2.500
%
Neutral
32
mm boe
25
%
Hungary struggles to attract investment due to the limited size of it oil & gas sector relative to its international competitors. This is offset to some extent by EU membership remains an unknown factor, especially when considering the "top down" approach to legislation.
January 3, 2024
Europe - Central
mm bbl
bcf
Central Europe, northwest of Romania.
Concession
Simple Concession-based fiscal regime. Royalty rates vary with production rates. In addition to corporate income tax, there is an additional profits tax (the Solidarity tax) plus some local business taxes and indirect taxes. There is no state participation.
The corporate tax rate is currently 9%, though the government dropped its veto to the EU directive to implement the OECD Global Minimum Tax agreement. Foreign investors generally report a productive dialogue with the government. Business remains concerned the Hungarian government unfairly promotes domestic ownership at the expense of foreign investors in the banking, media, energy, retail, utilities, telecommunications, and insurance sectors. Regarding the public procurement process, European Commission audits found an unusually high%age of contracts were awarded after a single bidder (often government affiliated entrepreneurs) participated. In 2022, Hungary placed 77 worldwide and ranked last out of the 27 EU member states on Transparency International’s (TI) 2022 Corruption Perceptions Index, a deterioration.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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