Published: December 04 2023
Budapest, Hungary is becoming an increasingly attractive location for investment, thanks to the government's support for companies involved in research and development. In a recent announcement, the minister of foreign affairs and trade revealed that the amount of government support available to these companies is increasing, along with the maximum percentage of investment that can be supported. This is part of Hungary's goal to have one of the most competitive investment systems in Europe.
Increased Government Support for Research and Development
Companies investing in research and development can now access higher amounts of government support in Budapest, Hungary. The amount of support has increased from 15 million euros to 25 million, and the maximum percentage of investment that can be supported has risen to 50%, instead of the previous 25%. This increased support aims to attract more companies to invest in research and development in Budapest.
Subsidies for Training
In addition to increased support for research and development, the government is also increasing subsidies for training. The amount of subsidies available has risen from 2 million euros to 3 million. This is another incentive for companies to invest in Budapest, as they can receive financial support for training programs that help develop skilled workers.
Hungary's Competitive Investment System
Hungary is performing well in the global "investment competition," with capital flows into the country reaching a record-breaking 13 billion euros this year. The National Investment Agency is responsible for attracting these investments to Hungary. The government's goal is to have one of the most competitive investment systems in Europe, and the growing capital flows into the country indicate that they are on the right track.
Attracting Talented Young People
Business service centers in Hungary have played a significant role in attracting young talent and retaining them in the country. In recognition of their importance, the government has reduced the requirement for creating new jobs in these centers. Previously, companies were required to create 50 new jobs with high value-added, but now they only need to create 25 new jobs. This change makes it easier for companies to establish these centers and attract talented young professionals.
With increased government support for research and development, higher subsidies for training, and an attractive investment system, Budapest, Hungary is becoming a prime location for companies looking to invest. The city offers a talented workforce, a favorable business environment, and numerous opportunities for growth and innovation.
Questions & Answers
What is the government support available for companies investing in research and development in Hungary? Companies investing in research and development in Hungary can access higher amounts of government support. The support has increased from 15 million euros to 25 million, and the maximum support will be up to 50 percent of the investment instead of half that.
What is the increase in subsidies for training in Hungary? The subsidies for training in Hungary have increased from 2 million euros to 3 million.
How well is Hungary performing in terms of investment competition worldwide? Hungary is performing well in terms of investment competition worldwide. Capital flows into Hungary via the National Investment Agency are projected to reach 13 billion euros this year, which is double the previous annual record.
What is Hungary's goal regarding investment systems in Europe? Hungary aims to have one of the most competitive investment systems in Europe.
What proportion of domestic investments in Hungary are accounted for by R&D projects? The proportion of domestic investments accounted for by research and development (R&D) projects is increasing. Fresh production capacities and R&D projects are in a positive spiral, boosting production and furthering research and development.
How are business service centers contributing to Hungary's attractiveness for talented young people? Business service centers in Hungary play an outsized role in attracting talented young people and keeping them in the country. To recognize this importance, the requirement to create 50 new jobs with high value-added is being reduced to 25 people.