The revised conditions for one of the key instruments of economic development, the Individual Government Decisions (EKD), introduce new benefits for businesses, according to the Hungarian Investment Promotion Agency, HIPA.
The updated framework places special emphasis on research and development, the promotion of high intellectual value-added activities, and supplier cooperation. Conditions for investment subsidies in the manufacturing sector have been made more flexible to better meet corporate needs. These include criteria such as high value creation, R&D, dual education, and the strengthening of local suppliers.
A notable innovation for SMEs is that 25% of the subsidy may be paid in advance under certain conditions. Another significant change concerns training subsidies aimed at improving employee skills. These no longer require a capacity expansion or the establishment of a service center. Instead, eligible SMEs and large enterprises must invest at least EUR 250,000 in training programs for a minimum of 25 employees within three years.
Under the new rules, companies with as few as 50 employees can now apply for R&D support jointly with their parent company.
Additional support is available for companies that protect their innovations through patent applications filed in Hungary, Europe, or internationally.