The Hungarian economy
Hungary has a medium-sized economy that has adhered to the European single market in 2004 when the country has become part of the European Union. Hungary is a signatory member of the Organization for Economic Co-operation and Development (OECD) since 1995 and has become member of the World Trade Organization (WTO) in 1996. All these changes have led to the market liberalization in Hungary.
Hungary is considered a secure destination for investment in industries like automotive due to high export rate of car parts, so if you are looking to set up a business you can contact our Hungarian lawyers.
Exports in Hungary
According to the Hungarian Central Statistical Office companies in Hungary mainly export car parts and transport equipment that rise to almost 5 percent of the country’s total exports. The following places are occupied by pharmaceutical products, chemical products, broadcasting equipment, computer parts, metal (iron and steel), agricultural products and textiles. On a particular scale the top 5 Hungarian export products are: cars that occupy 4.7%, broadcasting equipment that occupies 4.6%, video displays with 4.2 %, vehicle spare parts with 4.1% and ignition engines with 3.6% of total exports. The countries Hungary exports to are: Germany with 25%, Romania with 6.5%, Austria with 5.3%, Italy with 4.8% and France with 4.7%. Outside the EU, Hungary’s exports go to Asian countries that occupy 7.21% of exports and the U.S. with almost 3%.
Imports in Hungary
When it comes to import, machinery and petroleum occupy a great part of Hungary’s import habits. Crude petroleum and petroleum gas are imported in proportion of 8% in Hungary. When it comes to machineries Hungary’s imports are dominated by vehicle parts, pharmaceuticals, telephones, integrated circuits and engine spare parts. The Hungarian top 5 import looks like this: crude petroleum with 5%, petroleum gas with almost 4%, medicines with almost 3.5%, vehicle spare parts and telephones with 3%. The countries Hungary imports most from are Germany with 23%, Russia with almost 9.5%, China and Austria with 6%, Slovakia with almost 5%, Poland, Italy and the Netherlands with 4%.
Hungary, as part of the EU and the OECD, is trading with member states up to 80%. The country Hungary trades most with is Germany.
Import taxes in Hungary
Taxes in Hungary are set on imported goods and services that come from outside the EU. These taxes are calculated as a sum of the goods’ value, transportation costs and insurance. The duty rates that apply to imported goods and services in Hungary are set between 0% and 17%. There are additional charges, also known as anti-dumping taxes.
The Hungarian VAT rate for imports is set at 27%, but a reduced rate of 5% applies to certain goods such as printed materials. VAT is calculated considering the value of the merchandise, its freight costs and insurance.
Our law firm in Hungary can provide you detailed information about import and export legislation.