Widely considered to be the gateway to central and south–eastern Europe, Hungary makes an attractive market for foreign investment. Hungary’s main investors are the Cayman Islands, the Netherlands, Ireland, Germany, USA, Canada, and Austria – and investments are in financial services, manufacturing, trade, real estate, and scientific / technical activities.
Tts Its labour force is highly educated and skilled with a particular emphasis on engineering, medicine and economics. As of 2020, Hungary has the highest literacy rate in the region. And labour is also inexpensive, allowing the country to integrate into the European production chain and be considered an efficient production base.
Investors should be aware that Hungary has instituted two separate screenings for FDI, with the intention of protecting Hungarian industries impacted by COVID-19. The first involves sectors of strategic importance, like defence, cryptography, utilities, and the financial industry. The second screening has a much wider scope, covering most manufacturing activities, as well as hospitality, energy and construction.
Also, the effects of the Global Financial Crisis are still affecting Hungary. Low investment in innovation and R&D, a high level of energy dependence, and the fragile banking sector (both public and private) put Hungary at risk. There are substantial debts within the country, with inflation making foreign currency repayments problematic for both the banks and the populace. All of which affect it’s Doing Business ranking (52/190).
AUXADI can become your ideal investment partner in Hungary. From our office, located in Hungary, we offer a One Stop Shop value added Outsourcing services in the areas of Accounting and Reporting, Tax Compliance, Payroll Management and Representation services, among others.