Apart from the summary of the history and geography in Hungary, this chapter deals with the business climate of today that is receptive to foreign investors and to their ideas, concepts and management methods. As a result, Hungary has led the region in attracting foreign direct investment with its open policy toward investment from abroad and its relatively business-friendly environment. Investment Incentives Hungarian law offers a wide variety of tax and nontax incentives. The tax incentives are largely restricted to manufacturing entities and are dependent on the size and location of the project.
Nontax incentives take the form of grants, interest-free loans or interest subsidies.
The Hungarian authorities are keen to encourage foreign investment and have almost entirely abolished the limitations on it. Reporting and registration requirements apart, it is necessary to approach the authorities for a permit in only a few specific cases. The banking system in Hungary developed to sophisticated Western European standards. These baking regulations define the banking system and the types of institutions participating therein and specify detailed rules for their operating parameters and supervision. As a member of the WTO, Hungary has adopted the Brussels tariff nomenclature.