WONDERING HOW TO BRING YOUR INVESTMENT PLANS TO LIFE?
STRATEGIC PARTNER
FOR LONG-TERM SUCCESS
The combination of incentives and personalized investment strategies provides a stable foundation and sustainable growth for your business. With our support, you can be at the forefront of economic growth and innovation. Rely on our expertise for long-term business success.
OUR SERVICESSTRATEGIC ADVANTAGE FOR GUARANTEED SUCCESS
UNIQUE EXPERIENCE AND EXPERTISE AT YOUR SERVICE
EXCEPTIONAL EXPERTISE
Our experts possess unparalleled experience in the fields of grants, government support, and investment advisory. Their time spent on the donor’s side and the knowledge gained in creating incentive programs provide a solid foundation for any company planning to realize investments in Hungary.
PROFESSIONAL NETWORK
Over the past 10 years, our team has forged stable professional relationships within the state incentive system in Hungary with organizations capable of providing professional services in all areas necessary for investment realization. These relationships represent a strategic advantage for your company's success.
UNIQUE PERSPECTIVE
ibsh’s team members have participated in the successful handling of over 300 VIP cash grant-involved applications, enabling them to navigate adeptly through every investment project, regardless of the type of state aid involved.
BUSINESS SUCCESS AT EVERY SCALE
MAXIMIZE YOUR GRANT RESULTS
WITH IBSH'S HELP
0
Free consultation on subsidy opportunities
ibsh cooperation
1
state aid perspective due diligence of the company and designation of dedicated ibsh contact
2
setting up an eligible project, submit the subsidy application
3
communication with the managing body and the donor
4
preparing the financial and monitoring reports
BUSINESS SUCCESS AT EVERY SCALE
MAXIMIZE YOUR GRANT RESULTS
WITH IBSH'S HELP
COMPREHENSIVE PROJECT MANAGEMENT SERVICES
Small businesses and organizations often face capacity constraints when it comes to applying for cash grants and tax incentives. ibsh completely shoulders this burden. Throughout the application process, we manage all aspects, allowing you to focus solely on decision-making. Our experts ensure that every process is smooth and efficient, facilitating the growth of your business.
Proficient guidance and consulting
Even sizable and intricate organizations, despite possessing fundamental understanding of government assistance, frequently necessitate further expert support. In this area, ibsh offers supplementary expertise, leveraging its experience gained over the past 10 years in the Hungarian state incentive system. Our goal is to proactively manage and advance our clients' affairs, expediting the processes. While companies handle administrative preparation, we provide project management and necessary consulting services, strengthening our partners in successful support processes.
Assessment of granted incentives or tax benefits, and oversight of individual sub-processes
If your company has already been awarded incentives but faces challenges during the implementation of the grant, our experts provide consulting services to ensure clarity regarding the legitimate use of the cash grant or tax incentive and possible directions for modifying the agreements. We provide all necessary support and guidance to ensure that your business properly manages the support processes and successfully navigates the challenges of grant implementation.
OUR EXPERTS' EXPERIENCE SPEAKS FOR ITSELF
WE HAVE SUPPORTED HUNDREDS OF COMPANIES TAKE THEIR NEXT STEP
Over
10
YEARS OF PROFESSIONAL EXPERIENCE
EXPERIENCE OF NEARLY
300
VIP CASH GRANT PROJECTS
Over
5
EU NOTIFICATIONS
Over
30
R&D VIP CASH GRANT
Several state incentive opportunities in Hungary worth noting
CUSTOMIZED SOLUTIONS FOR ALL INVESTMENT CHALLENGES
1. CASH GRANTS
The Hungarian Government offers non-refundable cash grant for investment projects with a minimum volume of 3 million euros and for service centers starting or expanding with at least 25 employees.
In addition to EU-co-financed opportunities, the Hungarian Government offers non-refundable VIP cash grant for research and development projects with total costs exceeding 1 million euros.
Besides EU-co-financed opportunities, the Hungarian Government provides non-refundable cash support for external and internal corporate training linked to job creation exceeding 25 positions or investments over 5 million euros.
