At the beginning of 2002 the Economist Intelligence Unit published an analysis giving the best mark to Hungary regarding the investors' climate. The study, entitled the Worldwide Business Cost Comparison 2001, was made on the cost-competitiveness of 31 countries with a special focus on labor, business, travel and expatriate staff's costs, corporation taxes, perceived corruption levels, office and industrial rents, telecommunications and road transport. In the survey Hungary was given the "prize" for the cheapest country of all, with some of the lowest labor and expatriate costs, telecoms and corporation taxes. Its advantages include the open policy towards private enterprises, the skilled workforce, the comparatively business-friendly tax regime and the positive financing opportunities.


Hungary's attractions to investors may be summed up as follows:

• Advantageous, strategic geographic location at the heart of Europe, at the crossroads of huge markets, as close to Western Europe as it is to the countries of Eastern Europe and to the South-East region. Hungary provides companies with access to 600 million people throughout Europe, an excellent central distribution point for the region, stepping stone for investors.

• Stable political and economic environment,

• Membership in international organizations (WTO, IMF, OECD and NATO), Free trade agreements with the EU, EFTA, CEFTA, Israel, the Baltic States, Croatia and Turkey,

• Associate membership with the EU, membership of the EU from May 2004,

• Agreements concluded by Hungary with a long list of countries on the protection of investments and avoidance of double taxation,

• Liberal investment policy,

• Easy registration, no licence needed, 100 % or less ownership in all forms of entities, including branch offices,

• National treatment of foreign owned companies,

• Freedom to buy real estates (except farmland)

• Repatriation of capital and profits guaranteed by law,

• World-renowned system of education and professional training. The quality of its higher education in all natural sciences is regarded as "Excellent" according to the Hungarian EU Enlargement Business Council report. Knowledge of foreign languages is common among recent college and university graduates.

• An existing R&D base; Hungary has been placed sixth among the OECD countries in knowledge-based industries

• A motivated, creative, highly productive, and relatively cheap labor force. The Hungarian work force has proven itself to be skilled, highly educated and most of all adaptable. Indeed, foreign manufacturers with factories in Hungary have taken full advantage of the flexibility of the local work force, and its ability to learn new skills, systems, and priorities. There has been an average annual 10 % rise in overall productivity during the last 10 years.

• Hungary has a well-developed western-style business infrastructure available at one of the lowest costs in Central and Eastern Europe. There are well-established transportation, communication, banking, insurance, accounting, and legal systems in Hungary, especially in Budapest.

• Availability of quality logistics support services,

• Excellent outsourcing opportunities,

• Fully convertible currency (Hungarian forint-HUF). Hungary plans to introduce Euro as national currency until 2010.

• Low corporate tax rate - 18 %,

• Tax benefits, government allowances, and incentives granted by the state to investors,

• Living standard and quality of life on Western-European level but at lower costs. Unusually broad range of entertainment possibilities, many sporting facilities, world-famous thermal baths can be found.