From 2013, the state is hoping to boost the economy of 47 regions, primarily located in Eastern Hungary, through the establishment of free enterprise zones. Businesses are offered several types of incentives in these largely disadvantaged areas with significant unemployment, in order for them to carry out as many new manufacturing investments as possible and to increase the level of employment. Such incentives include the following:
- for investments of at least HUF 100 million (approx. EUR 350,000), businesses are entitled to a 80% tax incentive for five years after putting the project into operation;
- for new hires, employers are required to pay only a part of employers’ public contributions (amounting to 28.5% of the gross salary);
- in addition to numerous other types of subsidies, employers are eligible for a subsidy of HUF 400,000 (approx. EUR 1,350) for each new employee hired.
Free entreprise zones in Hungary