In Hungary, there is an opportunity to apply for cash support for investments of at least 3 million euros in strategic sectors related to green transition, thanks to the Temporary Crisis and Transition Framework (TCTF) and the opportunity provided by HIPA.
Strategic sectors:
- Manufacture of equipment necessary for transitioning to a zero net emission economy, namely batteries, solar panels, wind turbines, heat pumps, electrolyzers, and equipment for carbon dioxide capture and storage; or
- Manufacture of key components primarily used as direct inputs for the production of equipment defined in the previous point; or
- Production or recovery of critically important raw materials necessary for the production of equipment and essential components defined in the previous points.
On January 1, 2024, a new cash grant program was launched under the framework of VIP cash grant (EKD), specifically for businesses affected by the introduction of the global minimum tax. These companies, instead of the development tax allowance, can apply for non-repayable cash support alongside the VIP cash grant for investments, which may be disbursed in the years following the completion of the investment. The maximum amount of profit-based VIP cash grant is the maximum regional aid available in the given area, but cannot be more than 5% of pre-tax profits.
From January 1, 2024, a new cash grant program has been launched within the framework of VIP cash grant (EKD), specifically for enterprises that bring their profits earned abroad to Hungary. Companies eligible for VIP cash grant based on profit repatriation are those that commit to implementing an investment of at least 3 million euros, depending on the location of the investment, or expanding their business service center by at least 10 employees. The maximum amount of the cash grant is the maximum regional aid available in the given area; however, the aid amount is determined from the business year following the commencement of the investment and during the maintenance period, taking into account the amount of dividends repatriated.
The Investment aid for large enterprises (NBT) provided by the Ministry of Finance is available to medium and large enterprises for asset investments (machinery, equipment, real estate) of at least HUF 100 million, if the applicant employs at least 150 people or undertakes to reach 150 employees in the 2nd year after the completion of the investment. The maximum rate of aid is the maximum regional aid available in the area concerned. The NBT aid is post-financed, but an advance may be requested for the full amount of the aid.
2. Tax Incentives
Every company has the opportunity to reduce its corporate tax obligation through various tax incentives.
Through the development tax allowance, you can reduce your tax liability by up to 20% annually and apply the tax benefit for up to 13 tax years after completing your investment.
Significant benefits can be achieved with activities such as a HUF 50 million equipment investment or the creation of a new job. Strategic investments supporting zero net emissions or contributing to energy efficiency goals also qualify for tax incentives.
From January 1, 2024, businesses have the option to choose between deducting their research and development costs as a reduction from the corporate tax base or claiming back 10% of their research and development costs in the form of a tax allowance. The tax allowance may be turned into a cash grant if the conditions are met.
The tax allowance for energy efficiency investments and renovations can be claimed against the computed tax reduced by the development tax allowance, up to 70% of its value.
This tax benefit is applicable for investments and operations aimed at achieving energy efficiency goals throughout Hungary.
3. QUALIFICATION OF RESEARCH AND DEVELOPMENT PROJECTS
It is recommended for tax incentives, and essential for VIP cash grant, that companies possess qualification from the National Research, Development and Innovation Office.
Our experienced team assists you in coordinating the qualification with state incentives and expediting the qualification process.
4. SITE SELECTION
We offer assistance in locating the optimal site in Hungary for your investment. In this process, we not only help in scouting potential locations but also in comparing and thoroughly evaluating various options. We take into account the unique needs of your business, such as logistics, infrastructure requirements, cost-effectiveness, and access to the labor market.
5. OTHER SERVICES
Every investment and new project stands on multiple pillars, with exploring and applying for state incentives being just one of them. At ibsh we pay special attention to connecting investors with partners who can provide high-quality, relevant services to all our existing and potential clients.
Whether it's planning, infrastructure development, HR, or energy-related issues, ibsh supports you to find the right partner and the right solution to ensure that every investment materializes according to plan.
THE UNIQUENESS OF IBSH
Market-leading experience gained on the donor’s side
Strategic advantage through stable professional relationships
Commitment to professional responsibility and fostering long-term partnerships
Let's work together to find the best solution for your company
Are you ready to leverage the opportunities provided by government support and grants? Fill out our form and get in touch with our experts for more details!
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