VIP Cash Grant in Hungary – Investment Incentives by Individual Government Decision

What is the VIP Cash Grant and who can apply?

The VIP Cash Grant is a non-refundable state aid available for qualifying investment projects implemented in Hungary and awarded by individual decision of the Hungarian Government. Depending on the applicable aid scheme and the type of project, support may be available for manufacturing and industrial investments, capacity expansions, business service centres, research and development projects and certain strategic clean technology investments.

Eligibility and the maximum amount of aid depend on several factors, including the location and size of the investment, the eligible costs, the size of the investor, the applicable state aid rules and the commitments undertaken by the beneficiary.

MAPI supports investors from the initial assessment of VIP Cash Grant eligibility and project structuring through the preparation of the application and the entire incentive process. In parallel, we also assess other available investment incentives and tax benefits that may complement the cash grant.

Over the past years, MAPI has participated in more than 50 government-supported investment projects, assisting our partners in the successful implementation of their developments.

How does the VIP Cash Grant process work?

Unlike a conventional call for proposals with a fixed application window, the VIP Cash Grant operates as an investment incentive scheme based on individual government decision. The process typically begins with an assessment of the planned investment and the investor, followed by preliminary consultations regarding the potential eligibility and structure of the project.

During the process, the eligible investment volume, eligible costs, potential aid amount and intensity, as well as the commitments to be undertaken by the investor are determined in accordance with the applicable Hungarian and EU state aid rules. The timing of the start of the investment is particularly important, therefore the potential eligibility of a project should be assessed before irreversible investment commitments are made.

What types of investments may qualify?

Manufacturing and industrial investments

The VIP Cash Grant may support the establishment of new production capacity, the expansion of existing facilities and technology-driven industrial investments. Eligibility depends, among other factors, on the location and size of the investment and the characteristics of the investor.

Business Service Centres (BSC / SSC)

The establishment or expansion of business service centres in Hungary may also qualify for support. Relevant factors may include the activities performed, the number and quality of jobs created and the overall economic impact of the project.

Research & Development projects and R&D centres

VIP Cash Grant schemes are also available for qualifying research and development projects and, subject to specific conditions, for the establishment of R&D centres. The incentive framework was further expanded in 2025 to encourage higher value-added research activities and cooperation with Hungarian universities and healthcare institutions.

Clean technology investments (CISAF)

Under the CISAF incentive scheme, certain investments related to net-zero technologies, key components and the production or recovery of critical raw materials may qualify for non-refundable investment aid in Hungary.

How much VIP Cash Grant can be obtained?

There is no single aid amount or aid intensity applicable to every VIP Cash Grant project. The potential support depends on the applicable aid scheme, the location of the investment, company size, eligible expenditure, project characteristics and the relevant maximum aid limits under Hungarian and EU state aid rules.

Is the VIP Cash Grant non-refundable?

Yes. The VIP Cash Grant is a non-refundable cash incentive. However, the beneficiary must comply with the commitments, implementation requirements, monitoring obligations and other conditions set out in the incentive agreement.

Minimum investment volume by location

For asset-based regional investment aid, the minimum eligible investment volume depends on the location of the project. The thresholds applicable from 18 April 2025 are as follows:

EUR 2 million

In municipalities other than county seats in Borsod-Abaúj-Zemplén, Heves, Nógrád, Szabolcs-Szatmár-Bereg, Bács-Kiskun, Békés, Csongrád-Csanád, Baranya, Somogy, Tolna and Zala counties.

EUR 3 million

In municipalities not qualifying as district seats in Hajdú-Bihar, Jász-Nagykun-Szolnok, Pest, Fejér, Komárom-Esztergom, Veszprém, Győr-Moson-Sopron and Vas counties.

EUR 5 million

In Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár, Szolnok and Szekszárd, as well as in district-seat municipalities of Hajdú-Bihar, Jász-Nagykun-Szolnok, Pest, Fejér, Komárom-Esztergom, Veszprém, Győr-Moson-Sopron and Vas counties.

EUR 10 million

In Győr, Székesfehérvár, Tatabánya, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged and Eger.

