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The City of Budapest Is the New Startup Hub across the EU
The capital city of Hungary, Budapest, seems to be the new destination for European Entrepreneurs to start new business ventures.
Fremont, CA: Hungary’s capital Budapest is already home to a significant number of business ventures. Investments are pouring in from global investors, VCs, and angel investors as well. The city’s popularity saw a surge in its reputation as a potential new business hub following the Brexit.
For many entrepreneurs, the possibility of running their business at desirably competitive rates coupled with the availability of an extremely talented workforce at much lesser prices is the encouraging factor.
Besides, on the 1st of October, the Hungarian government has announced an innovative investment incentive system to attract more investments that are technologically-oriented. Also, under this scheme, job creation will cease to be a pre-condition for subsidies.
The new scheme also appears to be foreign-investments friendly. Foreign-investments would be entitled to tax-breaks besides cash subsidies up to about fifty percent of the project value in about twelve nations. The ratio may slightly vary from 15 percent to 25 percent in developed regions.
The scheme is aptly introduced as the nation has already reached its limit of new job creation with employment at its peak, say, 4.5 mn. Therefore, the government requires changes in its economic policies. Currently, there is a nation-wide effort to strengthen research and development and technological investments.
Also, about 70 percent of the new investments happening in the region are high-end and are capable of taking the country to the second-highest ranking in the European area, second only to Denmark.
The government has imposed corporation taxes as low as 9 percent, which is the lowest across the EU. Also, the startups belonging to the ‘early stage’ category are permitted by the government to cut down the corporate tax base.