Ensuring continued access to R&D incentives in Hungary remains a strategic priority for the country, as technological renewal, innovation and the creation of high value-added jobs are all critical to the country’s long-term competitiveness. Companies can choose from several forms of support, including tax incentives, schemes supporting the establishment of new R&D centres, and funding available for research and development projects.
R&D incentives in Hungary are designed to encourage companies to:
- establish new R&D capacities,
- pursue technological development and innovation,
- create high value-added R&D jobs, and
- translate research results into product development, prototype manufacturing and broader technological advancement.
Which costs can be covered under R&D incentives in Hungary?
Most available schemes support the following activities and cost items:
- salaries and related payroll costs of employees engaged in R&D,
- costs of R&D equipment and development infrastructure,
- material costs directly linked to research projects, and
- subcontracted research and development activities.
Which R&D incentive schemes are expected to be available in 2026?
1. VIP cash subsidy for the establishment of new R&D centres
Under this scheme, support is not focused primarily on individual project costs, but rather on the establishment or expansion of a new R&D centre. Eligible costs may include the development of research laboratories and technical facilities, the acquisition of specialised R&D equipment and machinery, software, intangible assets and licences, as well as the employment costs of newly hired R&D staff for the first 24 months.
This scheme is primarily intended to support the build-out of R&D capacity and the creation of new jobs. Further details are available here: Support for the Establishment of New R&D Centres – IBSH
2. VIP cash subsidy for R&D projects
The VIP cash subsidy available for R&D projects is designed for companies planning to launch complex, technology-driven developments. The scheme is particularly attractive for businesses preparing projects with substantial professional content, involving multiple scientific disciplines, or exploring new technologies that require advanced infrastructure.
Further details are available here: VIP Cash Subsidy for Research and Development – IBSH
3. GINOP Plus 2.1.1-24 – support for innovation projects in priority areas
The objective of the GINOP Plus 2.1.1-24 call is to enable companies to implement R&D projects that result in new products, technologies or services. Eligible expenditure is specifically linked to R&D activities, making the programme an effective tool for supporting the full development cycle. The scheme is particularly beneficial for companies aiming to create genuine technical innovation and that already have, or are prepared to build, significant professional and technological capacity.
Further details are available here: GINOP Plus 2.1.1-24 R&D Grant – IBSH
What is the general aid intensity for R&D incentives in Hungary?
The level of available support depends on several factors, including the structure of the R&D project, the size of the company, the specific funding scheme, and the location where the project is implemented.
In practice, the available aid intensity for R&D incentives in Hungary generally ranges between 25% and 75%.
SME’s and locations outside of Budapest are preferred.
What are the key factors to claim R&D incentives in Hungary?
Whether a company is applying for a tax incentive, a grant scheme or a VIP cash subsidy, the following core requirements generally apply:
- the company must carry out genuine R&D activity,
- the project must demonstrate clear technical or scientific novelty,
- the project needs to be qualified as R&D by the National Research, Development and Innovation Office
- the company must have adequate financial and professional capacity, and
- project costs must be tracked separately and managed in a transparent manner.
If you would like to assess your company’s R&D funding opportunities for 2026, please feel free to contact our professional team.
