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Based on Government Decree 81/2025 (IV. 17.) amending Government Decree 210/2014 (VIII. 27.) on VIP cash grants (hereinafter: "Decree"), significant amendments have come into effect as of 18 April 2025.

The rules related to regional investment incentives have been modified in several aspects. These are primarily aimed at encouraging innovative investments focusing on high value-added research and development (R&D) activities, as well as cooperation with domestic suppliers. Additionally, the system of commitments has been amended significantly.

When evaluating the potential grants, the government will consider both the added value and environmental impact of the investment. For R&D projects, the government will pay special attention to the number of patents filed by the investor or their research partners during the projects.  

According to the amendments, the specific minimum investment amounts apply as follows by region:

• EUR 10 million: Győr, Székesfehérvár, Tatabánya, Szekszárd, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged, and Eger
• EUR 5 million: Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár, Szolnok, Szekszárd; and in towns qualifying as district centers in the counties of Hajdú-Bihar, Jász-Nagykun-Szolnok, Pest, Fejér, Komárom-Esztergom, Veszprém, Győr-Moson-Sopron, and Vas
• EUR 3 million: in towns not qualifying as district centers in the counties of Hajdú-Bihar, Jász-Nagykun-Szolnok, Pest, Fejér, Komárom-Esztergom, Veszprém, Győr-Moson-Sopron, and Vas
• EUR 2 million: in towns not qualifying as county seats in the counties of Borsod-Abaúj-Zemplén, Heves, Nógrád, Szabolcs-Szatmár-Bereg, Bács-Kiskun, Békés, Csongrád-Csanád, Baranya, Somogy, Tolna, and Zala

New requirements have been introduced concerning labor costs and/or net sales revenue increases, namely that apart from the already applicable 30 percent (or percentage point) increase, investors should commit to achieving:

• at least EUR 2 million in additional labor costs, and
• at least EUR 15 million additional net sales revenue during the monitoring period

Additionally, companies must choose to fulfill one of the following commitments as a result of the initial investment:

• to increase the per capita labor cost during the monitoring period by at least 30 percent (in the case of an average annual headcount exceeding 50)
• to increase the per capita net sales revenue by at least 30 percent (in case of an average annual headcount exceeding 50) during the monitoring period
• to create at least 25 new jobs

In addition to the above, for initial regional investments, at least two of the following optional commitments must be met if the grant procedure began after the amendments took effect:

• the creation of at least 10 R&D jobs during the monitoring period
• an increase of at least 30 percent in R&D costs during the monitoring period
• achieving a renewable energy ratio of at least 30 percent during the monitoring period
• an increase in the number of employees under vocational training contracts by at least 10
• an increase of 30 percent in the ratio of domestic suppliers within a 100 km radius of the investment location during the monitoring period
• a collaboration in supplier development activities organized by HIPA during the monitoring period

An important change to regional investment incentives is that the criteria for maintaining jobs related to regional investment incentives has been abolished, except in cases when the investor has committed to creating new jobs.

Moreover, the conditions related to supplemental energy investments are now clearer and stricter.

A new type of regional investment incentive has been introduced for medium and large enterprises in the form of specific R&D support. This incentive may be applied for regardless of the volume of eligible costs, provided that the following conditions are met:

• The investment aims to create a new facility or the diversifying of services at an existing facility.
• The investment is aimed at developing R&D activities.
• The annual average headcount of the investor and its direct shareholder reaches 50 in the financial year preceding the starting date of the investment.
• At least 10 new R&D jobs are created, with at least 50 percent of these requiring higher education.
• A cooperation agreement is concluded with a Hungarian higher education institution.

As part of the incentive, new employee labor costs for the first 24 months of their employment qualify as eligible costs, provided that these new jobs are created within three years of the investment date.

No additional collateral is required beyond the mandatory 100 percent guarantee.

With the amendment of the Decree, the scope of enterprises eligible for training subsidies is narrowed. Training subsidy may only be requested by medium and large enterprises where the combined average annual headcount of the investor and its direct owner reaches 100 in the financial year preceding the submission of the subsidy application. However, the obligation for operational development (acquisition of tangible or intangible assets) is abolished, which is a significant simplification compared to previous conditions.

Future eligibility for training subsidies will depend on the following criteria:

• The enterprise should maintain the number of jobs corresponding to the number of persons participating in the training, or, if higher, the number of retained jobs for at least 18 months.
• A minimum of 25 persons must participate in the training.
• The eligible costs of the training support should reach EUR 250,000.

Furthermore, the training project duration will increase from 24 months to 36 months.

The most notable change regarding profit-based subsidy is that any large enterprise is eligible to apply for it. Previous rules meant that only large enterprises subject to global minimum tax were eligible.

The subsidy may still be requested for initial investments implemented in Hungary �� except for Budapest �� if the investor receives regional investment aid (or individual aid based on the decision of the European Commission). A major change, however, is that the requirement for a 30 percent (or percentage point) increase in labor costs and/or net sales revenue for profit-based subsidies has been eliminated in relation to profit-based subsidy. The requirement of the EUR 2 million additional labor cost and the EUR 15 million additional net sales revenue mentioned in the case of regional investments �� along with the fulfilment of the optional commitments �� are applicable to the profit-based subsidy too.

Moreover, for investments exceeding EUR 55 million, the following commitments must also be fulfilled:

• Startup companies should commit to the creation of at least 50 new jobs, which may include leased employees.
• For non-startup companies, the average annual headcount and the net sales revenue of the financial year preceding the start date of the investment should be maintained on average during the monitoring period.

• In connection with the existing R&D subsidy requiring eligible costs of at least EUR 1 million, the threshold for the annual average headcount number of eligible large and medium-sized enterprises is decreased from the current 100 to 50.
• For the purposes of the existing R&D subsidy requiring eligible costs of at least EUR 1 million, the average annual headcount requirement for qualifying large and medium-sized enterprises has been reduced from the current 100 to 50.
• The possibility of granting the profit repatriation subsidy is extended by one year, i.e. the subsidy may be provided for investments made up until 31 December 2025 at the latest. However, subsidy advance may only be granted up to 25 percent instead of the previous 30 percent.
• The renewable energy production investment subsidy is abolished.
• The definition of relocation is clarified, i.e. the relocation prohibition is extended for the whole period from two years before the submission of the subsidy application until the end of the second year following the completion of the initial investment. This amendment also applies to ongoing subsidy procedures.
• A risk assessment procedure has been introduced to the subsidy process, based on which the scope and extent of guarantees may be determined individually.
• According to the amendments, small and medium-sized enterprises may receive subsidy advances.