Doing Business in Hungary

RSM - THE GLOBAL
DESTINATION FOR YOUR
AUDIT, TAX AND
CONSULTING NEEDS

Foreword

This is already the sixth edition of Doing Business in Hungary 2016, a publication designed to assist decision-makers planning business investments in Hungary with a complex information package focusing on the foundation and operation of business enterprises and to help them navigate through the key taxation, economic and legal provisions. This publication offers investors an excellent starting point, helping them to clearly formulate specific questions concerning their business preferences and relevant industries, which may require further analysis with the involvement of experts.

The last EU development cycle ending in 2020 will play a key role also in 2016 among the opportunities to stimulate economic growth, which will focus, after the overall enhancement of the economy, on the economic operators themselves, within the framework of which small and medium sized enterprises (SMEs) can become the primary beneficiaries of European Union grants. In addition, they will continue to have access to the Credit for Growth program created by the National Bank of Hungary and offering preferential interest terms.

The amendment of the accounting rules brings an important novelty for multinational companies according to which, starting from 2016, some of them will be obliged while others will be given an option to prepare their stand-alone financial statements in accordance with IFRS instead of the Hungarian accounting standards.

The housing policy measures announced by the government at the end of 2015 (such as the reduction of the VAT on home sales from 27 to 5 percent, tax refund on home construction, and the Family Home Allowance (CSOK)) are expected to boost the Hungarian property market from the middle of 2016, exerting a beneficial influence on the construction industry and new investments.

Investors also drive the boom of the Hungarian property market. Buyers have become more active which boosted demand and property investment has made a comeback, taking over the currently available money market investment products that offer low deposit rates due to the low central bank policy rate. 

Hungary continues to be an attractive investment target for foreign working capital with its excellent human resources, its workforce of high qualification and language skills as well as its charming natural environment and especially rich culture. 

The members of RSM Hungary group pursue highly-organized accounting, tax consulting, audit and legal activities in this developing and challenging economic environment with broad international background support as the exclusive Hungarian members of RSM International. RSM International is present in 120 countries of the world offering highest standard services and expertise in the field of financial advisory services with more than 38,353 employees in almost 763 offices. As a member of this excellent network, RSM Hungary offers its quality-oriented expert support for the business success of both foreign investors in Hungary and Hungarian enterprises abroad. 

The editorial staff of RSM Hungary group and Szűcs & Partners Attorneys-at-Law trust that our readers will find this publication useful. We hope that our work can provide some meaningful support for the preliminary assessment of your planned investment decisions.

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