RECORD LEVELS REACHED IN TRADE VOLUME
class = 'cf'>In 2018, trade volume between Turkey and Hungary Taking a record-breaking $ 2.5 billion. In the first 8 months of 2019, trade volume reached USD 1.8 billion. Turkey Business Forum held in Hungary in the past year by revising the two countries' leaders announced that they targeted trade volume target of 6 billion euros. Turkey's first domestic product group exported to Hungary, with motor vehicles and parts, while iron and steel and textile products; imported products include land vehicles, electrical machinery and devices and live animals. Turkey-Hungary in foreign trade, customs union agreement completely while applying industrial products originating in Turkey are exported duty-free to Hungary.
THE NUMBER OF TURKISH COMPANIES IN HUNGARY EXCEED 500
According to data from the Central Bank of direct investments made since 2002 from Turkey to Hungary it came to $ 65 million. According to the DEİK Business Council, this number exceeded $ 1.5 billion with indirect investments. The investments of Turkish companies, which show great interest in Hungary, are concentrated in logistics, telecommunications, construction, tourism, energy, and food sectors. The number of Turkish or Turkish partner companies operating in the country has already exceeded 500.
EU MEMBERSHIPS WITH LOCATION, INCENTIVES AND TAX ADVANTAGE
Budapest-based law firm Gurcan Partners, co-founder of Av. Bedrettin Gurcan, EU membership, strategic location, local incentives, tax advantages and easy to set up five issues, he said.
Reminding that Hungary became a full member of the EU in 2004, Av. "When making a decision to invest in Hungary, it is necessary to consider not only a country with a population of 9.8 million but as a gateway to the European market of approximately 510 million. is one of the Central European countries that assume the task ".
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According to the Hungarian Statistical Office data, the largest investment in the country is in real estate, motor vehicles and consulting.
9 COUNTRIES WITH THE LOWEST TAXES IN EUROPE
In Hungary, which has a competitive tax system, the corporate tax rate has become the lowest value in the EU with 9 percent since 2017. Social security premiums have been reduced to 22 percent in the same year and the personal income tax rate is 15 percent. The overall VAT rate is at 27 percent. Especially the 9 percent corporate tax advantage attracts the attention of Turkish software and foreign trade companies. Even though Montenegro, which has approximately the same tax rates, has recently been popular, it offers more opportunities for Turkish investors with the commercial, economic and social advantages of Hungary's EU membership since 2004 and its integration into the Schengen region.
DISTRIBUTION POSSIBLE IN 24 HOURS ALL OVER EUROPE
Addressing the strategic position of Hungary, which houses five European highways and three international transport corridors, Av. "The country, which is ideally located in the center of Central Europe in terms of production, service and logistics, is an attractive market for Turkish companies wishing to expand their European operations. The third in the EU in logistics, "he said.
420 MILLION DOLLAR LOAN OPPORTUNITY FOR TURKISH COMPANIES
Underlining that Hungary offers a wide range of incentives, both paid and unrequited, to facilitate investments. Bedrettin Gurcan, "According to the region where the investment will be made up to 50 percent of some of the incentives provided in the form of loans, some of the grants. While the rates applied in incentives vary by region, maximum exemption rates are given according to the size of the investment. 20 percent of companies can be made for additional "said.
Hungarian Eximbank, which wants to attract Turkish investors to the country, opened a credit limit of 420 million dollars in order to support this aim.
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ESTABLISHING THE COMPANY AGAINST OTHER EU COUNTRIES IS EASIER
Referring to the ease of company installation Av. Bedrettin Gürcan said, uz We support the commercial activities and establishment of many well-known Turkish and foreign private companies in Hungary. It is possible to establish a company by proxy in Hungary and the establishment of the company results in 2-15 days. Unlike most European countries, opening a bank account is also free. The total installation cost of a company varies between 1,000 and 500 thousand dollars ”.