About Hungary

Last updated: October 2026

Hungary at a glance

Economy and industry

Hungary has a long industrial tradition. Its key sectors are automotive manufacturing and its supply chain, electronics, mechanical engineering, food processing and pharmaceuticals. Over the past few years, battery and electric-vehicle manufacturing have become a major new focus. In services, shared service centres, IT and software development, financial services and tourism are the most important.

Many well-known companies from the German-speaking countries have chosen Hungary as an investment location, for example Mercedes-Benz (Kecskemét), Audi (Győr), BMW (Debrecen, production started in 2025), Bosch, Wienerberger, Nestlé and Stadler Rail. They have been followed by numerous suppliers. Asian investors such as CATL (Debrecen) and BYD (Szeged) have also made large investments in recent years.

Why Hungary?

• Location: at the heart of Central Europe, with a motorway network of approx. 2,000 km connecting Budapest to all neighbouring countries.
• Infrastructure: more than 200 industrial parks, many of them with ready-to-use plots and utilities.
• Workforce: a well-trained workforce with a strong technical background and good language skills, from skilled workers to engineers who speak several languages.
• Taxes: a 9% corporate income tax and a 15% flat personal income tax are among the most competitive rates in Europe, for both companies and individuals.
• Incentives: larger investments may be eligible for government cash grants and the development tax allowance. The Hungarian Investment Promotion Agency (HIPA) is the first point of contact.

What investors should keep in mind

• Labour market: the labour market is tight and wages have risen quickly in recent years. Since June 2026, no new guest-worker residence permits are issued (see Residence of Foreigners).
• Regulatory environment: Hungarian tax and regulatory rules change often, so investors should plan with this in mind.
• Outlook for 2027: after the 2026 parliamentary elections, the new government announced a tax package that is currently in public consultation. It includes a new wealth tax for private individuals, an extended KATA small-taxpayer regime and a personal income tax credit for lower incomes. We will update this guide once the legislation is adopted. See also our page on the wealth tax.