DSS - Digital Startup Strategy of Hungary

The objective of Digital Startup Strategy of Hungary is the promotion of the establishment and development of innovative businesses with a substantial potential for growth. The long-term strategy supports that Budapest and the related university research centres would become thriving startup centres.

DSS is elaborated by the involvement of social, public administrative, professional, and business stakeholders, DSS will formulate a development strategy for digital (but not exclusively IT) startups for the period up to the end of 2020. The overall strategic objective is to ensure a balanced development of the startup ecosystem by strengthening entrepreneurship, entrepreneurial competencies, and the culture of cooperation, developing a supportive business environment and making available sources of financing in a targeted manner.

DSS is elaborated by the involvement of social, public administrative, professional, and business stakeholders, DSS will formulate a development strategy for digital (but not exclusively IT) startups for the period up to the end of 2020. The overall strategic objective is to ensure a balanced development of the startup ecosystem by strengthening entrepreneurship, entrepreneurial competencies, and the culture of cooperation, developing a supportive business environment and making available sources of financing in a targeted manner.

The main task of the Startup Hungary Centre for Methodology and Coordination (SH), established in March 2017, is to implement the Digital Startup Strategy of Hungary and to create its monitoring system, and the coordination of programs in order to develop the startup ecosystem.

Tax-allowance for angel-investors

Linked to the Digital Startup Strategy of Hungary, from 2017 related to early-stage companies a new so-called tax-allowance for angel investors has been introduced. The allowance permits investors to reduce their corporate tax base by the cost of shares acquired in such companies. The condition for obtaining the allowance is that both the startup and the business company (angel investor) investing in such enterprises apply for registration at the Hungarian Intellectual Property Office. Proceedings before the Office are free of charge and can be performed entirely electronically.

The most frequently asked questions related to tax-allowance for angel-investors are available here. (in Hungarian)

The Digital Startup Strategy of Hungary which was adopted by the Government Decree 1858/2016 (XII. 27.), is available here.