The longstanding partnership between Hungary and Serbia has taken another step forward with the recent amendment to the double taxation convention. These agreements are crucial for eliminating double taxation on income and assets for both individuals and companies, fostering a more favorable business climate.
A New Central Consumer Body is Expected from 1 January 2025
On 10 October 2024, the Ministry of National Economy published a draft Government Decree on the National Trade and Consumer Protection Authority and another one on the amendments to the Government Decrees related to the establishment of the National Trade and Consumer Protection Authority.
Parliament Decided to Extend the State of Emergency
The Hungarian Parliament voted to extend the state of emergency with an additional 180 days. The Hungarian Government declared a state of emergency by a government decree that entered into force on 25 May 2022.
Stricter Emission Limits for Toxic Substances Introduced in the Environmental Regulation
The Ministry of Energy, taking into account regulatory experience as well as public feedback, has adjusted the emission limits for several particularly toxic air pollutants in factories, raising them to stricter levels in line with German standards, which are more stringent than the EU regulations.
Streamlined but Subtle: Proposed Legislation Set to Simplify Business Compliance
In a bid to enhance legal competitiveness, a new legislative proposal aims to streamline regulations in environmental protection, waste management, consumer rights and workplace safety, boosting the competitiveness of domestic businesses. The proposal is currently under public consultation, but it already highlights several key changes that may be of interest to various sectors.
The Maximum Fine that the Competition Authority Can Impose Has Increased
From 1 August 2024, the maximum fine that can be imposed by the Hungarian Competition Authority equals 15% of the undertaking’s net turnover. According to the Authority’s statement, its primary objective is not to impose fines, however, the increase in the potential financial penalty is a strong deterrent. In any case, it can be observed that the Authority is becoming more and more stringent concerning fines: while in 2023 it imposed fines totalling HUF 2.2 billion, the total amount of fines imposed this year exceeded HUF 2 billion by August.
Green Investments and Energy Efficiency Improvements Expected in the Autumn
A new draft regulation was put to public consultation until 27 September 2024 that could bring significant changes to the operation of district heating systems in Hungary. The aim of the regulation is to increase the use of renewable energy sources such as geothermal and biomass in district heating, thus reducing dependence on natural gas and costs.
Employment Rules for Guest Workers May Be Tightened in Hungary
According to the latest data from the Hungarian Central Statistical Office, nearly 100,000 foreign nationals were employed in Hungary as of July 2024, with almost 80% coming from third countries. After years of government-led anti-immigration messaging, many Hungarians have expressed fear and outrage at the sight of large groups of Indian, Filipino, and Vietnamese workers in smaller towns, perceiving them as competition for job opportunities.
Hungarian Government Forbids Solar Panels on Balconies and Agricultural Lands
On 1 October 2024, the Hungarian Government published a decree on the basic regulations of settlement planning and construction requirements, which fundamentally rewrites and clarifies the frameworks for construction and property planning in many areas. Among these, one regulates the placement of solar panels and solar collectors, while another sets out the general framework for the installation of wind turbines.
Several New Government Decrees in the Subject of Architecture from 1 October 2024
Several provisions of the new Act on Hungarian Architecture ("Architecture Act") entered into force on 1 October 2024, as a result of which the previous Building Act was repealed. The Architecture Act has taken over and supplemented many of the provisions of the previous Building Act, however, also contains a number of new rules.
Manufacturing of Batteries Will Be Subject to Environmental Impact Assessment
In the middle of July 2024, the Ministry of Energy announced that the Government will make it mandatory for manufacturers of batteries and their components, as well as battery waste managers, to carry out an environmental impact assessment procedure.
Main Provisions of the Hungarian Architecture Act to Enter into Force from October
On 1 October 2024, the most important provisions of the new Hungarian Architecture Act will enter into force, completely transforming the current system of rules governing construction activity in Hungary.
Instead of Reviewing the GDPR, Commission Proposes to Amend its Enforcement Rules
The European Commission had previously indicated that it will review the provisions of the General Data Protection Regulation (GDPR) this year to see if any changes are needed in light of the experience of the past six years.
Governmental Efforts to Raise the Minimum Wage to the Level of the Guaranteed Minimum Wage
The minimum wage (statutory minimum wage) is the amount that an employer must pay to an employee for his/her work, in any case of a full-time job. Guaranteed minimum wage is also considered as a type of minimum wage for jobs requiring at least secondary education or secondary vocational qualifications, hence it is always a higher amount.
Which Workplaces Will Remain Subject to Mandatory Medical Checks?
As of 1 September 2024, not all employers are obliged to carry out compulsory medical examinations of their employees. The Labour Safety Act stipulates that other laws may specify the types of work for which such examinations will be compulsory. The Ministry of the Interior published a decree on the subject on its website at the end of August and it became applicable on 1 September 2024.
New Decrees Supplementing the Hungarian ESG Act Entered into Force
In the Hungarian Gazette of 15 August 2024, two new SZTFH (Authority for Regulated Activities) decrees were published, which supplement and further detail the provisions of the Hungarian ESG Act. The first decree on the register of ESG reports, software and qualifiers entered into force on 18 August, while the provisions on the registration of ESG reports and qualifiers enter into force on 16 September.
Unlocking the Future: The Benefits of a Fully Electronic Land Registry in Hungary
Starting from 1 January 2025, Hungary moves to a fully electronic land registry system following many delays and the potential benefits are transformative. The push for this modernization began in the 2010s, spurred by the success of electronic property registration systems across Europe. Countries like Austria and the Czech Republic have been using electronic land registries since 2001, with Slovakia, Romania, Poland, and most recently Bulgaria following suit in 2021. While these countries maintain paper-based options, the shift toward digital processes has proven advantageous.
New Decrees on ESG Consultants and Educational Institutions Entered into Force
In the Hungarian Gazette of 8 August 2024, four long-awaited decrees were published, which supplement and detail the provisions of the Hungarian ESG Act.