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Hungary's FM: Hungary has lowest corporation tax in EU which is attracting American companies

The minister highlighted how Hungary has the lowest level of corporation tax in the European Union, in addition to which American companies also regard the government’s investor-friendly attitude and investment promotion program as major arguments in favor of Hungary

Hungary's foreign minister has said that American companies regard Hungary as one of the most attractive investment environments in Europe.

Péter Szijjártó, minister of Foreign Affairs and Trade, made the remarks during the 72nd Session of the United Nations General Assembly in New York.

The minister highlighted how Hungary has the lowest level of corporation tax in the European Union, in addition to which American companies also regard the government’s investor-friendly attitude and investment promotion program as major arguments in favor of Hungary.

“The Hungarian economy is now entering a new dimension in view of the fact that the economy has to all intents and purposes achieved full employment, meaning greater emphasis can now be given to sectors and investment projects that represent higher added value and are fundamentally based on research & development," the minister said. “This Hungarian economic policy goal is in line with the investment intentions of American companies," he added.

The number of American enterprises operating in Hungary now exceeds 1,700, and the number of people they employ is over 100,00. This means that the United States is the second largest investor in Hungary after Germany, and will continue to grow over the coming years.

“American enterprises are increasingly regarding Hungary as a site for research & development and services, in addition to simply a site for production. This means that in the upcoming period many American companies that are already present in Hungary with production capacities will also be establishing service and development function in the country," the minister said..

“Additionally, several American companies will be establishing service and development centers in Hungary within the framework of greenfield investment projects”, he added.

“In the upcoming period American companies will be significantly contributing to enabling the Hungarian economy to successfully move forward into a new phase based on the linking of production and digitalisation and on research & development instead of so-called simple production, in line with global economic processes," the minister said.

The minister also held talks with the directors of IBM, General Electric and BorgWarner, representatives of the US-Hungary Business Council (USBC) and the Business Council for International Understanding (BCIU) during his visit.