Expanding into
Hungary
Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all of the registration procedures that needs to be done and documentation required.
Get the Support You Need
Expanding to countries such as Hungary – which is characterized by a multilingual and highly educated workforce, versatile employment and tax laws, a strong infrastructure network linking to the rest of Europe, and leading sectors in automotives, electronics, pharmaceuticals and medical technology, ICT, and agriculture – can bring both excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigorous legal structures and laws.
Ensuring compliance without the sufficient knowledge of the country’s laws also adds to the stress of getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.
Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of an International Professional Employer Organization (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.
This can be best utilized when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.
Hiring Staff
in Hungary
The economy of Hungary is a high-income mixed economy, ranked as the 9th most complex economy according to the Economic Complexity Index. Hungary is part of the European Single Market which represents more than 448 million consumers. Several domestic commercial policies are determined by agreements among European Union members and by EU legislation.
Hungary is a member of the Organization for Economic Co-operation and Development (OECD) with a very high human development index and a skilled labor force, with the 13th lowest income inequality in the world. The Hungarian economy is the 57th-largest economy in the world (out of 188 countries measured by IMF) with $265.037 billion annual output and ranks 40th in the world in terms of GDP per capita measured by purchasing power parity. Hungary has an export-oriented market economy with a heavy emphasis on foreign trade; thus, the country is the 35th largest export economy in the world.
The country had more than $100 billion of exports in 2015, with a high trade surplus of $9.003 billion, of which 79% went to the European Union (EU) and 21% was extra-EU trade.
Hungary’s productive capacity is more than 80% privately owned, with 39.1% overall taxation, which funds the country’s welfare economy. On the expenditure side, household consumption is the main component of GDP and accounts for 50% of its total, followed by gross fixed capital formation with 22% and government expenditure with 20%.
Hungary continues to be one of the leading nations in Central and Eastern Europe for attracting foreign direct investment: the inward FDI in the country was $119.8 billion in 2015, while Hungary invests more than $50 billion abroad.
As of 2015, the key trading partners of Hungary were Germany, Austria, Romania, Slovakia, France, Italy, Poland, and the Czech Republic. Major industries include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism (in 2014 Hungary welcomed 12.1 million international tourists).
Hungary is the largest electronics producer in Central and Eastern Europe. Electronics manufacturing and research are among the main drivers of innovation and economic growth in the country. In the past 20 years Hungary has also grown into a major center for mobile technology, information security, and related hardware research. Hungary maintains its own currency, the Hungarian forint (HUF), although the economy fulfills the Maastricht criteria with the exception of public debt. The ratio of public debt to GDP is significantly below the EU average at 66.4% in 2019.
The Hungarian National Bank was founded in 1924, after the dissolution of the Austro-Hungarian Empire. It is currently focusing on price stability, with an inflation target of 3%.
SMEs in the ‘non-financial business economy’ in Hungary account for more than two thirds (68.3%) of total employment, slightly above the EU average of 66.6%.
The SME share of 54.1% of total value added is slightly below the EU average of 56.4%. The productivity of Hungarian SMEs, calculated as value added per person employed, is €19,800, less than half the EU average of €44,600.
The average number of people employed by Hungarian SMEs is 3.3, which is lower than the EU average of 3.9. As in many EU countries, the most important SME sectors in terms of both employment and value added are manufacturing and wholesale and retail trade, which together account for more than 40% of SME employment and SME value added.
HUF260,000.00 (for professional workers)
Tax Identification Number (“adóazonosító jel”)
Corporate Tax Number
TAJ number (social insurance number)
Hiring Staff
in Hungary
The economy of Hungary is a high-income mixed economy, ranked as the 9th most complex economy according to the Economic Complexity Index. Hungary is part of the European Single Market which represents more than 448 million consumers. Several domestic commercial policies are determined by agreements among European Union members and by EU legislation.
Hungary is a member of the Organization for Economic Co-operation and Development (OECD) with a very high human development index and a skilled labor force, with the 13th lowest income inequality in the world. The Hungarian economy is the 57th-largest economy in the world (out of 188 countries measured by IMF) with $265.037 billion annual output and ranks 40th in the world in terms of GDP per capita measured by purchasing power parity. Hungary has an export-oriented market economy with a heavy emphasis on foreign trade; thus, the country is the 35th largest export economy in the world.
The country had more than $100 billion of exports in 2015, with a high trade surplus of $9.003 billion, of which 79% went to the European Union (EU) and 21% was extra-EU trade.
Hungary’s productive capacity is more than 80% privately owned, with 39.1% overall taxation, which funds the country’s welfare economy. On the expenditure side, household consumption is the main component of GDP and accounts for 50% of its total, followed by gross fixed capital formation with 22% and government expenditure with 20%.
Hungary continues to be one of the leading nations in Central and Eastern Europe for attracting foreign direct investment: the inward FDI in the country was $119.8 billion in 2015, while Hungary invests more than $50 billion abroad.
As of 2015, the key trading partners of Hungary were Germany, Austria, Romania, Slovakia, France, Italy, Poland, and the Czech Republic. Major industries include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism (in 2014 Hungary welcomed 12.1 million international tourists).
Hungary is the largest electronics producer in Central and Eastern Europe. Electronics manufacturing and research are among the main drivers of innovation and economic growth in the country. In the past 20 years Hungary has also grown into a major center for mobile technology, information security, and related hardware research. Hungary maintains its own currency, the Hungarian forint (HUF), although the economy fulfills the Maastricht criteria with the exception of public debt. The ratio of public debt to GDP is significantly below the EU average at 66.4% in 2019.
The Hungarian National Bank was founded in 1924, after the dissolution of the Austro-Hungarian Empire. It is currently focusing on price stability, with an inflation target of 3%.
SMEs in the ‘non-financial business economy’ in Hungary account for more than two thirds (68.3%) of total employment, slightly above the EU average of 66.6%.
The SME share of 54.1% of total value added is slightly below the EU average of 56.4%. The productivity of Hungarian SMEs, calculated as value added per person employed, is €19,800, less than half the EU average of €44,600.
The average number of people employed by Hungarian SMEs is 3.3, which is lower than the EU average of 3.9. As in many EU countries, the most important SME sectors in terms of both employment and value added are manufacturing and wholesale and retail trade, which together account for more than 40% of SME employment and SME value added.
HUF260,000.00 (for professional workers)
Tax Identification Number (“adóazonosító jel”)
Corporate Tax Number
TAJ number (social insurance number)
The Main Sectors of the Hungarian Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
The Main Sectors of the Hungarian Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
Commercial Laws in
Hungary
Commercial Laws in
Hungary
