As of April 18, 2025, the Hungarian Government has again amended the conditions for claiming grant under Unique Government Decisions (VIP cash grant) and introduced a new R&D Funding in Hungary specifically aimed at funding research and development activities. The goal of these changes remains to prioritize high value-added activities and encourage competitive, innovative corporate investments. The new and modified funding options are summarized below.
VIP cash incentive funding for Complex Investments – Focus on Efficiency and Regional Development
In the CAPEX-based VIP cash incentive program (linked to tangible asset investments), several favorable changes have been introduced for companies. The new regulations may be particularly advantageous for medium-sized enterprises, while also imposing significant performance and efficiency expectations on applicants.
Under the amendment, projects with a total value of at least €2 million may now be eligible for funding in the following counties, excluding county seats: Baranya, Bács-Kiskun, Békés, Borsod-Abaúj-Zemplén, Csongrád-Csanád, Heves, Nógrád, Somogy, Tolna, and Zala. This territorial expansion aims to increase the attractiveness of rural areas for investment. Another important benefit is that small and medium-sized enterprises (SMEs) can request up to 25% of the grant as an advance.
During the maintenance period, companies must increase their revenue by at least €15 million and their total wage bill by €2 million.
Additionally, applicants must fulfill at least one of the following commitments:
- Increase wages per employee by at least 30%;
- Increase revenue per employee by at least 30%;
- Create at least 25 new jobs.
Furthermore, at least two of the following commitments must also be met:
- Create at least 10 new R&D jobs;
- Produce at least 30% of the company’s energy consumption from renewable sources;
- Increase the number of student employees by at least 10 (dual training, vocational training, university students, etc.);
- Increase R&D expenditures by at least 30%;
- Ensure that at least 30% of products and services come from suppliers within 100 km of the investment location;
- Establish collaboration with HIPA within the supplier development program.
Detailed Overview of the VIP cash incentive program – New R&D Funding in Hungary for Rural R&D Centers
Simultaneously with the amendments, a new R&D funding program has been introduced in Hungary, specifically designed for establishing rural R&D centers. The program is available to large companies and medium-sized companies employing at least 50 people.
Applicants may choose to use the grant either for building research infrastructure (including all related equipment) or for personnel costs for newly hired researchers (up to 36 months).
Conditions of the funding:
- Applicable only to research and development activities;
- At least 10 new R&D jobs must be created;
- Applicants must establish an R&D collaboration with a Hungarian university;
- No project certification is required;
- No minimum investment amount is specified, and no collateral is required;
- SMEs can also request up to 25% advance.
Detailed Overview of Improved Conditions for R&D funding in Hungary based on projects
In addition to the program for establishing new R&D centers, the conditions of the existing R&D VIP cash incentive program have also been amended. The two research and development funds can be combined.
Key changes:
- Now available to medium-sized companies with at least 50 employees;
- If the company files a patent related to the granted project, a higher funding rate may be granted;
- SMEs are also eligible for the 25% advance.
Detailed Overview – VIP cash incentive for Corporate Training
The training grant is now also available in a renewed format, as a standalone project without requiring additional investments. This can significantly ease the financing of operating costs and lost wages related to corporate training programs.
New conditions:
- Available only to medium-sized and large companies employing at least 100 people;
- The training period has increased from 2 to 3 years, allowing for longer-term training plans;
- The total project value must reach €250,000 over the three years (including trainer fees, lost wages, material costs, and operating costs);
- A minimum of 25 employees must participate in the training program, but the company does not need to increase its workforce.
For further details, personalized incentive opportunities please contact our experts.
