{"id":4110,"date":"2026-08-24T13:04:39","date_gmt":"2026-08-24T11:04:39","guid":{"rendered":"https:\/\/ibsh.hu\/?page_id=4110"},"modified":"2026-08-24T13:18:22","modified_gmt":"2026-08-24T11:18:22","slug":"development-tax-allowance","status":"publish","type":"page","link":"https:\/\/ibsh.hu\/en\/development-tax-allowance\/","title":{"rendered":"Asset acquisition and investment through a corporate income tax allowance"},"content":{"rendered":"
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Optimize Your Business Growth with State Support!<\/strong><\/strong><\/strong><\/p>\n\n

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Development Tax Allowance<\/strong><\/strong><\/h1>\n\n

Financial challenges often limit business expansion, but with the latest\u00a0state support<\/strong>\u00a0and expert guidance, you can confidently take the next steps toward\u00a0growth and innovation<\/strong>.
<\/a><\/p>\n\n\u00c9rdekel a p\u00e1ly\u00e1zat<\/a>\n<\/div>\n<\/div>

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Asset acquisition and investment through a corporate income tax allowance<\/strong><\/h2>\n\n

Key Information About This Subsidy<\/h3>\n\n
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The development tax allowance<\/strong> is an important instrument of Hungary\u2019s investment promotion system, allowing companies to claim a tax allowance against their corporate income tax liability in connection with certain qualifying investments.<\/p>\n\n

The scheme may be particularly relevant for companies planning machinery and equipment purchases, technological development, capacity expansion, the construction of new real estate, other long-term investments and\/or job creation<\/strong>. The allowance is available to both large enterprises and small and medium-sized enterprises.<\/p>\n\n

The development tax allowance can generate significant financial savings in connection with an investment, but it is important to note that, in this case, it is not sufficient simply to report the relevant data in the corporate income tax return. The required notification or \u2013 in the case of certain large projects \u2013 application must be submitted before the investment starts<\/strong>.<\/p>\n\n

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<\/path><\/svg><\/span>What does the development tax allowance mean for companies?<\/strong><\/span><\/h4>\n\n

The development tax allowance is not a directly paid cash grant, but a corporate income tax allowance<\/strong>. If the eligibility criteria are met, the company may use the tax allowance related to the investment or job creation against its corporate income tax liability.<\/p>\n\n

The tax allowance may be claimed annually up to 80% of the calculated corporate income tax liability<\/strong>. The utilisation period is long: the allowance may first be used in the tax year following the commissioning of the investment \u2013 or, at the company\u2019s discretion, already in the tax year of commissioning \u2013 and during the following 12 tax years<\/strong>, meaning that it may be applied for up to 13 tax years in total<\/strong>.<\/p>\n\n

This can be particularly valuable for profitable companies that are expected to have sufficient corporate income tax liabilities in the years following the investment to make effective use of the allowance.<\/p>\n<\/div>\n\n

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<\/path><\/svg><\/span>What minimum investment size is required to claim the development tax allowance?<\/strong><\/span><\/h4>\n\n

The minimum investment value depends on the size of the company, the location of the investment and, in certain cases, the type of investment.<\/p>\n\n

Type of investment \/ company<\/strong><\/strong><\/td>Minimum investment value at present value<\/strong><\/strong><\/td><\/tr>
Investment by a small enterprise<\/td>HUF 50 million<\/strong><\/strong><\/td><\/tr>
Investment by a medium-sized enterprise<\/td>HUF 100 million<\/strong><\/strong><\/td><\/tr>
General investment category<\/td>HUF 3 billion<\/strong><\/strong><\/td><\/tr>
Investment implemented in the administrative area of a designated beneficiary municipality<\/td>HUF 1 billion<\/strong><\/strong><\/td><\/tr>
Investment implemented in a free enterprise zone<\/td>HUF 100 million<\/strong><\/strong><\/td><\/tr>
Job-creation investment<\/td>No minimum investment value; at least 1 new job must be created and maintained<\/strong><\/td><\/tr>
Stand-alone environmental investment<\/td>HUF 100 million<\/strong><\/strong><\/td><\/tr>
Investment serving basic research, applied research or experimental development<\/td>HUF 100 million<\/strong><\/strong><\/td><\/tr>
Investment serving film and video production<\/td>HUF 100 million<\/strong><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n

For large enterprises, an additional important condition is that a development tax allowance based on regional investment aid rules is, as a general rule, available for an initial investment implemented in an assisted region outside Budapest<\/strong>. For small and medium-sized enterprises, the tax allowance may also be available in Budapest.<\/p>\n<\/div>\n\n

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<\/path><\/svg><\/span>What types of investments can benefit from the development tax allowance?<\/strong><\/span><\/h4>\n\n

One of the advantages of the scheme is that the eligible costs of the investment may include several different types of assets and property.<\/p>\n\n

Typical eligible costs may include:<\/p>\n\n