Important: the above thresholds relate to asset-based regional investment aid. Different eligibility conditions and minimum requirements apply to other VIP Cash Grant schemes, including certain R&D, training and CISAF incentives.

What commitments may apply to a VIP Cash Grant?

The commitment framework for asset-based regional investment projects was significantly revised in 2025. For relevant projects, the updated system includes commitments to generate at least EUR 2 million in additional wage costs and EUR 15 million in additional net sales revenue during the monitoring period.

In addition, one of the following commitments may be required:

  • at least 30% increase in annual average wage costs per employee for qualifying companies,
  • at least 30% increase in annual average net sales revenue per employee for qualifying companies, or
  • creation of at least 25 new jobs.

For qualifying initial regional investments, at least two additional commitments may also be required, such as:

  • creation of at least 10 new R&D jobs,
  • at least 30% increase in R&D expenditure,
  • at least 30% use of self-generated renewable energy,
  • employment of at least 10 additional participants in dual or vocational education,
  • increasing the share of procurement from suppliers located within a 100 km radius, or
  • participation in supplier development cooperation with HIPA.

The exact commitment structure must always be assessed on the basis of the applicable aid scheme and the individual characteristics of the investment project.

Key changes to the VIP Cash Grant system in 2025–2026

Lower investment thresholds

Since April 2025, asset-based investment aid may be available from an investment volume as low as EUR 2 million in certain locations in Hungary.

Expanded R&D incentives

The R&D incentive framework has been broadened. Since October 2025, contractual research performed in cooperation with a university or healthcare institution may, subject to the applicable conditions, account for up to 75% of the eligible project costs.

New CISAF incentive

Hungary introduced a new CISAF-based incentive scheme for strategic clean technology investments. Under the current framework, qualifying projects may receive non-refundable aid throughout Hungary until 31 December 2030.

VIP Cash Grant and other investment incentives in Hungary

The financing structure of a major investment should not necessarily be based on a single incentive. Depending on the characteristics of the project, investors may also consider development tax incentives, R&D-related incentives and tax benefits, subsidised financing and other investment support schemes alongside the VIP Cash Grant.

Whenever several forms of state aid are combined, the applicable cumulation rules and maximum aid intensities must be assessed carefully.

Frequently asked questions about the VIP Cash Grant

What is the VIP Cash Grant in Hungary?

The VIP Cash Grant is a non-refundable state aid scheme for qualifying investment and development projects in Hungary. The grant is awarded on the basis of an individual government decision and is subject to Hungarian and EU state aid rules.

Who can apply for a VIP Cash Grant?

Eligibility depends on the relevant incentive scheme and the type of investment. Requirements may differ according to company size, investment location, project volume, activity and eligible expenditure.

What is the minimum investment required?

For asset-based regional investment aid, the minimum eligible investment volume may currently be EUR 2 million, EUR 3 million, EUR 5 million or EUR 10 million depending on the location of the investment. Different thresholds apply to other incentive schemes.

What is the maximum aid intensity?

There is no single aid intensity applicable to all projects. The maximum level of support depends on the applicable state aid scheme, investment location, company size, eligible costs and the relevant Hungarian and EU state aid limits.

Can investments in Budapest receive VIP Cash Grant support?

Certain VIP Cash Grant schemes are available for projects implemented in Budapest, while regional investment aid schemes may contain territorial restrictions. Eligibility must therefore be assessed according to the specific project and aid category.

When can the investment project be started?

The timing of the start of the investment is a critical state aid issue. Potential eligibility should therefore be assessed before the investor makes irreversible commitments relating to the project.

Can R&D projects receive VIP Cash Grant support?

Yes. The VIP Cash Grant system includes dedicated incentive schemes for qualifying research and development projects and, subject to specific conditions, for the establishment of R&D centres.

Can the VIP Cash Grant be combined with tax incentives?

In certain cases, yes. However, the applicable state aid cumulation rules and maximum aid limits must be assessed before combining different incentives.

Planning an investment in Hungary?

The potential incentive structure of an investment should ideally be assessed at an early stage of project preparation. MAPI provides professional support in identifying available incentives, structuring investment projects and managing the VIP Cash Grant process.

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Sources: Government Decree 210/2014 (VIII. 27.);
Last professional update:
EKD beruházás 2023

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