Hungary is one of the success stories of post-communist transformation. The country offers better conditions than most other Central European countries with regard to the social organization and the business environment. Among recent significant progress can be mentionned the reforms the improvements of the legal framework and the computerization of the public administration. Hungary’s top income tax rate is 40 percent. The top corporate income tax rate is 18 percent.

The legal and administrative rules are however constraining for SME. The lack of responsibility of civil servants and the weight of the institutions and the Administration in business is also a drawback. In addition, corruption tends to increase.

2004 Index of Economic Freedom

Source: Heritage Foundation, 2004