Research and Development (R&D) Advisory in Hungary

RSM’s experts support companies across three interconnected areas.

1. R&D project qualification

Identification of research and development activities, structuring of R&D projects and preparation of the technical documentation required for qualification procedures conducted by the Hungarian National Research, Development and Innovation Office (NRDI Office).

2. R&D grants and funding opportunities

Identification of Hungarian and European Union research and development grants, funding programmes and other financing opportunities, together with end-to-end management of grant-funded projects.

3. R&D tax incentives and tax benefits

Planning of R&D related tax base reductions and tax incentives, preparation of tax calculations and supporting documentation, and assistance during tax authority audits.

R&D qualification in Hungary – NRDI Office procedures and documentation

Obtaining an expert opinion from the Hungarian National Research, Development and Innovation Office (NRDI Office, known as NKFIH in Hungarian) is often essential for accessing research and development grants and tax incentives in Hungary. This document confirms that a company's activities meet the R&D criteria established by international guidelines and Hungarian legislation, providing a sound basis for claiming the relevant tax benefits and accessing funding opportunities.

An R&D expert opinion may cover three main areas: assessing whether a project qualifies as research and development, determining the proportions of different R&D activities (basic research, applied (industrial) research and experimental development), and establishing whether the R&D is carried out within the company's own scope of activities. In certain cases, an R&D qualification application must also include a market assessment, which frequently forms an important part of the grant application documentation.

We support our clients throughout the entire R&D qualification process. Our services include appropriately structuring R&D projects, preparing the documentation required for qualification applications, liaising with the NRDI Office and responding to requests for additional information or documentation.

Our aim is to make the R&D qualification process transparent and efficient while minimising the administrative burden on our clients.

How does RSM support the R&D qualification process?

Our experts provide support at every stage of the qualification process, including:

• reviewing the company's research and development activities and projects;
• identifying and appropriately structuring R&D projects;
• preparing the technical documentation required for the qualification procedure;
• preparing R&D qualification applications and supporting their submission;
• liaising with the NRDI Office;
• responding to requests for additional documentation.

R&D grants and funding in Hungary – National and EU funding opportunities

Supporting research and development is an investment that can generate significant long-term economic and social returns. In Hungary, various refundable and non-refundable cash grant schemes are available to support R&D projects and investments. These funding sources can make a substantial contribution to financing innovation activities and facilitate the development of new products, processes and services.

What kind of R&D grants and funding opportunities are available in Hungary?

RSM’s experts assist companies in assessing a range of grant schemes and financing opportunities, including:

• Grants based on individual government decisions (VIP Cash Grant, known as EKD in Hungarian): Grant schemes available under specific conditions for research and development projects and investments.
• Hungarian national and co-financed grant programmes: Including R&D and innovation funding opportunities under GINOP Plus and calls for proposals issued by the NRDI Office.
• Direct European Union funding: Including relevant calls for proposals under Horizon Europe and the Innovation Fund.

R&D qualification is essential in all cases when applying for cash grants, as it confirms that the company's activities meet the fundamental criteria for research and development.

How does RSM help companies access R&D grants and funding?

Our team helps companies identify and make effective use of funding opportunities for their R&D projects. We assist in identifying relevant Hungarian funding schemes (including GINOP Plus, NRDI Office grants and VIP cash grants) and EU funding opportunities (including Horizon Europe and the Innovation Fund), evaluating the available grants and preparing the necessary documentation.

We support our clients throughout the entire grant process, from identifying suitable funding opportunities and preparing applications to the disbursement of the funding helping ensure that the available grants are accessed and managed efficiently.

R&D rax incentives and tax benefits in Hungary

Companies carrying out research and development activities in Hungary may be eligible for various tax base reductions and tax incentive. In certain circumstances, these benefits may be applied in parallel, potentially generating significant tax savings for businesses.

Under the Hungarian tax system, R&D related benefits are currently available in respect of corporate income tax, local business tax, innovation contribution and social contribution tax. In certain cases, the tax liability may be reduced to zero, while corporate income tax benefits may also be available in the form of a cash refund, potentially resulting in substantial tax savings.

RSM’s R&D tax advisory services cover the entire process, from selecting the appropriate tax treatment and quantifying potential tax savings to preparing the necessary documentation and tax returns and providing support during tax authority audits.

R&D tax incentive planning and calculation of potential tax savings

Our experts help clients identify potentially available tax benefits from the initial planning stage of their research and development projects. Our services include:

• Comprehensive R&D tax incentive planning, including identifying and explaining potentially available tax base reductions and tax incentives, taking into account the specific characteristics of each company;
• Preparing R&D tax incentive simulations to estimate the potential tax savings and outlining the supporting documentation required;
• Providing R&D-related advisory services covering Hungarian corporate income tax, local business tax, social contribution tax and innovation contribution;
• Preparing the necessary tax calculations and tax returns.

Review of R&D tax incentives already claimed

• Reviewing existing R&D documentation from a tax perspective, taking into account the eligibility requirements for the relevant tax incentives;
• Preparing and reviewing R&D calculations for corporate income tax, innovation contribution and local business tax returns, including completing the relevant self-revision returns where necessary;
• Liaising with the relevant Hungarian authorities;
• Preparing and submitting requests for tax authority guidance on R&D-related tax matters;
• Providing comprehensive support to companies during audits conducted by Hungarian state and municipal tax authorities.

Why choose RSM for R&D advisory services in Hungary?

• More than 15 years of professional experience: Our expert team draws on extensive experience in research and development, grants and taxation, combined with in-depth knowledge of the Hungarian market and established professional relationships, to help companies develop appropriate solutions.
• RSM’s international network: RSM’s international network of experts enables a coordinated assessment of the grant funding and tax implications of research and development projects spanning multiple jurisdictions.
• Comprehensive R&D advisory services: Our services go beyond grant application preparation or standalone tax incentive assessments. We take an integrated approach to R&D project qualification, funding opportunities and tax considerations, addressing these interconnected areas as part of a comprehensive advisory service.
• Flexible engagement and fee arrangements: Depending on the nature of the engagement, we offer both fixed-fee and success-fee arrangements.