Starting from April 2025, three types of VIP Cash Grants are available for medium and large enterprises planning innovation, R&D, or service-related investments or projects in Hungary.
🔬 1. Support for New Research and Development Activities
This new type of R&D VIP Cash Grant is open to medium and large enterprises that plan to launch new R&D activities at their existing Hungarian sites or to establish new R&D centers (excluding Budapest).
📌 Conditions for the subsidy:
- Creation of at least 10 new R&D jobs, and
- A new cooperation agreement must be signed with a Hungarian university.
The subsidy can be used, at the applicant’s choice, for:
- Personnel costs related to the newly created jobs (up to 24 months), or
- CAPEX-related project expenses (e.g., land, buildings, machinery, intangible assets).
💶 The subsidy amount is determined individually based on the project location and company size. According to the applicable regulations, up to 30–70% state aid may be granted.
🏢 2. Support for Establishing Service Centers
This state aid targets small, medium, and large enterprises that plan to:
- Establish a new service and/or R&D center in Hungary (excluding Budapest), or
- Expand their existing operations with business support, IT, engineering, other high value-added services, or R&D activities.
The subsidy is available even if the company does not operate exclusively in these fields.
📌 Main requirements:
- Creation of at least 25 new jobs; and
- The new activity must fall under specific NACE (TEÁOR) codes (e.g., IT, engineering consulting, accounting, customer service, R&D, etc.).
The subsidy can be used for:
- Wage costs associated with the new jobs (up to 24 months), or
- CAPEX investments (e.g., land, buildings, equipment, software, etc.).
💶 The non-repayable subsidy is paid on a post-financing basis, with up to 25% advance cash grant available for medium-sized companies. Depending on the location and company size, the subsidy intensity may reach 30–70%.
⚙️ 3. Support for Certified R&D Projects
This subsidy is ideal for medium and large enterprises planning to implement one or more R&D projects in Hungary (including Budapest) over the next 1–3 years. It also enables cost reductions on operational expenditures.
📌 Conditions for the subsidy:
- The project must involve at least EUR 1 million in eligible costs;
- At least 10 new R&D jobs must be created;
- The new employees must be retained for at least 2 years following the completion of the project.
The VIP Cash Grant can cover the following project-related expenses:
- Salaries of researchers (whether newly hired or existing staff);
- Depreciation of equipment and buildings;
- Material costs (up to 25%);
- Contract research, particularly with higher education institutions (up to 50%).
💶 The non-repayable subsidy amount is determined individually. Typical maximum rates:
- For applied research: up to 50%;
- For experimental development: up to 25% in Budapest, and up to 40% in other locations.
📖 For more details, examples, and calculations, see our blog post.
If you have any questions, feel free to contact our expert team for personalized guidance.
