TISZA Government 2026: What Foreign Investors Need to Know About Doing Business in Hungary

Hungary has entered a new political and economic phase following the landslide victory of the TISZA Party. This decisive electoral outcome significantly increases the likelihood that the party’s programme will be implemented in practice. The programme of the TISZA party sets out a comprehensive reform agenda that could reshape the country’s legal, regulatory, and business environment. For foreign investors, understanding these planned changes is essential when evaluating market entry, expansion, or risk exposure in Hungary.

A key priority of the proposed TISZA government is the restoration of the rule of law and institutional stability. The programme clearly commits to rebuilding democratic checks and balances, eliminating political influence over state institutions, and introducing a strict zero-tolerance approach to corruption. It also foresees investigations into past abuses and the recovery of misappropriated public assets. In addition, the government plans to establish a dedicated asset recovery authority, disclose previously undisclosed state decisions and contracts, and join the European Public Prosecutor’s Office.

For investors, these measures point toward a more transparent and predictable legal framework. At the same time, they may involve increased scrutiny of past transactions and existing state-linked arrangements, particularly in regulated sectors and public procurement.

Another central objective is the normalisation of Hungary’s relationship with the European Union. The programme explicitly states that approximately HUF 8,000 billion in previously frozen EU funds is expected to be unlocked, while future EU budget cycles may contribute around HUF 2,000 billion annually to economic growth from 2028–2029. Alongside this, the government intends to rebuild cooperation with Western allies, including the EU and NATO.

From a business perspective, improved EU relations could enhance macroeconomic stability, strengthen investor confidence, and create substantial opportunities through EU-funded infrastructure and development projects in Hungary.

The programme also places strong emphasis on restoring investor confidence and restarting economic growth. It links improved governance and reduced corruption with lower sovereign financing costs and declining interest expenditures over time. The government’s stated goal is to stabilise public finances while simultaneously stimulating economic activity, which may contribute to a more stable investment climate.

In terms of taxation and business regulation, the programme promises a reduction of the overall tax burden and the introduction of a fairer and more efficient tax system. It also aims to simplify administrative procedures for businesses, particularly by reducing the time required for tax compliance from approximately 300 hours per year to around 150 hours, in line with the EU average. For foreign investors, this could translate into lower compliance costs and a more business-friendly regulatory environment.

The economic development strategy further focuses on supporting businesses, innovation, and integration into global markets. The programme envisages state-backed loans and guarantees for small and medium-sized enterprises under transparent conditions, as well as corruption-free tendering procedures. It also promotes the development of supplier capabilities, innovation networks, and research and development, with a target of increasing R&D expenditure to between 2% and 3% of GDP. These measures are designed to strengthen Hungary’s position in international supply chains and to support higher value-added industries.

Public investment is another important pillar of the programme. Planned improvements in infrastructure, transport, healthcare, and education are expected to be financed through EU funds, reallocated state resources, and savings from anti-corruption measures. This may result in increased opportunities in public procurement and large-scale development projects, particularly if transparency commitments are effectively implemented.

The programme also introduces measures affecting the labour market and domestic demand, including wage increases, expanded social benefits, and continued family support schemes, combined with investments in education and workforce development. While these policies may increase labour costs, they may also contribute to a more skilled workforce and stronger internal consumption, which can be beneficial for long-term business growth.

At the same time, the economic model combines tax reductions with increased public spending and redistribution measures, including a proposed wealth tax targeting high-net-worth individuals. The programme assumes that economic growth, improved governance, and access to EU funds will provide sufficient fiscal space to support these policies. Investors should therefore closely monitor fiscal developments and implementation details.

Importantly, the programme acknowledges that the transition will not be immediate. It explicitly states that existing contracts, public procurements, and state commitments may be reviewed or suspended, and that previously undisclosed financial obligations may emerge. This suggests that the initial phase of a government transition could involve a degree of legal and regulatory uncertainty.

In summary, the TISZA programme outlines a shift toward a more transparent, EU-aligned, and growth-oriented business environment in Hungary. For foreign investors, this may create significant medium- to long-term opportunities, particularly in EU-funded projects, infrastructure development, and innovation-driven sectors. However, the short-term transition period will require careful legal assessment, especially in relation to existing contracts and regulatory exposure