Hungary flag Hungary: Investing in Hungary

Investment framework and opportunities in Hungary

Procedures Relative to Foreign Investment

Freedom of Establishment
Guaranteed
Acquisition of Holdings
There are no general limits on foreign ownership or control: up to 100% foreign ownership is permitted, with the exception of designated "strategic" holdings in some defence-related industries.
However, in recent years the national government announced that at least half of the banking, media, energy, and retail sectors should be in Hungarian hands. This resulted in an increased Hungarian ownership in the banking sector.
Obligation to Declare
In May 2020 a decree has been adopted, according to which investments by foreign investors acquiring an interest exceeding (i) 10 % and a value of HUF 350 million; (ii) 15 %, 20 % or 50 % irrespective of its value, or (iii) 25 % if acquired by more than one foreign investor, require the approval of the Minister of the National Economy. The scope of the decree is wide, involving investments in the following sectors: manufacturing of medicines, medical devices or other chemicals, fuel production, telecommunications, retail and wholesale (including motors and cars), manufacturing of electronical devices, machinery, steel and vehicles, defence industry (e.g. manufacturing and trade of arms and ammunition as well as technologies used for military purposes), power generation and distribution, services connected to the state of emergency, financial services (including insurance, brokering and other services), processing of food (including meat, milk, grains, tobacco, fruits and vegetables), agriculture, transport and storage, construction (including the production of building materials), healthcare, tourism (hospitality and cafeteria services), etc. Such screening mechanism was adopted in response to the COVID-19 epidemic and should be in vigour only until 31 December 2020.
Competent Organisation For the Declaration
Ministry of Interior
Ministry of National Economy
Requests For Specific Authorisations
Since 2018, a law on investment screening is in vigour, requiring foreign investors seeking to acquire more than a 25% stake in a Hungarian company in certain “sensitive sectors” (to seek approval from the Interior Ministry of Interior.  Such sectors include defence, intelligence services, electric energy, certain financial services, gas, water utility, and electronic information systems for the public administration.

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Investment Opportunities

Investment Aid Agency
Hungarian Investment Promotion Agency
EUGO Hungary (Ministry of Interior) (website temporarily unavailable)
Tenders, Projects and Public Procurement
Ted - Tenders Electronic Daily, Business opportunities in EU
Tenders Info, Tenders in Hungary
Other Useful Resources
Official News Portal About Hungary
Budapest Chamber of Commerce and Industry

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Latest Update: September 2022

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