purchased at exchange dealers.

Buying government securities at the Hungary stock market is the most conservative and safe investment tool. Most securities offer regular coupons and are fully repaid at their maturity.

Interest rates depend on the issue date, maturity period, and the current inflation rate in the case of securities with a floating coupon. The current average interest rate ranges from 6.2 to 6.8%.

Hungarian government securities are available to both residents and non-residents. Non-residents make purchase and sell transactions in accordance with the legislation of Hungary and the country of their residency.

Source: Government Debt Management Agency of Hungary

The Hungarian Government encourages investments in business. To promote foreign direct investments, it continuously improves the taxation system. Currently, Hungarian companies pay the EU lowest corporate tax — at a 9% rate regardless of the income.

The best investment business areas in Hungary are automotive, electronics, IT, battery, medical technologies, life sciences, foods, and logistics.

Hungarian businesses can benefit from various subsidies and incentives provided by both the government and different funds.

The VIP cash subsidy system enhances business competitiveness. It is a non-refundable cash grant provided for investment, job creation, R&D, and training projects. The subsidy amount may reach 50% of eligible investment costs depending on the investment type and the region in which the company is registered.

Other eligibility criteria for subsidies may include maintaining investments for a certain number of years, creating the stated number of jobs, and showing an increase in wage costs or base sales revenue.

Tax incentives allow businesses to optimise their taxes. The development tax incentive may be claimed for 13 years from the year of the investment and allows a deduction of up to 80% of the annual payable corporate income tax.

Tax incentives for energy efficiency investment projects depend on the location of the investment and allow deduction of up to 45% of eligible costs, with a maximum amount of €15 million. A company may claim the incentive from the tax year the investment is made and in the following five tax years.

Residency for business owners. Hungary offers a business residence permit designed for non-EU and non-EEA entrepreneurs who establish a company within the country. To qualify, applicants must register a legal entity — typically a limited liability company, Kft — with a minimum authorised capital of €7,700.

Applicants must demonstrate that their business can generate for them a monthly income of at least €1,500, either through a solid business plan or by employing at least five EU or Hungarian citizens.

The initial residence permit is valid for 1 year and can be extended for an additional 2 years.

Hungarian legislation allows foreigners to purchase property. To do this, they must obtain permission from the competent government agency. The deal is always accompanied by the lawyer who obtains permission and communicates with the authorities on the investor’s behalf.

Property prices in Hungary are continuously increasing: since 2010, they have risen by 230%, according to Eurostat.

The average property price for new real estate per square metre is about €2,900. The most expensive real estate is located in Budapest: here, the average price is €3,695 per square metre, reaching €5,500 per square metre in prestigious and tourist parts of the city.

Most real estate expenses include the 4% stamp duty for the title transfer, administrative fees, and charges for legal, realtor, and notary services. Total accompanying expenses usually equal 10% of the property price.

When selling the property, the investor pays a capital gains tax at 15% of the difference between the purchasing and selling price.

The annual rental yield is 3.5 to 8%, depending on the property and region. For example, in Budapest, monthly rental prices start at HUF 235,000, which is about 580 €.

Residency eligibility. Foreign investors cannot buy real estate and automatically qualify for a residence permit.

However, residency applicants usually need a registered address in Hungary; therefore, they purchase or rent residential properties in the country, among fulfilling other requirements.

1. Hungary encourages foreign investments. It offers an investor-friendly legal environment, low corporate income tax rate, and various subsidies for business.

2. The Hungarian economy ranks 54th in the world per total GDP and is expected to grow by 3.3% in 2025.

3. Investors benefit from various grants and tax incentives provided by the Government. The corporate income tax for businesses is 9% — the lowest in the EU.

4. Hungarian government securities are a conservative and safe investment tool that can bring a yield of 6.2—6.8% per annum.

5. Business owners can get residence permits if they register a legal entity in Hungary. The permit is granted for 1 year, subject to extension for 2 years.

6. Foreign citizens are allowed to purchase real estate in Hungary. Investors buying residential property can qualify for residency if they meet other requirements corresponding to the desired residency type.

7. Investors can purchase real estate investment fund units for at least €250,000 and obtain a Golden Visa for 10 years.