The importance of research & development and high value-added services continues to grow in the Hungarian economy. The government supports companies with targeted R&D subsidies if they plan to launch new R&D activities, establish or expand service centers, or implement certified R&D projects—especially when these initiatives are located in rural areas and employ a highly qualified workforce. Below is a summary of the three main subsidy types available under the VIP Cash Grant scheme, along with their details.
VIP Cash Grant for New R&D Activities
Who can apply?
Medium-sized enterprises and large companies with an average headcount of at least 50 employees, operating in any Hungarian municipality except Budapest.
What costs are eligible?
Depending on the applicant’s choice, the subsidy can be used for:
- CAPEX costs (land, buildings, equipment, intangible assets), or
- Personnel costs related to newly created jobs (up to 24 months).
How much subsidy is available?
Depending on the project location, state aid of up to 60–70% may be granted, subject to individual decision.
What is the form of the subsidy?
Non-repayable subsidy provided on a post-financing basis. For medium-sized enterprises, an advance cash grant of up to 25% is also available.
What are the conditions?
- Establishing a new R&D facility or expanding the scope of activity of an existing one with R&D (in a location where R&D was not previously conducted).
- New activity categories:
- 72.10 – Natural sciences and engineering R&D
- 72.20 – Social sciences and humanities R&D
- At least 10 új K+F munkahely létesítése (minimum 50%-ban felsőfokú végzettségű munkavállalók).
- Job retention: minimum 3 years for medium-sized enterprises, and 5 years for large companies.
Establishing a new R&D cooperation with a Hungarian university.
VIP Cash Grant for Service Centers
Who can apply?
Small, medium, and large enterprises operating in any Hungarian municipality except Budapest.
The subsidy is available even if the company has mixed activities and does not operate exclusively as a service or R&D center.
What costs are eligible?
- CAPEX costs necessary for launching the service/R&D activity (land, buildings, equipment, intangible assets), or
- Personnel costs related to the new jobs (up to 24 months).
How much subsidy is available?
Depending on the project location, state aid of up to 60–70% may be granted, subject to individual decision.
What is the form of the subsidy?
Non-repayable subsidy, provided as post-financing. For medium-sized enterprises, a 25% advance cash grant is also available.
What are the conditions?
- The activity must fall under one of the following NACE (TEÁOR) codes:
- 62.10 – Computer programming
- 62.20 – IT consultancy
- 63.10 – Data processing, hosting
- 69.20 – Accounting and auditing
- 70.20 – Management consultancy
- 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
- At least 25 new jobs létesítése.
- Job retention:
- 3 years for medium-sized enterprises
- 5 years for large companies
Establishment or expansion of an R&D facility and/or provision of services related to the above activities.
VIP Cash Grant for R&D Projects
Who can apply?
At least 50 fős átlaglétszámmal rendelkező középvállalkozások és nagyvállalatok Magyarország területén bárhol.
What costs are eligible?
The subsidy can be used for R&D projects certified by the National Research, Development and Innovation Office (NKFIH), planned to be implemented within 3 years, covering:
- Personnel costs: salaries of R&D professionals
- Depreciation: buildings, equipment used during the project
- Material costs: up to 25% of total eligible costs
- Rental Fee: Rental fee of the office, production hall, or real estate serving as the location of the research and development project for the duration of the project.
- Contract research::
- Up to 25% if conducted with a non-academic partner
- Up to 50% if conducted with a higher education institution
How much subsidy is available?
- For applied research: up to 50% of eligible costs
- Experimental development esetén:
- Budapest 25%
- Other regions in Hungary: 40%
What is the form of the subsidy?
Non-repayable subsidy provided as post-financing.
What are the conditions?
- Projects must have at least EUR 1 million in eligible costs
- Projects must be implemented within 1–3 years
- The company must increase its R&D headcount by at least 10 employees and retain them for a minimum of 2 years after project completion
💡 Practical Example – How the Subsidy Works in Practice
Pharmaceutical Company Case – Launching New R&D Activities in Tiszaújváros
Previously, a pharmaceutical company only operated manufacturing activities at its Tiszaújváros plant. Based on a group-level decision, the company will now also carry out drug development and active ingredient research at this site.
Project highlights:
Investment value: EUR 1 million (building conversion, equipment purchase, software licenses)
New jobs: 15 employees (8 R&D professionals, 7 support staff)
New positions to be created graduallyover 3 years
Eligible personnel costs:
Year 1: HUF 86.4 million (6 people)
Year 2: HUF 172.8 million (12 people)
Year 3: HUF 129.6 million (9 people)
Year 4: HUF 43.2 million (3 people)
Total: HUF 432 million
As the personnel costs exceed the investment value (HUF 409 million), the company chose them as the subsidy base. The approved subsidy amount is 40%, i.e., HUF 172.8 million in non-repayable state aid, disbursed over four years to ease operational costs during the launch of the new activity.
VIP Cash Grants allow medium and large enterprises to access non-repayable state aid worth hundreds of millions of forints if they aim for real development, job creation, and domestic knowledge transfer. However, the schemes are complex and require thorough preparation, so it's recommended to consult with an expert partner already in the idea phase.
🎯 Curious how your company might fit into such a subsidy scheme? Already have a project and unsure about eligibility? Our expert advisors are here to guide you through the entire process.
