This economy profile presents the Doing Business indicators for Hungary. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator. The data in this report are current as of June
1, 2014 (except for the paying taxes indicators, which cover the period January–December 2013).

Hungary has exited from recession in early 2013, but the recovery will be modest. Growth potential is held back by weak investment, low employment among low-skilled workers and shortcomings in labour and product markets, making further structural reforms essential. Meagre growth and its causes harm well‑being in ways that go beyond GDP per capita and concern income inequalities and the scope for social mobility. 

GKI research firm forecast a 2% GDP growth for 2015, down from 3.2% this year, the firm said yesterday. Slower than expected world economy growth, a fall in oil prices and tensions between the United States and Russia are the key external factors in Hungary’s slowing economy.

Business Confidence in Hungary decreased to 5.80 in October from 7.50 in September of 2015. Business Confidence in Hungary averaged -6.82 from 1996 until 2015, reaching an all time high of 8.10 in December of 2014 and a record low of -37.70 in March of 2009. Business Confidence in Hungary is reported by the GKI Economic Research Co..

The Companies Act provides for a variety of legal forms under which business entities may be established in Hungary.

General partnerships, limited partnerships, limited liability companies, single member companies or private limited companies may be founded in a simplified procedure by enclosing with the application for the registration of the company the deed of foundation drawn up on the basis of a template in the annex of the Company Procedures Act.

Company Formation Hungary

The primary act of law in Hungarian company law is Act 4 of 2006 on Business Associations (Companies Act). The main types of business associations under the Companies Act are identical to those regulated in EU countries.

Setting up a company in Hungary follows the same legal system that is currently used in EU countries. Read our guide to find out about the most attractive form of incorporation for foreign investors.

The Companies Act makes it possible for residents and foreign investors to form several types of companies in Hungary. This site describes the alternatives

The Corporate Tax Rate in Hungary stands at 19 percent. Corporate Tax Rate in Hungary averaged 23.38 percent from 1989 until 2015, reaching an all time high of 50 percent in 1989 and a record low of 16 percent in 2004. Corporate Tax Rate in Hungary is reported by the National Tax and Customs Administration of Hungary.

Guidelines, summaries on taxation

Guidelines, summaries on taxation

Personal Income Tax in Hungary

VAT Information including refund process.

Hungary introduced Value Added Tax (VAT) in 1988, and is termed Általános forgalmi adó locally (AFA).

Welcome to our Consular Service site! Here you can find useful information on conditions of entry, visa agreements, consular fees, and legal regulations.

Passport & Visa Requirements

Since Hungary has joined the European Union, its rules and regulations regarding labour mobility are changing as they come into line with EU directives. Most non-EU citizens require a work visa and permit in order to go and work in Hungary.

Residence Permit for the Purpose of Employment or other Gainful Activities

A guide to local transportation

Hungary’s central location in Europe and the dense motorway network is one of its most important competitive advantages.

Telecommunications in Hungary include radio, television, fixed and mobile telephones, and the Internet.

Hungary – Infrastructure, power, and communications

Basic Provisions of Hungarian Employment Law

Employment relations in Hungary are governed by the Labour Code and other labour law legislation, collective bargaining agreements and individual employment contracts

This site describes contracts, working hours, compensation, termination and employee holidays

This site describes the two types of unemployment benefits that may be claimed in Hungary; job seeker’s allowance (álláskeresési járadék) and job seeker’s assistance before pension (nyugdíj előtti álláskeresési segély).

As of 1 January 2015 the early retirement insurance contribution is no longer to be paid in view of the fact that from that date the system of early retirement is removed from the social security contribution.

The climate of the Hungary can be described as typical European continental influenced climate with warm, dry summers and fairly cold winters. January is the coldest month with daytime temperatures usually around zero, but in some cases winter months can be very cold with temperatures far below zero and strong, cold northeasterly winds, called Bora, especially in the mountainous regions. 

Hungary has a mild continental climate. There are four distinct seasons, with a very warm summer from June to August where temperatures can rise to as high as 35°C (95°F). Spring and autumn are mild, while winters are very cold, as low as -10°C (14°F), and not a good time to visit rural areas – although city breaks are enjoyable at any time of year.

Hungary performs well in only a few measures of well-being relative to most other countries in the Better Life Index. Hungary ranks above the average in work-life balance, and personal security. It ranks below average in social connections, income and wealth, housing, jobs and earnings, subjective well-being, and health status.

The dos and don’ts of business etiquette in Hungary

Did you know about business culture in Hungary? Watch this video animation to find out some interesting facts:

Cost of living information includes price indices for rent, food, utilities, transportation, restaurants, clothing and more

Schedule of national holidays and Observances

Public Holidays in Hungary.

Demographic information includes population, quality of life, health, sports, technology, energy and the environment

Hungarian Statistical Office Website.

US Department of State – Go to Safety and Security for updates from the Swedish government

Hungary is generally a safe country. People in Hungary are hospitable and are welcoming of visitors.

It is mandatory for children between the ages of five and 16 to attend some form of full-time education. There are a number of educational options available to expats living in Hungary with children; however, language barriers may end up being a deciding factor.

All Children in Hungary from age 6-16 are obliged to attend compulsory education. Children between three and six can go to the kindergarten. The last year of kindergarten is compulsory.

Top exports and imports and top destination countries and countries of origin

Products and services may be imported freely into Hungary, subject to certain restrictions. Since Hungary’s accession to the European Union (1 May 2004) trade with other Member States takes place within the framework of the EU’s internal market, the main principles of which are the free movement of goods, services capital and persons.

Indeed, Hungary, accompanying with Poland, are the countries of transitional economies in Central and Eastern Europe signing free trade agreement with EFTA.

Finding a nice place to live is always difficult. Hungary is no exception 

The rental market in Hungary is deregulated and foreigners can rent property in their own name. There are plenty of furnished and unfurnished rental opportunities in Budapest and other major towns, but prices and services vary greatly. 

The tourism sector may this year reach record high figures, as the number of guests at accommodation establishments is expected to hit 10 million, the number of tourism nights and the amount of tourism revenues are to exceed 25 million and HUF 35bn, respectively, by the end of the year,