The Government launches a program to support the expansion of Hungarian companies abroad and their becoming regional or global multinational companies
The target of the Foreign Market Growth Supporting Program (hereinafter: FMGSP), which aims to support the foreign investments of domestic companies, is to support the investments of Hungarian enterprises in foreign coutries.
Support may be requested for investment through the creation of a new subsidiary, branch or majority-owned joint venture with economic activity in the target countries, or for the development of an existing subsidiary, branch or majority-owned joint venture of the beneficiary. The projects can only be implemented in a country with a country risk rating of 1-5 as defined exclusively by Eximbank Zrt., or in a country with a country risk rating of 6, in which a Hungarian foreign representation operates (the ratings of the countries are available at this link).
The main parameters of the FMGSP are the followings:
• the type of the support: non-refundable support
• the amount of the support: min. HUF 250 million, max. HUF 4 billion
• the intensity of the support: up to 50% (or based on the title)
• the scope of the support: small, medium and large companies
• mandatory maintenance period: n+3 years (in case of large companies n+5 years)
• maintaining period of the business: n+10 years
By signing the support agreement, the beneficiary company must undertake that the turnover of the Hungarian parent company or the income from financial operations related to the activities carried out within the project until the end of the maintenance period of the business in total (cumulatively) will reach 100% of the awarded support.
Companies can apply for an independently supportable activity (the investment itself)
• regional investment support,
• investment support for renewable energy production,
• supporting starting enterprises.
Titles of other related activities that cannot be supported independently (for example: preparation, management or communication costs):
• supporting a research and development project,
• de minimis support.
The support will be paid retrospectively on the basis of the invoices or other accounting documents submitted by the investor in accordance with the schedule specified in the support agreement. An advance may be granted up to the 50% of the amount of the support.
Applications to Hungary's neighboring countries will be evaluated by CED, and applications to all other countries will be processed by HEPA. Applications may be submitted after the 1st of September, in the manner and form that can be found on the HEPA and CED websites that will be published subsequently.