Ease of doing business
Hungary's economy has been extensively liberalised through privatisation, foreign direct investment and the introduction of comprehensive commercial laws. Hungary’s business culture is similar to the UK’s and English is widely spoken, so UK companies find it easy to work with local partners.
Strategic focus
Hungary is the perfect place for British companies seeking to expand their operations in central and eastern Europe. Many companies have selected the country to be their regional centre or global back office.
Educated workforce
Hungary’s well-educated and professionally trained workforce is one of the country’s main economic advantages for UK exporters who need to staff locally.
Top five UK goods exported to Hungary, in the four quarters to the end of Q1 2023
| Goods | Value (£million) |
|---|---|
| Mechanical power generators (intermediate) | |
| Cars | |
| Other chemicals | |
| Organic chemicals | |
| Telecoms & sound equipment (capital) |
Source:
ONS Trade in goods: country-by-commodity exports
Last updated: July 2023
Download the latest trade and investment factsheet for Hungary.
Top five UK services exported to Hungary, in the four quarters to the end of Q1 2023
| Service | Value (£million) |
|---|---|
| Intellectual property [Note 5] | |
| Travel | |
| Telecommunications, computer and information services | |
| Other Business Services | |
| Transportation |
Source:
ONS UK trade in services: service type by partner country, non-seasonally adjusted
Last updated: July 2023
Download the latest trade and investment factsheet for Hungary.
Total import value (into the UK from Hungary) and export value (from the UK into Hungary) over time
| Year | Imports (£billion) | Exports (£billion) | Total trade (£billion) |
|---|---|---|---|
| 2016 | 3.6 | 2.0 | 5.6 |
| 2017 | 3.8 | 2.2 | 6.1 |
| 2018 | 3.8 | 2.2 | 6.1 |
| 2019 | 4.1 | 2.3 | 6.4 |
| 2020 | 3.3 | 2.5 | 5.7 |
| 2021 | 3.0 | 2.4 | 5.4 |
| 2022 | 4.0 | 2.7 | 6.7 |
Source:
ONS UK total trade: all countries, seasonally adjusted
Last updated: July 2023
Total trade is the sum of all exports and imports over the same time period.
Download the latest trade and investment factsheet for Hungary.
Hungary: at a glance
Economic growth
7.1%
Actual figure (IMF, 2021)
The UK is 7.6% (IMF, 2021, actual figure)
GDP per capita
$18,688
Actual figure (IMF, 2021)
The UK is $46,422 (IMF, 2021, projected figure)
Currency
Forint
Business language
Hungarian, English
You may need a translator
Time zone
GMT +1
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Opportunities for exporters
There are a opportunities for UK companies across a broad range of industries. Our trade advisers in Hungary have identified particular opportunities for UK businesses in the following sectors.
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Hungary’s energy sector has much to offer UK companies with experience in nuclear, renewables and clean coal technology. There are opportunities in the production of electrical machinery and equipment, which was Hungary’s most imported and exported good in 2017 (ONS, 2018).
Renewables
Hungary aims to significantly increase its renewable energy output by 2020. This offers supply-chain opportunities for UK companies with expertise in geothermal, wind, biomass and solar energy. There is also demand for renewable electricity generation, energy storage, and smart grid and metering solutions for Hungary’s ‘smart cities’ project.
Clean coal
The Mátra power plant, the second largest producer of electricity in Hungary, needs to be developed and refurbished to meet environmental requirements. This offers opportunities for UK companies with the relevant expertise.
-
Hungary’s life sciences sector has much to offer UK businesses. There are opportunities in joint research and development (R&D) projects and for services throughout the supply chain.
Demand for British products
British healthcare and medical equipment products have a good reputation in Hungary. The country imports the majority of the products needed for the everyday running of its healthcare service. There are opportunities for UK companies offering high-quality and competitively priced products.
Well-developed market
The Hungarian life sciences sector has one of the most developed pharmaceutical and biotechnology sectors in central and eastern Europe. It is home to fast-developing research institutions.
Growing number of SMEs
The number of small and medium size bio-technology companies in Hungary is growing. There are significant opportunities for UK biotechnology companies to collaborate with Hungarian counterparts.
Check for trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.
Check duties and customs
Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.
Doing business in Hungary
Preparing to export
Hungary’s legal system is largely in line with EU requirements. If you are considering a large-scale transaction you should consult one of the international law firms based in Hungary.
VAT
If you’re registered for VAT, it may be possible to zero-rate the goods you export to Hungary, provided certain conditions are met.
All enterprises supplying goods or services in Hungary must register for and charge VAT. Small businesses can choose to be VAT exempt under certain conditions.
The standard VAT rate is 27%, but rates of 18%, 5% or 0% apply to certain goods and services.
Corporate tax
You’ll find information on Hungarian tax for enterprises on the National Tax and Customs Administration of Hungary (NTCA) website.
Standards and technical regulations
Products and packaging should meet EU standards.
The Hungarian Trade Licensing Office (website in Hungarian, English translation available) is the main regulator. They set the standards that apply to foreign products coming into the country. There are special rules around registering and certifying certain products.
Labelling
Labelling should be in Hungarian. You should check with the relevant registration or certification authority about whether labelling needs to comply with Hungarian legislation on advertising and health and safety.
Services regulations
Information on rules for selling services and business travel to Hungary is available on gov.uk
Trade barriers
Check for any reported barriers to trading with Hungary.
Report any trade barriers that are affecting your business so we can help fix them.
Operating in Hungary
Hungary's increasingly westernised business culture has improved ease of doing business. However, UK companies could encounter difficulties like legal barriers to public procurement.
Intellectual property
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
Business behaviour
The use of English is rapidly increasing. However, you may sometimes encounter language barriers, especially when working with smaller companies and outside Budapest.
Business cards are used extensively. Hungarians often place their surnames first on business cards, printed in Hungarian. You should consider getting business cards printed in Hungarian, with surname first.
Next steps
Get ready to do business abroad
Step-by-step lessons to accelerate your exporting ability.
Read more
Contact an international trade advisor
Get in touch with your local trade office for advice from an international trade adviser.
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