Why Hungary

Suspension of guest worker admissions – status: Governmental decree in force

The guest worker residence permit scheme allowing the mass employment of workers hired from third countries has been closed with immediate effect. The reasons for the closure are to limit the large-scale influx of guest workers and to encourage the employment of Hungarian workers. Independently from this measure, employment-purpose residence permits remain still available for foreign workers under the generally applicable rules.

Review of private equity fund rules – status: Published governmental measure

It is proposed to review the existing system and legal framework governing private equity funds, with particular emphasis on the transparency of beneficial ownership structures. The Minister of Finance has been tasked with preparing the draft legislative framework by 15 June 2026.

Utilization of EU funds concerning electricity capacity – source: Press release

Out of the EU funds to be retrieved by Hungary by the end of August, EUR 1.5 billion will be directed towards electricity grid modernization, network expansion and new grid connections. These investments are expected to alleviate existing capacity constraints, accelerate the integration of renewable energy projects, and create a more attractive environment for renewable energy developments.

Unchanged credit rating of Hungary

The three major credit rating agencies have completed the first round of their annual sovereign rating reviews. In the case of Hungary, all ratings remained unchanged. Following the agencies’ confirmation of their previous ratings and outlooks in recent weeks, the next comprehensive assessment of the Hungarian economy is expected at the end of the year.

End of emergency legislation – status: Act of law

At the outbreak of the Russian-Ukrainian war, emergency legislation was introduced granting the Hungarian Government expanded legislative power which was exercised through governmental decrees. Abolishing the opportunity, the state of emergency which had been in place since 2022, came to an end on 14 May 2026.

Amendment to the Hungarian Constitution – status: Parliamentary proposal

A proposal to the Hungarian Parliament was submitted to amend the Hungarian Constitution. According to the proposal, the amendment would limit the term of office of the Hungarian Prime Minister to a maximum of two terms (eight years), abolish the Sovereignty Protection Office, and enable the state to reacquire certain assets transferred to public-interest asset management foundations.

Release of EU funds – status: Press release

An agreement has been reached between Hungary and the European Union concerning the release of EU Funds towards Hungary in the amount of EUR 16.4 billion. The parties have agreed on the specific milestones and conditions for disbursement. The EU funds can be utilized in the following key investment areas: the development of transport infrastructure, healthcare services, social infrastructure, and environmental projects.

Introduction of wealth tax and reassessment of tax exemptions applicable to trusts – status: Published governmental measure

In accordance with the promise undertaken by the new ruling political party a wealth tax will be introduced in Hungary. Further the tax exemptions currently applicable to trusts will be reviewed. The Minister of Finance has been tasked with the preparation of the framework of the relevant legislation by 5 June 2026.

Review of enforcement, notarial and company winding-up proceedings – status: Published governmental measure

It is proposed to review the existing judicial enforcement, notaries, and liquidation/insolvency proceedings. The objective of the reform of these systems is to make the procedures more cost-effective, efficient, and less profit-oriented.