From April 2025, three different VIP cash incentive program will provide Hungarian State Funding for Research & Development projects for medium and large companies planning innovation, research & development, or service investments/projects in Hungary.
1. Grant for New Research & Development Activities
Hungarian State Funding for Research & Development is available to medium and large companies that plan to start R&D activities at an existing site or establish a new R&D center in Hungary (excluding Budapest).
Eligibility requirements:
- At least 10 new R&D jobs must be created.
- A new university agreement must be concluded.
The grant can be applied to either:
- Personnel-related costs for the newly created jobs (for 24 months), or
- CAPEX-related costs of the project (land, building, machinery, intangible assets, etc.).
The amount of funding is determined individually based on the project location and company size. According to the legislation, fundingcan reach up to 30–70%.
2. Funding for Establishing Service Centers
This grant is aimed at small, medium, and large companies that in Hungary (excluding Budapest):
- Plan to establish a new service and/or R&D center, or
- Expand existing operations with business-supporting, IT, engineering, or other high value-added services, including research & development.
The grant can be requested even if the company does not exclusively operate in these areas.
Main requirements:
- At least 25 new jobs must be created.
- The activity must fall under specified TEÁOR codes (e.g., IT, engineering consulting, accounting, customer service, research & development, etc.).
The grant can be used for:
- Salary costs for the new jobs (max. 24 months), or
- CAPEX investments (land, building, machinery, software, etc.).
The non-refundable grant is provided in a post-financing form, with up to 25% advance for medium-sized companies. Depending on the project location and company size, funding intensity can reach 30–70%.
3. Grant for Qualified R&D Projects
This grant is suitable for medium and large companies planning one or more R&D projects to be implemented within 1–3 years in Hungary (including Budapest). This grant may also help reduce operational costs.
Eligibility requirements:
- The project must have at least €1 million in eligible costs.
- The company must create at least 10 new R&D jobs.
- The new employees must be retained for at least 2 years after project completion.
The R&D EKD grant can be applied to project costs, including:
- Researchers’ salaries (existing or new employees)
- Depreciation of equipment and buildings
- Material costs (up to 25%)
- Contract research, especially with a higher education partner (up to 50%)
The amount of non-refundable grant is determined individually, but:
- For applied research, up to 50%
- For experimental development: 25% in Budapest, up to 40% in other locations
Further details, examples, and calculations are provided in our blog post.
Read the blog post →
If you have questions, feel free to contact our expert colleagues for customized information.
