Foreign direct investments (FDIs) into Hungary surged by 24 percent to reach an all-time record €5.35 billion in 2019, as the country continues to cement its place as a preferred destination for the world’s investors.
The managing partner of Budapest-based law firm KCG Partners, Eszter Kamocsay-Berta, provides insight into some of Hungary’s investment incentives. “It has a favorable tax and financial environment for business that the government has enhanced over the last couple of years by introducing measures that are available to all companies registered here regardless of their nationality. For instance, the government has created by far the most competitive corporate income tax regime in the EU with a 9-percent flat rate, and has gradually reduced taxes on employment: the social contribution rate has fallen from 27 percent in 2017 to 15.5 percent in 2020. In addition, there is no withholding tax on dividends, interest and royalty paid by a Hungarian company to a foreign company.”