The current rules on foreign direct investments (FDI), which are already quite restrictive, will be tightened further from January next year: the current exemptions will be narrowed, and the Hungarian State will have a right of first refusal for solar power plant investments. The government is trying to address a long-standing and sensitive issue for domestic energy policy, while also affecting other non-renewable investments by tightening the exemptions.

In its recent judgment, the Supreme Court of Hungary examined the right of the employer to unilaterally determine the employee’s place of work, within the geographical area stipulated in the labour contract. In our article we examine what aspects shall the employer take into account and what are the employee’s rights in such cases, based on Hungarian case law.

As of 1 January 2024, the Hungarian Parliament is expected to introduce a new framework for the conditions of residence and employment of third-country nationals in Hungary, significantly rewriting the existing rules.

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.

In Hungary, adherence to regulatory requirements is pivotal for the operations of domestic legal entities or businesses. Recently, there have been discussions regarding the significance of possessing a domestic bank account as mandated by Hungarian law, and the implications for companies failing to meet these criteria.

Technical guidance published on the websites of the Hungarian Competition Authority (HCA) and the Public Procurement Authority in November 2023 on corruption risks and cartel agreements affecting the fairness of public procurements.

Cerha Hempel, working with the Italian offices of K&L Gates, has advised the EBRD on the sale of a 15% stake in Erste Bank Hungary to the Erste Group Bank. Addleshaw Goddard reportedly advised the Erste Group Bank.

Do defendants need to make a formal setoff statement against the creditor’s claim in front of the judge to extinguish the claimant’s claim? Or is it enough to refer informally to an earlier setoff made by them prior to the litigation? A fresh decision of the Hungarian Supreme Court, analysed in this article, gives answer to these questions.

On November 21, 2023, corporate/M&A and private equity experts from Bulgaria, Greece, Hungary, Kosovo, Moldova, Romania, Serbia, Slovakia, Turkiye, and Ukraine sat down for a virtual round table moderated by CEE Legal Matters Managing Editor Radu Cotarcea to discuss the key developments in the field over the past decade.

Forgo, Damjanovic & Partners Managing Partner Zoltan Forgo talks about the evolution of the practice and their role as legal advisors in Hungary over the last 10 years.

Nagy es Trocsanyi Partners Orsolya Kovacs and Viktor Jeger discuss the evolution of the energy sector and their role as legal advisors in Hungary over the last 10 years.

Oppenheim has advised the China National Machinery Import & Export Corporation and China Power International Holding on the acquisition of a project company developing a photovoltaic project with an installed capacity of 53.9 megawatts in Tiszafured, Hungary. Schoenherr advised the ID Energy Group on the sale.

AegisLegal has advised STRT Holding on the listing of its shares on the Budapest Stock Exchange.

In the summer 2022, the United States unilaterally terminated the US-Hungary double tax treaty with Hungary.

The Cybersecurity Act imposes new requirements on many companies regarding the operation of their electronic information systems. Organizations have until the end of 2023 to prepare to comply with the new rules.

Kinstellar Partner Balazs Sepsey has been appointed the new Office Managing Partner of the firm’s Budapest Office. Sepsey is taking over from Kristof Ferenczi, who has recently been appointed Kinstellar’s Firm Managing Partner (as reported by CEE Legal Matters on December 8, 2023).

Ban, S. Szabo, Rausch & Partners has advised ITK Holding on its acquisition of Omnibus Hungaria Kereskedelmi es Szolgaltato, a joint venture of EvoBus and Pappas Holding. Noerr reportedly advised the sellers.

At the II National Regulators Conference it was announced that the Digital Citizenship programme to be launched between July and September 2024 and the necessary legislation to be submitted to the Parliament in November 2023. With this step the Hungarian Government follows the trend, where citizens are dealing at an increasing rate with administrative cases on their mobile phones.