Minister of National Economy Márton Nagy has announced that the Demján Sándor SME 1+1 Investment Incentive Scheme will soon be available again, providing significant development resources to domestic micro, small and medium-sized enterprises (SMEs). The program also funds the purchase of new technological equipment, information and communication developments, renewable energy sources, software, and commercial vehicles. What is eligible for ...
The Hungarian government plans to introduce a new incentive program for domestic manufacturing large companies that produce at least partially for the U.S. market. This state funding will be available under the VIP Hungarian Funding Program. The non-refundable VIP cash incentive aims to strengthen the international competitiveness of Hungarian industry and facilitate the implementation of strategically significant investments—specifically for companies whose exports to the United States account for at least 10% of total exports. The program may be particularly attractive for companies planning to establish new production capacities, expand existing plants, or implement new technologies in the coming years while also targeting overseas markets. Types of Investments Eligible for Funding VIP cash incentive grants investments that contribute to Hungary’s long-term economic growth. Eligible activities include: Special Advantages for Companies Exporting to the U.S. For companies targeting the U.S. market, the VIP ...
Péter Szijjártó, Hungary’s Minister of Foreign Affairs and Trade, announced at the conference of the Hungarian Automotive Component Manufacturers Association (MAJOSZ) in Zalaegerszeg that the government will launch a new, targeted investment incentive scheme to support projects aimed at manufacturing zero-emission technologies. The objective of the scheme is to encourage investments in Hungary that contribute—through the products they manufacture—to the transition toward a climate-neutral economy. What is CISAF? – The framework behind the program The new programme is based on the Clean Industrial State Aid Framework (CISAF) adopted by the European Commission, which entered into force on 25 June 2025. It replaced the Temporary Crisis and Transition Framework (TCTF) and aims to support industrial decarbonisation. What types of investments are supported? The programme supports the development and manufacturing of green technologies that reduce industrial emissions and promote climate neutrality. Eligible technologies include: Aid intensity and conditions by region While the detailed rules of the scheme are still to be published, CISAF defines the following framework conditions: ...
On June 25, 2025, the European Commission adopted the Clean Industrial State Aid Framework (Clean Industrial State Aid Framework, „CISAF”), which allows Member States to accelerate the green transition of the manufacturing industry, the spread of clean energy and technology, and the decarbonization of the sector through targeted state aid. How long can Member States continue to introduce state aid to support the green transition? CISAF will apply until the end of 2030, replacing the temporary crisis and transition framework (TCTF) currently in force, and will provide long-term predictability for businesses and investors. The entry into force of CISAF does not mean that these funds will automatically be available to businesses, as it is now up to Member States to launch their own state aid programs that fit within the framework. What are your main focus areas and what level of grant can be requested? Within the framework of CISAF, the European Commission has defined the conditions for state aid and the level of grant that can be provided in several priority areas, such as the promotion of renewable energy, the introduction of low-carbon fuels, the transition to non-fossil fuels, industrial decarbonization, and investment funding for clean manufacturing technologies. ...
The vast majority of greenfield investments in Hungary are concentrated in the battery and automotive industries. What Is a Greenfield Investment? A greenfield investment refers to a project that involves building an entirely new facility on previously undeveloped land. Unlike brownfield investments, which expand or modify existing infrastructure, greenfield projects start from scratch—constructing new manufacturing plants, warehouses, logistics hubs, or any production or service facility. These developments require significant capital, have long-term horizons, and bring substantial economic and social impact by creating jobs, developing infrastructure, increasing local tax revenues, and reshaping the structure of Hungary’s manufacturing sector. Where Is Investment in Hungary Most Active? Between 2020 and 2025, 64 companies announced greenfield investments in Hungary totaling over €21 billion. Several of these projects are set to begin operations by late 2025 or early 2026. Pest County (including Budapest) leads in the number of investments, with 19 companies choosing this logistically advantageous region. It’s followed by Hajdú-Bihar County with 10 investments and Borsod-Abaúj-Zemplén with 7. ...
Recent economic challenges have forced many companies to rethink their plans. However, these changes affect not only business strategies but also the use and usability of previously awarded investment funding. This year, we have encountered numerous cases where our clients’ plans have significantly changed due to shifts in the market environment, putting their funding at risk. Based on our experience, the following three factors are the most common reasons why companies become uncertain about whether they can actually utilize and retain their funding. The good news is that, with proper professional guidance, these situations can often be resolved—and the funding can usually be preserved. 1. Suspension or major restructuring of the investment Rapidly changing business priorities and evolving cost structures may lead to previously planned projects—such as real estate developments or large-scale asset acquisitions—being deprioritized. In such cases, it is crucial to reassess the funding agreement and reevaluate the project’s objectives. Key questions: In many cases, a compromise solution can be found that allows the funding to be retained—for example, by partially fulfilling the original objectives or incorporating new development elements that align with current business needs. 2. Difficulties in creating or maintaining committed jobs A decline in orders, reduced shifts, or downsizing of production capacity often leads to companies being unable to meet the headcount commitments set out in the funding agreement. This can be particularly critical during the maintenance period, when opportunities for modification are significantly limited. The key: proactive replanning In such cases, careful planning is essential: companies must assess how to remain compliant with legal and contractual requirements in a changed business environment and how obligations can be adjusted without jeopardizing the lawful use of the funding. 3. Changes in company structure: transformation, relocation, mergers Companies naturally respond to economic changes by consolidating sites, relocating operations, or restructuring ownership. However, these changes can significantly impact not only operations but also the validity of funding agreements and the fulfillment of commitments. In such situations, it is essential to ensure: A single missed notification or misinterpreted contractual provision can have serious consequences—in extreme cases, it may even lead to the repayment of already disbursed funding. At the same time, our experience shows that there is almost always a professionally sound solution that allows the funding to be retained, provided the changes are handled in ...
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