Hungary: Business Environment
New Year | 1 January |
Memorial Day: Revolution for Independence | 15 March |
Easter Monday | March or April |
Labour Day | 1 May |
Pentecost Monday | 20 August |
Saint Stephen's Day | 23 October |
Holiday of the Republic | 1 November |
Christmas Holidays | 25 and 26 December |
End of the year holidays | 22/23 December - 2/3 January |
Hungarian organisations often follow a hierarchical structure. It is therefore recommended to be respectful and formal towards executives and managers, who will make all major decisions. Employees are not always expected to give their opinions in the decision-making process.
Personal relationships are an essential part of doing business in Hungary, as are contacts and networks. Business relationships are usually built on trust and familiarity, so they often involve socialising outside the workplace. Business lunches and dinners are common for getting to know people, but formal negotiations are not normally held over meals.
Projects should be well researched and backed by convincing arguments, and presentations should be thorough and accurate. Confrontational behaviour or high-pressure sales tactics don't often work when negotiating, and should be avoided. Knowledge, background information and hard facts are appreciated. Decisions are often not made on the spot. Talks can last for extended periods of time, and only when management has had time to reflect and discuss can agreements be reached. Hungarians tend to be flexible and well prepared business negotiators. As their main goal is to obtain a final agreement, they don't mind compromising.
Hungarian communication tends to be indirect. However, debate is regarded as healthy. Also, it's advised to avoid exaggeration. Stories, anecdotes, and jokes are often used to prove points; and debates tend to be prolonged. Promises made during meetings are usually respected, but agreements are only binding when written, so it's advised not to rely on verbal agreements.
Business meals usually take place in restaurants, and being invited to a business contact’s home is rare - and is only to be expected if the business relationship turns into friendship. Business lunches are common, but dinners are the preferred meal for meetings. Both business lunches and dinners tend to be formal, unless stated otherwise. When a business dinner is more for entertaining than discussing business, it will not be as formal and the Hungarian counterpart is expected to inform about it beforehand.
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Latest Update: July 2024