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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.

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.

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com