Hungary: Investment Location
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- Tamsyn Palmer
- 3 years ago
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1 in Eastern Europe.
1 Hungary: Investment Location Tünde Kis Director, HIPA 12 May 2016
2 AGENDA Hungarian economic policy HIPA Our recent awards & Success stories Main investment decisions in 2015 Available incentives in Hungary Contacts
3 Hungarian economic policy Financial consolidation The budget deficit has been successfully kept below 3% of GDP from : excessive deficit procedure (EDP) was abrogated by the EU Inflation rate is record low: -0.2% (2014) Labour market tendencies Employment has been rising steadily since 2010 The unemployment rate amounted to 6.2% in 2015 Q4 Tax system Gradual move from an income taxes based system to a consumption taxes based one 15% flat-rate personal income tax A corporate tax rate of 10% applies to tax base up to HUF 500 million (EUR 1.62 million, USD 2.17 million), beyond that amount 19%
4 Tax law amendment measures effective as of 1 January 2017 Measures related to encouraging labor mobility Travel Measures related to encouraging labor mobility Housing R&D related measures
5 Our recent awards TOP 10 EASTERN EUROPEAN CITIES Budapest ranked the most attractive city in Eastern Europe in Rank City Country 1 Budapest Hungary 2 Wroclaw Poland 3 Katowice Poland 4 Plzen Czech Republic 5 Moscow Russia 6 Brno Czech Republic 7 Poznan Poland 8 Ostrava Czech Republic 9 Bratislava Slovakia 10 Prague Czech Republic Source: European Cities and Regions of the Future 2014/15 BEST TO INVEST 2015 Hungary Ranked No. 1 in Eastern Europe Rank GLOBAL BEST TO INVEST (per projects) GLOBAL BEST TO INVEST (per capita) 1 Hungary Hungary 2 Czech Republic Czech Republic 3 Poland Macedonia 4 Slovak Republic Slovak Republic 5 Greece Liechtenstein 6 Romania Greece 7 Macedonia Poland 8 Serbia Serbia 9 Bulgaria Latvia 10 Croatia Bulgaria Source: Site Selection Magazine
6 How do we support your investment projects? YOU MAKE A DECISION Taylor made information packages on the economy, sectors, incentives, business environment, supplier networks, etc. Taylor made incentive offer Location search and evaluation Site visits and expert meetings YOU HAVE CHOSEN HUNGARY We offer you our After-Care services: share with us your experience about the business climate We mediate between government and businesses We support your further expansion...
7 Our succes stories 2.
8 Main investment decisions in 2015 Audi Hungaria Motor Kft., automotive industry Bosch, automotive industry Coloplast, medical devices ContiTech Fluid & ContiTech Hungary, automotive industry Hellmann, SSC Interspan, wood industry IT Services Hungary, SSC NHK Spring, automotive industry Opel Szentgotthárd, automotive industry Papst Hungary Kft., mechanical engineering Randstad Sourceright, SSC Rosenberger Magyarország Kft., electronics Sauflon CooperVision, medical devices SMR, automotive industry Tata Consultancy Services, SSC UNHCR, SSC UNICEF, SSC thyssenkrupp, automotive industry Mercedes, automotive industry
9 Automotive industry: flagship of the Hungarian economy The automotive industry accounts for 30,1 % of the total output of the manufacturing industry, 92,2 % of the products of the sector is exported. The number of automotive industry supplier companies in Hungary is more than 700 Out of the world s TOP 20 TIER-1 suppliers 15 have production facility in Hungary. General Motors Powertrain Location: Szentgotthárd Foundation: 1991 Products: engines, cylinder heads, gearboxes Engine prod. cap.: (2015) Nr. of employees (expected): ( ) AUDI Hungaria Motor Kft. Location: Győr Foundation: 1993 Products: TT Coupé/Roadster, A3 Cabriolet/Limousine Car prod. cap.: Engine prod. cap.: Nr. of employees: Magyar Suzuki Location: Esztergom Foundation: 1991 Products: Swift, Splash, SX4 S-Cross, Vitara Car prod. cap.: Nr. of employees: Mercedes-Benz Location: Kecskemét Foundation: 2008 Products: B Class, CLA Class, CLA Shooting Brake Car prod. cap.: Nr. of employees: 4.300
10 SSC sector - a success story Constant growth since 1991 More than 90 companies with more than 100 active sites About 40,000 employees Expanding scope and activities Source: HIPA s SSC Database
11 Available incentives in Hungary I. Incentives for Investment (regional aid) Cash grants VIP Cash Subsidy Job Creation Subsidy EU Co-financed Tenders (mainly for SMEs) Local Subsidy Granted by Municipality Tax allowances Development Tax Allowance (CIT) II. Incentives for Training Cash grants Training Subsidy Workshop Establishment Subsidy III. Incentives for R&D&I Cash grants EU Co-financed Tenders Tax allowances R&D&I allowances IV. Incentives for Employment Tax allowances Social Tax Allowance Vocational Training Contribution Allowance For large enterprises Over EUR 50 million investment the maximum ratio of aid is scaled down in accordance with EU regulations. *Over EUR 50 mn investment (in PV) the maximum ratio of aid is scaled down in accordance with EU regulations.
12 Contacts: Mrs. Tunde Kis Director M:
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