Significant changes are expected to take effect from April 2024 regarding the conditions for VIP Cash Grant (Investment Incentive in Hungary), as outlined in the draft legislation. The aim of these modifications is to encourage investments with higher added value, support economic growth, and promote the development of disadvantaged regions. These changes will impact several areas, including the minimum required investment amount, revenue and wage commitments, and new mandatory obligations.
The expected changes to the conditions of VIP cash investment incentive in Hungary are summarized in the table below:
| Current VIP Cash Grant Conditions | Expected VIP Cash Grant Conditions from April |
| Investment Size | 10 million euros in cities such as Győr, Székesfehérvár, Tatabánya, Szekszárd, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged, and Eger. 5 million euros in cities like Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár, Szolnok, and other district seat towns. 3 million euros in other towns. |
| Revenue Commitment | For new businesses: min. 3 million euros/year (9 million euros over 3 years). For existing businesses: min. 30% increase compared to the baseline period for each year of the maintenance period, in combination with the wage commitment. |
| Wage Commitment | For new businesses: min. 300,000 euros/year (900,000 euros over 3 years). For existing businesses: min. 30% increase compared to the baseline period for each year of the maintenance period, in combination with the revenue commitment. |
| Other Optional Commitments (at least 1 must be chosen) | None |
| Other Optional Commitments (at least 2 must be chosen) | None |
The new VIP Cash Grant (Investment Incentive in Hungary) regulations are also expected to allow an advance of up to 25% of the investment support to be approved for SMEs, based on the donor’s own risk assessment.
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