Following a major overhaul in the spring, further amendments to Hungary’s regulatory framework for individual government decision (EKD) grants came into effect on 18 October 2025. The updated legislation aims to offer more attractive incentives for companies operating in the fields of research & development (R&D) and clean technologies.
Legal background
The Hungarian Government Decree 314/2025. (X.17.), published in the Official Gazette on 17 October and effective from the next day, amends Decree 210/2014. (VIII.27.) on the use of investment promotion funds.
According to the new provisions, the changes introduced to the grants provided by HIPA – the Hungarian Investment Promotion Agency – are designed to:
- encourage a greater number of clinical research projects to be conducted in Hungary, and
- align national regulations with the European Commission’s guidelines on state aid, as detailed in communication C/2025/3602.
Major changes in supporting R&D collaborations
One of the most significant updates to the EKD regulatory framework involves the treatment of costs related to contract research carried out jointly by companies and universities or healthcare institutions.
Previously, only up to 50% of such collaborative research costs could be claimed as eligible. As of 18 October, this threshold has increased to 75%.
This change is especially aimed at fostering the local implementation of clinical research, deepening collaboration between pharmaceutical and medical technology companies and Hungarian universities or clinics.
The broader objective is to strengthen Hungary’s position among international R&D hubs and support the expansion of its knowledge-based economy.
Introduction of the Clean Industrial Deal State Aid Framework (CISAF)
The domestic implementation of the Clean Industrial Deal State Aid Framework (CISAF) – approved by the European Commission over the summer – marks a key step toward more flexible and effective support for clean industrial investments.
The CISAF program specifically targets industries critical to achieving net-zero emissions, with a focus on the following areas:
- Development of clean technologies, such as solar panel systems, thermal energy storage solutions, and geothermal power plant manufacturing
- Production of key components for these technologies
- Extraction or recovery of critical raw materials essential to the advancement of clean industry.
This new support scheme is a cornerstone of Hungary’s ambition to play an active role in Europe’s green transition and sustainable industrial development.
Renewable energy and storage: updated grant conditions
Investments in renewable energy continue to be eligible for support under the HIPA system. However, the latest changes in the EKD regulatory framework clarify the eligibility criteria.
Support is now only available if the project involves not only the expansion of production capacity but also the installation of an energy storage system.
This approach aims to foster the development of stable and flexible energy systems, in line with Hungary’s goals for decarbonisation and energy independence.
The latest amendment to the EKD regulatory framework in Hungary opens up new opportunities for companies active in R&D and clean technologies. The Strategic Advisory, State Aid and Incentives business line of WTS Klient Hungary is ready to advise you on investment plans with expert guidance. Don’t hesitate to contact us!
This article provides general information and does not constitute advice.
