In our publication Doing Business in Hungary 2018, we wish to give a complex overview to decision makers planning a business investment in Hungary of the regulatory and economic environment of establishing and operating a business association. The summary presents the most important Hungarian tax, economic and legal regulations to help, above all, foreign investors.
Understanding of the fundamental regulatory framework of Hungary and having comprehensive economic background information is essential for formulating the specific questions and business preferences relating to a given industry. Our qualified experts can help in the answering of the arising questions and the selection of a customized business solution whether we are talking about the foundation, acquisition or sale of a company or the efficient operation of a Hungarian business.
In 2017, the Hungarian economy generated GDP growth of 3.8 percent and it may continue to expand in 2018 in the favourable environment of the world economy. According to expectations, the rate of growth in Hungary is to exceed the double of that of the EU this year also. Growth is supported by the use of EU funds, budgetary and income policy and the economy boosting monetary policy also. The structure of the processing industry became more balanced and the recovery of the construction industry may also remain a long-term growth driver.
The rate of employment burdens for the employer is an important aspect for companies. In this regard, a contribution reduction plan to be implemented gradually until 2022 improves the competitiveness of the operation of Hungarian companies creating a more competitive economic environment for both existing and planned businesses.
The growth in Hungarian consumption in 2017 was driven by the almost 10 percent increase in real income combined with an exceptionally high rate of employment, which trend is expected to continue this year also. Even though strengthened by the increase in demand, the rate of inflation still does not reach 3 percent. Gross fixed assets accumulation also remains an important growth factor in 2018 and is still boosted mostly by the advance use of EU funds.
Digitalization is getting an increasingly important role in Hungarian regulation and in the keeping of contact with authorities. From 2018, an obligation to keep contact electronically was introduced between companies and authorities. The tax and customs authority introduces digitalization in an increasing number of areas in order to make the collection of contributions and taxes efficient and rewards the compliant operation of taxpayers with the benefits represented by a qualified taxpayer status.
The members of RSM Hungary group perform their highly-organized accounting, tax consulting, audit and legal activities in this developing but still challenging economic environment relying on extensive international background support as the only Hungarian members of RSM International. The RSM International network provides the highest level of service and expertise in financial consulting with a presence in 120 countries of the world in 800 offices and employing 42 thousand people.
We hope that the team of authors of RSM Hungary and RSM Legal will be able to provide you substantial support with this publication in the collection of information for investment decision making and in the implementation of the Hungarian business plans of foreign investors.