The summer months have brought significant changes to Hungary’s investment promotion system. On the one hand, Instruction No. 1/2026 (VI. 30.) of the Hungarian Ministry of Economy and Energy entered into force, setting out the detailed procedure for managing subsidies based on individual government decisions (Hungarian abbreviation: EKD). On the other hand, based on the new procedure, the ministry has restarted investment promotion decision-making, which had been suspended for several months. In parallel, a change of leadership has also taken place at HIPA (the Hungarian Investment Promotion Agency) aimed at further strengthening the operational efficiency of the investment promotion system.
New detailed procedure for EKD decision-making
The primary objective of the ministerial instruction is to provide a uniform and transparent framework for the entire process of granting subsidies from the investment promotion budget appropriation. The regulation sets out in detail the responsibilities of HIPA, the ministry and investors from the submission of the subsidy request through to the closing of the grant agreement, thereby ensuring a predictable operating environment for investors.
Investment decision-making has resumed
The regulatory changes are particularly timely because, after spring 2026, the substantive assessment of investment applications submitted to HIPA essentially came to a halt. Over the past few months, the Ministry of Economy and Energy reviewed the cases in progress, and the first Investment Committee meeting was then held in July, where eight projects were already discussed. The decisions enabled HIPA to continue negotiations with investors in relation to several projects.
Based on the government’s strategic priorities, in the new investment promotion system, increasing emphasis will be placed in the future on:
- high added value,
- innovation content,
- research and development activities,
- technology transfer,
- and the involvement of Hungarian suppliers and universities
when assessing investments.
More time available for project preparation
One of the most important elements of the new procedure is the extension of the timeframes available to investors.
According to the rules:
- the conditional grant offer remains valid for 12 months, instead of the previous 6 months;
- following acceptance of the offer, 24 months are available for finalising and signing the subsidy agreement, compared with the previous 12-month time limit;
- both deadlines may be extended once by a further 12 months.
This is particularly advantageous for large-scale investments implemented by international corporate groups, where internal approval, financing or permitting processes may often take several months. The longer timeframe available may reduce the risk of a subsidy process being delayed purely for administrative reasons.
The role of R&D and innovation is strengthening
Both the new regulation and the investment policy priorities formulated by the ministry indicate that knowledge-intensive investments will receive particular attention in the future. The procedure addresses research and development projects separately at several points and assigns a key role to the R&D qualification issued by the National Research, Development and Innovation (NRDI) Office.
This is in line with the objective that subsidies should primarily support investments that
- create higher added value,
- bring advanced technology to Hungary, and
- strengthen the country’s innovation capacity.
Institutional renewal at HIPA
As part of the renewal of the investment promotion system, Buday Bence has held the position of CEO of HIPA since 28 July 2026.
The change in leadership does not in itself entail any change to the conditions of the subsidy schemes; however, it fits well into the process aimed at restarting investment promotion decision-making and ensuring more predictable and faster administration for investors.
What should investors do?
For companies considering EKD subsidies, the new investment promotion system may represent a favourable opportunity. The modified decision-making mechanisms have become operational, the procedure has been clarified, and the time available for project preparation has been extended significantly. At the same time, it remains advisable to start developing the subsidy strategy at an early stage of the investment, with particular attention to properly presenting the R&D, innovation and high added value-creating elements, which are playing an increasingly important role in subsidy decisions.
The professionals at Strategic Advisory, State Aid and Incentives business line of WTS Klient Hungary are at your disposal should you require expert assistance regarding state aid opportunities available to your company. Feel free to contact us.
This article is for general information purposes only and should not be considered as advice.
