Hungary is continuing to attract millions of dollars in fresh foreign direct investment each year.  U.S. investors, in particular, are being encouraged to make new investments in high technology, in which the country is developing a highly-visible role as the regional center for Eastern Europe.

The preceding paragraph is the lead-in to an article published in the May 2003 issue of Institutional Investor. To read the condensed version of the article which highlights the benefits of investing in Hungary, click here.

 Reasons to Invest in Hungary

Guaranteed Investment
The Hungarian government guarantees the repatriation of all profits in US dollars. Furthermore, investments in Hungary can benefit from OPIC insurance against political risks.

Taxes are low
There are no dividend withholding taxes on profits paid to foreign joint venture investors. No double taxation - guarantees through international agreements. At 18%, Hungary’s corporate tax rate is one of the lowest in Europe. (By comparison, corporate tax rate in the US is 39 %)·

No restrictions on foreign management
Foreign management participation is allowed without restrictions.

No Limit on capital participation
There are no limitation on capital participation - including full ownership. Furthermore, you can freely choose the legal form of your enterprise,
e.g., corporation, limited liability company, partnerships, etc.

Centrally Located - Gateway to Europe
With a reasonably priced and well-educated work force, Hungary is an ideal place for a company to set-up its European headquarters. It serves as a gateway to the European Market’s 600 million consumers.

Imports qualify for 'favored nation' treatment
Imports from Hungary qualify for most favored nation treatment in the United States.

Foreign investments flowing into Hungary
Hungary has received over half of all foreign investments flowing to Eastern Europe since 1990, a total of 28 billion USD by 2002. This is by
far the highest per capita amount in all of Central and Eastern Europe.

High tech activitivies rise from 12% to 27.3%
The ratio of high tech activities in Hungary has risen from 12% of the total of all industrial activity in 1998 to 27.3% in 2000, while the ratio of low-level technological activities to the total has declined in the same period from 60.7 % to 41.8 %.

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