Since COVID, we have been living with a rule that makes the acquisition of ownership by foreigners in certain Hungarian companies operating in strategic sectors subject to government approval. Although we can no longer speak of a state of emergency, the rule is expected to stay with us for long – albeit with several modifications along the way, as happened in January this year.

When a creditor seeks to enforce a monetary claim in Hungary, the path to actual recovery can be far from straightforward. Below we outline the main stages and legal tools available under Hungarian law — and why engaging a skilled lawyer early on can make all the difference.

Nowadays, we use software even when we're not aware of it, as everything from cars to smartwatches and household appliances, without exception, is operated with the help of some software or application. However, few people know that in the development of any software, there is a good chance that open-source software is used. Open-source software offers excellent solutions and an inexhaustible knowledge base, but its legal implications are far from clear.

According to the opinion released yesterday by the advocate general of the European Court of Justice, the Hungarian regulation that prohibits foreign taxpayers from submitting their documents in the second instance (appeal) procedures in VAT refund cases violates European law. If the final judgment will align with this opinion, it would not only simplify the process for foreign businesses to claim VAT refunds in Hungary but would also open the possibility to reclaim previous VAT payments.

The rules for shop closures are tightening, and next year, those who violate invoice or receipt obligations may not necessarily get away with just a warning. Considering that even a few weeks of closure can cause significant damage to a company's life, it is advisable for businesses to tighten their processes and supervision of their employees.

Hungarian structured finance transactions rely on a clear and enforceable security framework. The Hungarian Civil Code provides lenders with a comprehensive set of security interests that can be flexibly structured to support complex financing arrangements and to mitigate credit risk in secured lending transactions.

As of 1 January 2024, a long-standing dream of startups is coming true: these companies can provide shares to their employees and executives tax-free. As a result, the ownership mindset and motivation of these individuals can be efficiently ensured without tax burdens.

Buying or selling real estate in Hungary is a private agreement between a seller(s) and a purchaser(s). The process is governed by strict form and content requirements and overlooking them may easily put the entire transaction at risk. Understanding these rules in detail — from formal signatures and escrow arrangements to the special restrictions applying to agricultural land — is the key to ensuring that every property transfer is not only valid on paper, but also secure and enforceable in practice.