Investment Opportunities in Hungary
Protection of Foreign Investment
- Bilateral Investment Conventions Signed By Hungary
- Consult the website of the European Union.
- International Controversies Registered By UNCTAD
- conflits de l'UE mettre lien vers disputes de l'UE
- Organizations Offering Their Assistance in Case of Disagreement
MIGA , Multilateral Investment Guarantee Agency
WTO , World Trade Organization
- Member of the Multilateral Investment Guarantee Agency
Country Comparison For the Protection of Investors
|Hungary||Eastern Europe & Central Asia||United States||Germany|
|Index of Transaction Transparency*||2.0||6.3||7.0||5.0|
|Index of Manager’s Responsibility**||4.0||4.0||9.0||5.0|
|Index of Shareholders’ Power***||7.0||6.2||9.0||5.0|
|Index of Investor Protection****||4.3||5.5||8.3||5.0|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
Procedures Relative to Foreign Investment
- Freedom of Establishment
- Acquisition of Holdings
- Up to 100 percent foreign ownership is permitted with the exception of designated "strategic" holdings in some defense-related industries. The current government’s renewed privatization concept is opening some of the strategic holdings to private participation. Foreigners investing in financial institutions and insurance must officially notify the government but do not need advance authorization. Foreign financial institutions may operate branches and conduct cross-border financial services in Hungary, in keeping with OECD commitments. Currently, foreign firms control 2/3 of manufacturing, 90% of telecommunications and 60% of the energy sector.
- Obligation to Declare
- For contact information at national customs authorities, please visit the European Union website or the Hungarian Customs Office.
- Competent Organization For the Declaration
Hungarian Customs and Finance Guard
- Requests For Specific Authorizations
To determine if a license is required for a particular product, check the TARIC.
Hungary, like many EU Member States, maintains its own list of goods subject to import licensing (arms, precious metals etc.)
Office Real Estate and Land Ownership
- Possible Temporary Solutions
- Locations d'usine, bureaux.
- The Possibility of Buying Land and Industrial and Commercial Buildings
- Under the Investment Act, a company incorporated in Hungary may only acquire real estate "required for its economic activities," but this has been broadly interpreted and has not prevented foreign entrepreneurs from engaging in property development. Only private Hungarian citizens and EU citizens resident in Hungary and engaged in agricultural activity can purchase farmland, while others may lease it. Restrictions on foreigners buying land will remain in force for seven years following EU membership and it is possible they could be extended for an additional three years
- Risk of Expropriation
- Forms of Aid
- Performance requirement/incentives are available to all enterprises registered in Hungary, regardless of the nationality of owners or location of incorporation, and applied on a systematic basis. To comply with European Union rules, the government of Hungary no longer grants tax holidays based on investment volume.
- Privileged Domains
Transport and infrastructure
Electronic Public Administration Etes-vous sûr que la réponse st appropriée? Ici on demande quels secteurs sont priviligiés par les investisseurs étrangers.
- Privileged Geographical Zones
The folowing subvention rates are allowed by region :
- North Hungary, North Great Plain, South Great Plain, Centre Transdanubia, and South Transdanubia: 50%,
- West Transdanubia 45%,
- Pest county 40%,
- Budapest 35%.
- Free Zones
- Currently no company operates in customs free zones and all of them transferred their assets and continued operation following customs handling of their assets. The Finance Ministry plans to nominate customs free zones, but currently there seems to be little demand for this service. Possible sites could include Székesfehérvár, Gy?r, Kecskemét, Miskolc, or Szombathely.
- Organizations Which Finance
- Magyar Fejlesztési Bank
- The Key Sectors of the National Economy
- Automotive, Computer Technology, Tourism.
- High Potential Sectors
- Environment, Housing.
- Privatization Programs
- Railway, Energy.
- Tenders, Projects and Public Procurement
Ted - Tenders Electronic daily, Business opportunities in EU 27
Tenders Info, Tenders in Hungary
Sectors Where Investment Opportunities Are Fewer
- Monopolistic Sectors
- Post, public transport.
- Sectors in Decline
- Mining, Textile.
Finding Assistance For Further Information
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