Launching A Startup In Hungary: Essential Guide

Published on October 3, 2025 and written by Cyril Jarnias

Hungary is increasingly establishing itself as an attractive destination for entrepreneurs looking to launch their startup in Central Europe. With its dynamic ecosystem, competitive costs, and strategic positioning, the country offers numerous advantages for developing a young innovative company. Discover in this comprehensive article all the aspects to consider for successfully creating your startup in Hungary.

Hungary, the New Startup Paradise in Europe?

In recent years, Hungary has significantly enhanced its appeal for startups and investors. Several factors explain the growth of the Hungarian entrepreneurial ecosystem:

A Favorable Business Environment

Hungary offers a particularly advantageous regulatory and tax framework for businesses:

– Corporate tax is set at only 9%, the lowest rate in the European Union – Numerous tax incentives are available, especially for R&D – Administrative procedures have been simplified in recent years

Competitive Operating Costs

Compared to Western Europe, Hungary allows for significantly reduced costs:

– Office rents are 2 to 3 times cheaper than in Paris or London – Average salaries are 30 to 50% lower than in Western Europe – The cost of living remains moderate, especially in Budapest

A Pool of Qualified Talent

Hungary has a highly skilled workforce, particularly in technical fields:

– The country trains many engineers and developers each year – English proficiency is high, facilitating international exchanges – Entrepreneurial culture is rapidly developing among young graduates

A Thriving Startup Ecosystem

The Hungarian entrepreneurial ecosystem has become significantly more structured in recent years:

– Numerous incubators and accelerators have emerged, such as Design Terminal or Hiventures – Tech and startup events are multiplying, like Startup Safari Budapest – Investment funds and business angels are increasingly active

A Strategic Geographic Position

Located in the heart of Central Europe, Hungary offers privileged access to several markets:

– Eastern European countries represent strong growth potential – Western Europe remains easily accessible – Budapest has excellent air connections with major European capitals

Thanks to these many advantages, Hungary is establishing itself as a prime destination for launching a startup in Europe. The country is attracting more and more foreign entrepreneurs drawn by its dynamism and opportunities.

Which Legal Structure to Choose for Your Hungarian Startup?

When creating your startup in Hungary, choosing the legal structure is a crucial step. Here are the main options available to you:

Limited Liability Company (Kft)

This is the most common legal form for startups in Hungary. Its main advantages are:

– Limited liability for partners – Minimum share capital of only 3 million HUF (approximately €8,000) – Simplified management – Possibility of having a single partner

Simplified Joint Stock Company (Zrt)

This form is suitable for startups with ambitions for rapid growth:

– More flexible structure than a traditional public limited company – Minimum share capital of 5 million HUF (approximately €13,500) – Facilitates the entry of investors into the capital – Suitable for a future stock market listing

Sole Proprietorship

For solo entrepreneurs, this is the simplest solution:

– No share capital required – Reduced creation formalities – But unlimited personal liability

Branch Office

Foreign startups can opt for a branch:

– No separate legal personality – Allows testing the Hungarian market – But less tax advantageous than a subsidiary

Regardless of the chosen structure, it is recommended to seek assistance from a local lawyer for the creation process. The process is generally quick, expect 1 to 2 weeks to register your Hungarian startup.

How to Finance Your Startup in Hungary?

To finance the development of your startup in Hungary, several options are available to you:

Public Grants

The Hungarian government offers numerous support programs for startups:

– Grants for innovation and R&D – Subsidized loans – Credit guarantees – Tax incentives

The National Research, Development and Innovation Office (NKFIH) is the main point of contact for these grants.

Incubators and Accelerators

They offer valuable support and sometimes funding:

– Design Terminal: the largest Hungarian accelerator – Hiventures: acceleration program from the public bank MFB – Startup Campus: incubator specialized in deeptech

Business Angels

The network of individual investors is growing in Hungary:

– Hungarian Business Angel Network (HunBAN) – Portfolion: platform connecting startups and business angels

Venture Capital Funds

More and more VCs are interested in Hungarian startups:

– OXO Labs: fund specialized in seed-stage startups – Day One Capital: one of the most active in the Hungarian market – Euroventures: historic fund present since 1989

Crowdfunding

Local crowdfunding platforms are emerging:

– Adjukossze: main Hungarian reward-based crowdfunding platform – Tőkeportál: equity crowdfunding platform

Banks

Some banks offer loans dedicated to startups:

– OTP Bank: Start it @OTP program for young innovative companies – K&H Bank: K&H Start it offer to finance seed stage

To maximize your chances of obtaining funding, it is crucial to prepare your business plan well and integrate into the local ecosystem. Don’t hesitate to participate in startup events to develop your network in Hungary.

Conclusion: Hungary, Land of Opportunities for Ambitious Startups

With its burgeoning entrepreneurial ecosystem, competitive costs, and strategic position in the heart of Europe, Hungary is establishing itself as a prime destination for launching a startup. The country offers fertile ground for developing innovative projects, whether in tech, fintech, or cleantech.

To succeed in your establishment, focus on good preparation in advance: – Study the local market and competition in detail – Choose the most suitable legal structure, with LLC (Kft) often being the most relevant to start with – Build a solid business plan to convince investors – Integrate into the local ecosystem by participating in startup events – Get assistance from local experts (lawyer, accountant) for administrative and tax aspects

With the right assets and a well-defined strategy, your startup will have every chance to prosper in the Hungarian market before conquering Europe!