The importance of research and development (R&D) and high-value-added services is continuously growing in the Hungarian economy. The state provides targeted R&D incentives in Hungary for companies planning to launch new R&D activities, establish or expand service centers, or implement certified R&D projects—especially when these are located outside Budapest and employ highly skilled professionals. Below is a summary of the three main incentive opportunities available through individual government decisions (EKD), along with key details.
R&D Incentives in Hungary for New R&D Activities
Eligible Applicants
Medium and large enterprises with an average workforce of at least 50 employees, located anywhere in Hungary except Budapest.
Eligible Costs
Applicants may choose to cover:
- CAPEX costs necessary for R&D activities (land, buildings, equipment, intangible assets), or
- Personnel costs related to new jobs for 24 months.
Incentive Amount
Depending on the project location, the incentive can reach 60–70%, with the final amount determined on a case-by-case basis.
Incentive Form
Non-repayable grant, disbursed on a reimbursement basis. Medium-sized enterprises may request up to 25% advance payment.
Conditions
- Establishment of a new R&D facility or expansion of an existing facility into R&D activities where none existed before.
- New activity sectors:
- 72.10 – Natural sciences, engineering research, experimental development
- 72.20 – Social sciences, humanities research, experimental development
- Creation of at least 10 new R&D positions (minimum 50% with higher education degrees).
- Jobs must be maintained for at least 3 years (medium enterprises) or 5 years (large enterprises).
- The applicant must establish a new R&D collaboration with a Hungarian university.
Incentive for Service Centers
Eligible Applicants
Small, medium, and large enterprises outside Budapest.
Eligible Costs
- CAPEX costs for the implementation of service/R&D activities, or
- Personnel costs related to new positions for 24 months.
Incentive Amount
Depending on location, up to 60–70%, with final amounts determined individually.
Incentive Form
Non-repayable grant, reimbursed after expenses. Medium enterprises may request up to 25% advance.
Conditions
- The supported activities fall under the following NACE codes:
- 62.10 – Computer programming
- 62.20 – IT consultancy
- 63.10 – Data processing and hosting
- 69.20 – Accounting and auditing activities
- 70.20 – Business consulting
- 71.12 – Engineering activities
- 72.10 / 72.20 – Scientific R&D
- 73.20 – Market research
- 78.10 – Employment placement
- 82.10 / 82.20 – Administrative and customer service activities
- Creation of at least 25 new jobs.
- Job retention: 3 years for medium enterprises, 5 years for large enterprises.
- Establishment of a new R&D facility or expansion of existing facilities and/or related service activities.
R&D Incentives in Hungary for R&D Projects
Eligible Applicants
Medium and large enterprises with at least 50 employees, anywhere in Hungary.
Eligible Costs
Costs for certified R&D projects planned to be implemented within 3 years, including:
- Personnel costs: salaries of researchers and developers
- Depreciation: use of buildings, equipment, and assets during the project
- Material costs: up to 25% of total eligible costs
- Rent: office, plant, or facility rental for the project duration
- Contract research: up to 25% with non-university partners, up to 50% with university partners
Incentive Amount
- Applied research: 50% of eligible costs
- Experimental development:
- Budapest: 25%
- Other regions: 40%
Incentive Form
Non-repayable grant, reimbursed post-expenditure.
Conditions
- Projects must have at least €1 million in eligible costs.
- Projects are implemented over 1–3 years.
- R&D workforce must increase by at least 10 employees, retained for at least 2 years after project completion.
Practical Example – How the Incentive Works in Practice
A pharmaceutical company launching new R&D activities in Tiszaújváros
A pharmaceutical company previously focused solely on production at its Tiszaújváros facility. The company decided to start research and active pharmaceutical ingredient development at the same site.
Project Parameters
- Investment value: €1 million (building renovation, equipment, software licenses)
- New positions: 15 (8 researchers, 7 support staff)
- Job creation: gradual over 3 years
- Eligible personnel costs:
- Year 1: HUF 86.4 million (6 employees)
- Year 2: HUF 172.8 million (12 employees)
- Year 3: HUF 129.6 million (9 employees)
- Year 4: HUF 43.2 million (3 employees)
- Total: HUF 432 million
Since personnel costs exceed the investment value (HUF 409 million), the company chose them as the base for the incentive. The granted rate was 40%, i.e., HUF 172.8 million non-repayable grant, disbursed over four years, offsetting operational costs of the new R&D activities.
EKD incentives allow medium and large companies to receive hundreds of millions of HUF in non-repayable grants for genuine development, job creation, and domestic knowledge transfer. These schemes are complex and require detailed preparation, so consulting a professional partner from the project concept stage is highly recommended.
If you want to understand how your company could fit into this incentive structure, or if you already have a project and are unsure about eligibility, our expert team can guide you through the entire process.
