Founded in 1873, Budapest was the second capital of the Austro-Hungarian Empire. Located along the Danube, the city and the country enjoy a period of very strong growth. A dynamic economy (4.1% growth in 2017 and 4.8% in 2018), an unemployment rate of less than 3.4% in 2019 and one of the most attractive tax regimes in Europe are attracting investors.
Hungary’s geographical location also makes it a gateway of choice to Eastern Europe, Central and Southern Europe. This makes its market attractive for foreign investors.
Start your business in Hungary
Process of company formation in Hungary is fast and easy. However, it is mandatory to be assisted by a lawyer or a specialized company.
You must prepare your company registration file, open a bank account and file the application. Once the documents part is complete, the registration is fast.
The average time to open a company in Hungary is 7 days. This is much shorter than for some other European countries.
Foreign investments are not subject to any prior authorization requirement, except in the case of privatizations and for certain currency transactions.
The part of foreign investment in the capital of Hungarian companies is not limited and the repatriation of profits and the transfer of capital investments are free.
The only exceptions are defense industries, which are, however, very underdeveloped.
Since 1988, a law protects foreign investments against expropriation, except for extraordinary national interest (and even in this case the expropriated investor must be compensated), against nationalization and against any abusive acts.
Hungary has also signed bilateral treaties with many countries.
Invest in real estate in Hungary
The real estate market was hit hard by the 2008 financial crisis. However, since 2015 and a homeownership assistance program, the market is booming.
The prices of real estate especially in Budapest increase every year.
However, the price per square meter remains below other European capitals.
You will have to pay an average 2200 € by meter square. Some popular neighborhoods can exceed 3000 €.
Even if real estate agencies are not yet seeing a decline in the number of transactions in the first half of 2019, the market could contract in the next years.
Prices should continue to rise, but not to the same extent.
To invest, it is recommended to pay attention to development and urbanization projects in Budapest.
Improved transportation (pedestrian street, bypass, new public transport line) influences neighborhoods and therefore the price of real estate.
If you are thinking to long term investments, you should check with local authorities, urban development experts and find a good real estate agent.