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However, in practice, we all get drawn pretty quickly into a web of  expats with their own newspapers, bars, social clubs and - most importantly - networks. These groups are not cliquey at all, and are actually very easy to join whether you are just passing through or whether you are a new long-term resident.   Budapest is no exception to this rule. Since absolutely no expat speaks the local language, and every one of the 40,000 expats speaks English even if not as a first language, they are bound to get together, share experiences and help each other out. This can be a very rewarding experience. Most expats in Budapest are of working age - many own or have high positions in companies here, others have fallen in love with the city or one of its inhabitants and come looking for a job. Expats have a reputation for being more entrepreneurial and better risk-takers than the Hungarians, and you can easily come here and talk your way into a job pretty quickly. This is still the wild east, where you are more likely to be employed on the basis of a casual conversation in a bar than on your Harvard MBA. If you are not suited to the job, you will be out again just as fast. Although you will earn less than at home, you will earn more than a Hungarian and consequently you will have a higher spending power than you would at home. If you want to run a business in Hungary, you will find it a real land of opportunity with almost limitless potential. It is free wheeling and dealing and there are few obstacles in your path. You can set up with almost nothing and hire help for a few hundred dollars a month. Here the opportunity and unfettered capitalism of the new east meets the relative stability of the west, creating the ideal business environment. If you choose your business partners carefully you can be reasonably sure here that people will stick to their promises, and you will certainly not encounter any resistance to being a foreigner in business - in fact, the Hungarians love foreign-owned businesses which are seen as offering better quality and service.

Budapest - Paris of the East - The Pearl of the Danube, The Little Paris, The City of Baths: Budapest has many names and many personalities Buda and Pest, two cities situated on each side of the Danube River,  Budapest is a highly cultured city with a fine populance and it is also one of the most beautiful cities in the world. Expatriates are now living in Budapest. Everyone we have talked to gives Budapest five-stars. We'd like to do an entire edition on the city. Consider this article a start in that direction. .

Aside from two English-language weeklies (The Budapest Sun and Budapest Business Journal) there are many sources of help and support such as the Amcham (American Chamber of Commerce), its British equivalent and also the "Brit Club", another business networking group. The German speaking expat community is also well represented, with two German weeklies and more clubs and networks.

Of course, an even better situation is one where you bring your business with you - to carry on earning your income in hard currency, while cutting your overheads in half and perhaps having a few hours a week free to participate in little "hobby" businesses locally, such as real-estate investments, which can end up paying out jackpots. Just as large companies like Volkswagen and Philips have done this, many smaller or one-man businesses such as high-tech companies, publishers and consultants are doing the same as location matters less and less. Within a few hours of leaving your luxury office overlooking the Danube, you can be anywhere in Europe.

What effect has the war in Yugoslavia had on Hungary?

There has been no effect on day-to-day life. Budapest is eight hours from Belgrade and there is no reason why it should be any more threatened than, say, Vienna. The Balkans have a history of conflict but (except for the world wars) Balkan wars have not extended to Hungary. In fact the war has had a positive effect on the Hungarian economy which has been supplying NATO. There is a strong anti-war feeling amongst many Hungarians, but on the other hand they appear to believe it is right to stick to their NATO treaty obligations. Hungary joined NATO just twelve days before the war began.

Is Budapest a city for "PTs"?

Yes, most definitely. Budapest has a high standard, low cost lifestyle and the government is not concerned about foreigners provided they do not meddle in Hungarian affairs. Most foreign passport holders can stay visa-free for between three and six months, and many longer-term workers avoid registering with the authorities by simply travelling to nearby Vienna occasionally. It is easy to conduct business in Hungary, using either a local or an offshore company, without becoming officially resident, simply using a pre-paid mobile phone card for communication.

Is Hungary a good retirement destination?

Budapest is a young city. If you have a sense of adventure and are looking for a way of staying young, then the answer is yes. If you are looking for a quiet life with every convenience, then the answer is no. Hungary has beautiful lakes and forests where you can buy a house or even a castle for renovation at the same price you would pay for an apartment other places, but you will find there is mighty little there, and outside the capital you might encounter language difficulties and start to get a little depressed at the long winters. But one person's hellhole is another's window of opportunity…

What are communications like?

The former state telephone company MATAV is now majority owned by German giant Deutsche Telekom. The phone system is modern, efficient and mostly digital. Although international calling is relatively expensive, increased competition will drive this down in the next year or two. The mobile phone penetration rate is very high. Hungary has two GSM networks and a third being built, with calling costs being low by mobile standards. Internet access is excellent and cheap. Hungary has the second highest  (after Estonia) proportion of homes connected to the internet of all the former Communist countries. The postal system is adequate and improving. It works, but international mail costs Western European rates but without the speed and service to match. Anything urgent should be couriered.

What is the best way to get to Budapest?

Of course there is an airport, with direct flights worldwide. On arrival the best way to continue is with the shared airport minibus which will take you to the door of any downtown address for about $6. You can also reach Budapest by train, including overnight direct trains from Paris and Brussels. Alternatively take the highway from Vienna, which was finished just a couple of years ago and was built using French road-building skills.

What about my personal safety in Budapest?

Since the fall of Communism, the authorities have had a difficult time controlling the growth of organised crime, but as an expat you are not likely to encounter this unless it is your lifelong dream to own a bar or a strip joint. Following bad publicity in 1997 which was damaging the tourist industry, the government has clamped down hard on overcharging by taxi drivers and restaurants, although the American and British embassies still publish restaurant "blacklists". Care should always be taken of personal belongings and parked foreign cars are popular targets, but overall you will be quite safe in Budapest. It is like a western European city - forget horror stories you have heard about Eastern European countries such as Russia or the Ukraine. Budapest is not like Moscow.

The author lives in Budapest. He is currently investing in real estate. Contact Thomas Dombrowski  by telephone at: +36 302092204 or by email at: info@budapest-invest.com -