Direct and fiscal incentives may be claimed under the current regime. The sum of the investment incentives granted cannot exceed the aid intensity for the specified industry and the targeted region for the production site in Hungary. Aid intensity limits range from 10% (Budapest) to 50% (Eastern Hungary). The development tax allowance may be claimed with respect to:
- Investment projects over HUF 6 billion in any area of Hungary;
- Starting investment projects over HUF 3 billion in any area by SMEs and in certain areas by large enterprises;
- Investment projects over HUF 1 billion in certain depressed areas;
- Investment projects over HUF 300 million by small enterprises and HUF 400 million by medium enterprises;
- Investment projects over HUF 100 million relating to certain activities (e.g., serving energy efficiency, R&D, film production, etc.);
- Investment projects over HUF 100 million in free economic zones; and
- Investment projects over HUF 3 billion creating new workplaces.
If the combined present value of the investment value exceeds the HUF equivalent of EUR 100 million, the tax allowance is available pursuant to a decision of the government upon the request of the investor.
In addition to tax incentives, direct financial support may be obtained from the central and local governments in the framework of pre-approved aid and incentive programs. Further, the central government provides individual aid and incentive programs for large scale investments.