According to the amendments to Governmental Decree 2010/2014 (“Decree”) effective as of 4 August 2023, several favourable changes as well as new incentive opportunities have been implemented.

Investment Value Minimum

The minimum investment value for asset-based investments has been amended, significantly reducing this threshold in numerous municipalities:

  1. A minimum of EUR 5 million in Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár, Szolnok or any district seats
  2. A minimum of EUR 10 million in Győr, Székesfehérvár, Tatabánya, Szekszárd, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged and Eger
  3. A minimum of EUR 3 million in all other countryside locations

Note that if any given district seat also qualifies as a county seat, the higher threshold applies in order to achieve eligibility.  


Renewable Energy Investments in Budapest

Incentive opportunities have been extended to “supplementary investments” dedicated to renewable energy production for self-usage in Budapest. To qualify for the subsidy, a “main investment” of at least the same investment value that was used to meet the criteria set by the Decree and linked to at least one of the manufacturing activities defined in the Decree should be implemented. The minimum total investment value is EUR 10 million. The subsidy intensity relating to the supplementary investment is capped at 30%, which can be increased by 20% for small enterprises and 10% for medium-sized enterprises. The total subsidy value shall not exceed EUR 15 million.


Net Zero Investments

A new incentive opportunity has been introduced for investments in strategic sectors in order to foster the transition towards a net-zero economy. In line with the framework of the European Commission, a subsidy may be granted in connection with the production of batteries, solar panels, wind turbines, heat-pumps, electrolysers and equipment for carbon capture usage and storage (CCUS) as well as related equipment and critical raw materials. The subsidy is available throughout Hungary.

The potential incentive is capped at:

  1. 15% of the eligible costs or EUR 150 million on the current value in the case of investments in Budapest
  2. 35% of the eligible costs or EUR 350 million on current value in the case of investments outside Budapest

In certain situations, limitations may apply to the mentioned thresholds. The amount may be increased by 20% for small enterprises and 10% for medium-sized enterprises. Nevertheless, in certain situations, limitations may apply to the mentioned thresholds.”

The incentive is only available for a limited period and expires on 31 December 2025.

We would like to add that, in respect to the above investments, a corporate income tax credit opportunity has recently been introduced.



As a favourable change, subsidy collaterals may gradually be reduced after the minimum monitoring period of five years for large enterprises and three years for medium-sized enterprises has lapsed, provided that contractual commitments have been fulfilled so far.


Should you have questions regarding the above, please contact Zachár Gábor, Tax Partner, (tel. +36 1 887 6690, gabor.zachar@kpmg.hu) or contact your usual tax advisor in KPMG’s Tax Department.

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