Hungary

Basic Information

9.8 million

Area

Population

Workforce

Language

Political System

Currency

Membership

4.6 million

Hungarian

Parliamentary democracy

Hungarian Forint (HUF)

EU, NATO, OECD, OSCE, Schengen Agreement, V4, UN, Council of Europe…

Budapest

Capital

93,028  sqkm

Czech Republic
Poland
Slovakia
Germany
France
Hungary
Germany
Spain
United Kingdom
Ireland
Romania
Luxembourg
Netherlands
Slovenia
Italy
Bulgaria
Austria
Croatia
Belgium
Portugal
Malta
Estonia
Latvia
Lithuania
Greece
Sweden
Denmark
Finland
Cyprus
Malta
Estonia
Latvia
Lithuania
Greece
Sweden
Denmark
Finland
Cyprus

Hungary is a landlocked country in Central Europe bordered by Austria, Slovenia, Croatia, Serbia, Romania, Ukraine and Slovakia. The official language is Hungarian, which is the most widely spoken Uralic language in the world, and among the few non-Indo-European languages to be widely spoken in Europe.

The Austro-Hungarian Empire collapsed after World War I, and the subsequent Treaty of Trianon established Hungary's current borders. The country gained widespread international attention as a result of its 1956 revolution and the seminal opening of its previously-restricted border with Austria in 1989, which accelerated the collapse of the Eastern Bloc. On 23 October 1989, Hungary became a democratic parliamentary republic.

Hungary is an export-oriented market economy with a heavy emphasis on foreign trade (35th largest export economy in the world). FDI inflows rose to EUR 4.3 billion in 2018, with Germany accounting for nearly half of investments. The targeted industry of FDI is shifting from low-value textile and food-processing sectors to wholesale, retail trade and repair of vehicles.
Major Industries

Pharmaceuticals

Automotive

Logistics

Biotechnology

Shared service

Electronics

Major Trade Partners

Export

Germany, Austria, Poland, Slovakia, China, Netherlands, Czech Republic, Italy, France, Russia

Import

Germany, Romania, Italy, Austria, Slovakia, France, Czech Republic, Poland, UK, Netherlands

Reasons to Invest

  • Ideal geographical position in the center of Europe for manufacturing, services and logistics
  • Great infrastructure, ready-made industrial sites, offices and science parks
  • Good balance of labor costs and quality
  • Governmental incentives
  • Investment friendly economic policy
  • Competitive tax system

73.60 %

1,228 USD

General government debt (GDP, 2017)

Long-term interest rates
(10Y government bonds)

Average inflation rate (2018)

Labour productivity (index, 2018)

Unemployment rate (avg. 2018)

Average nominal gross wage (12/2018)

3.20 %

279.98

BBB

2.85 %

121.70

3.7 %

Average nominal monthly gross wage
(2018)

1,086 EUR

10.6 %

GDP growth (constant prices, 2017)

4.0 %

343,500 HUF

Average nominal monthly gross wage
(2018)

Average nominal monthly gross wage
(2018)

Exchange rate - HUF/EUR (31/12/2018)

321.47

Exchange rate - HUF/USD (31/12/2018)

Credit rating (S&P, 2017)

Economic Indicators

40 hours / week

15 %

Maximum Working Hours

Maximum Overtime Hours

Compensation for Overtime / Holiday Work

Minimum Number of Paid Holidays

Sick Days

Maternity Leave

Environmental pollution tax

Parental Leave

Social Security (Companies)

Notice Period

Social Security (Employees)

Probation Period

Labour Union
(Proportion of Employee/Collective Bargaining Coverage)

250 hours / year

27 %

50% plus

20 days

Until 3 years old

23.5 %

At least 1 month

Local business tax

18.5 %

Not more than 3 months

12 % / 33 %

Property transfer tax

15 days

24 weeks

Minimum Wage (2019)

149,000 HUF / month

9 %

Corporate Tax

Income Tax

Value Added Tax (VAT)

OtherTax:

Excise duty

Energy tax

Taxation System
Labour Regulations
Source: World Atlas, Trading Economics, Eurostat, World Bank, Inflation EU, Exchange Rate ORG