Hungary

When Hungary joined the EU in May 2004, it drew attention to its strong economic growth and political stability. EU entry means customs-free market access to 600 million potential consumers while benefiting from a low-cost workforce and a sound operating environment in which to manufacture goods.

A growing number of Fortune 500 companies have achieved impressive returns on investment in Hungary, benefiting from and fuelling six consecutive years of sustained gross domestic product growth, averaging 4.5% annually. There is a stable and transparent political environment, which protects both human rights and intellectual property rights. Investors enjoy the lowest corporate tax rate in Continental Europe plus significant tax allowances. Moreover, the country has negotiated a number of free trade agreements beyond EU borders.

Labour competitiveness is among the best in Europe, having recorded a 13% average annual rise in overall productivity. In addition, the workforce is multilingual, educated, skilled and motivated.

The government continues to invest in and foster infrastructure improvements, including transportation upgrades, technology, financial and supportive business services and education. The numerous benefits of EU membership for foreign investors include simplified customs administration, easy cross-border movement, and transparent legal and tax systems.