Tuesday, July 8, 2014
Partner Law Firm in Hungary
Enescu & Cuc is a Romanian Law Firm with partners throughout Europe, Hungary included. This is why we invite you to read a guest post from our partner law firm in Budapest: www.LawyersHungary.com.
Why invest in Hungary?
FDI Magazine, a publication owned by Financial Times Group, recently published its ranking related to the most attractive investment environments in Europe. In this top, Budapest ranks on top of the list as the most attractive Eastern European city for capital investment.
The country is situated in the center of Europe therefore providing optimal logistics conditions for investors who intend to address European markets. Entrepreneurs interested in starting their businesses in Hungary will be able to benefit from low transportation and production costs. Other advantages are an excellent infrastructure, friendly economic environment, governmental incentives and a competitive tax system. The best performing industries are automotive, electronics, information technology and biotechnology.
Hungary’s EU membership status provides investors with many advantages such as a harmonized VAT payment system, increase in economy stability, easier access to financial institutions and funds and lower real interest rates. Also, foreign investors and expats in Hungary enjoy a high standard of living since the country is very welcoming and opened towards foreigners.
The Hungarian Government created many programs to support the economy and attract investments. Besides signing Double Tax Treaties with a considerable number of countries in order to avoid the situation when investors are taxed twice, they also started a program of Special Packages for Large Investors that offers them preferential terms for conducting their businesses and considerably lower taxes. However, the conditions to be accepted in this program are not easy to reach. For example they must start manufacturing projects amounting up to 50mil. Euros and create minimum new 100 jobs.
Entrepreneurs decided to open a companies in Hungary might also be interested in the fact that the country signed several bilateral and multilateral investment protection treaties with countries with high strategic importance. These treaties with over 35 countries stipulate special legal guarantees for investors from these countries.