US-Hungary business relations

The United States is Hungary’s most important strategic partner and ally alongside the European Union, and this bilateral relationship has developed outstandingly in recent years. This year will be the 100th anniversary of the establishment of diplomatic relations between the two countries, and this could additionally give a boost to the bilateral relationship. The Hungarian Government is looking forward to the continued cooperation based on shared values, common interests, and mutual respect.

A mutually beneficial business relationship at a glance

  • US is Hungary’s #1 export destination outside of Europe
  • US is the 2nd largest investor in Hungary with over $12 billion in FDI.
  • 1,700 US companies employ 106,000 workers.
  • 40 out of the 50 largest US companies are present in Hungary.
  • In 2020 during the pandemic US investments created 2,496 jobs in Hungary, leading the list of job creation, this figure constituting 24.7% of all jobs created.

Why Hungary?

  • Lowest corporate and income tax rates in the EU: 15% flat income, 9% corporate tax.
  • Unemployment in Hungary was at 3.9%, one of the lowest in the EU, while the average unemployment rate in Europe was 7.3% in May 2021. (Labour Force Survey, Eurostat)
  • There are at least 36,000 more workers employed than before the pandemic.
  • According to the forecast of Fitch Ratings, Hungary's GDP will grow by 5.5% in 2022.
  • According to the IMF World Economic Outlook, Hungary’s real GDP will grow by 5.9% in
  • Well-educated workforce, 6 universities appear in the QS World University Rankings(one of the most widely read university comparisons in the world)
  • Site Selectionmagazine has selected Hungary as one of the 10 most popular investment destinations in the world for the third time in a row.
  • Stable political landscape, with quick and efficient decision-making inside government.
  • Pro-business government
  • Effective incentive programs are offered to foreign investors, including:
    • Cash Subsidiesfor investments, training, job creation, and R&D
      • Investment subsidy depends on investment size and region. Certain investments can be eligible for aid of up to 50%
      • 50%-70% of training costs may be subsidized
    • Tax incentives: reduction of corporate tax and social tax
      • Investors may be eligible for 80% reduction in corporate taxes the first year following the investment.
      • In certain cases, the employer’s contribution of the employee’s income tax (the social contribution tax) may be halved or even eliminated.

The latest US investments in Hungary

  • BorgWarner will invest $22.3 million and $14.5 million USD in two developments in Oroszlány, in north-eastern Hungary.
  • Jabil will complete a project in Tiszaújváros, in the north-east, worth just over $3.4 million USD.
  • GE to invest $11.1 million USD to expand digital development centers in Hungary.
  • IBM Client Innovation Centre has decided to create 300 new jobs, with a near $11.7 million USD investment.
  • Support Services Group (S2G) established its first European unit in Budapest.
  • Diligent to establish its global product development centre in Budapest. The investment worth over $37.5 million USD will create more than 300 high added value jobs.