Industry News

This is what you should know about Hungary

Posted on Mar 24, 2025
In Industry News, Hungary

Why Hungary Stands Out: A Prime Destination for Investment and Residency

A stable market, a low-tax economy, and a top destination offering a high quality of life—Hungary has even more to offer, making it a strategic choice for those seeking a better future. But is that all? What else should you know about Hungary?

Economic Resilience and Growth Outlook

Hungary’s economy is on a strong rebound, with GDP growth projected to rise from 0.6% in 2024 to 3.1% by 2026, reflecting steady progress and resilience. Fiscal stability is also improving, with the budget deficit narrowing from 6.7% in 2023 to a projected 4.1% by 2026, reinforcing a path toward sustainability.

Inflation has dropped significantly from 17.6% in 2023 to 7.9% in early 2024, and is expected to decline further, reaching a 3.8% annual average by the end of 2024, and 5.7% in January 2025. Meanwhile, Hungary maintains a relatively low unemployment rate, supporting long-term economic stability.

While Germany’s GDP growth was projected at just 1.1% in 2025, the German government has lowered its forecast for economic growth in Germany to 0.3%. Meanwhile, Hungary’s economy is expected to outpace it. Additionally, Hungary’s deficit reduction outpaces countries like France, which is projected to maintain a deficit around 1.4% of GDP through 2026.

World-Class Education

With over 650 years of academic excellence, Hungary is home to 64 accredited institutions and four international universities, offering 700+ programs in English, German, French, and other languages. As part of the European Bologna Process, Hungarian degrees are internationally recognized, opening doors to career opportunities worldwide.

The European Credit Transfer System (ECTS) ensures seamless academic mobility, while scholarships like Stipendium Hungaricum and Erasmus+ make Hungary an affordable and attractive choice for international students.

Hungary offers high-quality education at lower costs, with tuition fees ranging from €1,200 to €5,000 per year. Medical and dental programs cost €12,000 and €16,000, while engineering, business, and master’s programs range from €3,500 to €8,000, and bachelor’s degrees can start as low as €1,500 per semester (€3,000 per year) at some universities. By comparison, tuition in Western Europe (UK, France, Germany) often exceeds €10,000, making Hungary a cost-effective alternative.

Competitive Tax System & Affordable Living

Hungary combines a highly attractive tax environment with affordable living costs, making it ideal for individuals and businesses. With a flat 15% income tax and the lowest corporate tax rate in the EU at 9%, Hungary offers financial efficiency and stability. Essential goods and services also benefit from reduced VAT rates of 5% and 18%.

Living costs are significantly lower than in major Western European cities, with Budapest offering a comfortable lifestyle for around €991 per month for individuals and €2,669 for families. Smaller towns provide even greater affordability, making Hungary ideal for expats, families, and remote workers.

In contrast, the average monthly cost of living for a single person in Paris or London is over €2,500, making Hungary nearly three times more affordable. Additionally, Germany, France, and Spain have corporate tax rates between 25% and 30%, far higher than Hungary’s 9%.

Healthcare System: Affordable, Accessible, and Efficient

Hungary offers a well-structured and accessible healthcare system, providing universal coverage through the National Health Insurance Fund (NEAK), funded by taxes and contributions. Most healthcare services are free at the point of use, with minimal co-payments for select services such as pharmaceuticals and dental care, ensuring affordable medical care.

The country ranks 15th in Fiscal Sustainability in the 2024 World Index of Healthcare Innovation, thanks to its cost-effective healthcare spending at 7.3% of GDP. While Western European countries like France and Germany allocate over 11% of GDP to healthcare, Hungary maintains accessibility at a lower cost while ensuring quality services.

Hungary Has It All

So, the numbers speak for themselves. If you’re looking to secure a better future for yourself and your family, Hungary is the ideal choice. With an investment of just EUR 250,000 in approved real estate funds, you can enjoy several benefits, including a 10-year renewable Hungarian residence permit for qualifying investors and their families.

Beneficiaries gain the right to live, work, and study in Hungary, enjoy visa-free travel within Europe’s Schengen Area, and are not required to maintain a minimum stay in Hungary.

As a licensed partner in Hungary since 2013—and the exclusive partner for the Hungary Guest Investor Program outside Greater China—Arton Capital has helped thousands of investors make Hungary their new home. When will you join them?

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