Hungary introduced new regulations for employing guest workers from third countries. These updates specify eligible countries and permit requirements to align with Hungary’s labour market needs and compliance standards.

Eva Kovacs has joined Jalsovszky as a Managing Associate and the firm’s new Head of Real Estate Practice.

Jipyong Partner Ji Hye Lee has joined Oppenheim’s Korea desk in Budapest.

DLA Piper has advised the Government Debt Management Agency (AKK), acting on behalf of the Republic of Hungary, on an international syndicated revolving credit facility agreement for a total amount of EUR 1.5 billion with 13 undisclosed Hungarian and international banks. CMS advised the coordinating banks.

The Hungarian Act on Fees and Duties will be changed significantly as of 28 January 2025, which will also affect the fees for court proceedings.

Highlights in Hungary are delayed real estate digitization, stricter ESG compliance, and regulatory deal flow complexities, according to Szecskay Senior Partner Judit Budai, with her projecting that sectors like IT, defense, infrastructure, and ESG compliance will dominate the agenda in the near future.

The legislator recently introduced a number of implementing regulations for the Architecture Act and more are expected in the near future. In this article, DLA Piper Hungary's lawyers outline the key details of the new, generally mandatory contractor's professional liability insurance, taking into account that contractors must have such insurance from 15 January 2025.

Oppenheim and Invicta have advised JRD Energo Group and its co-investors on the sale of JRD’s Hungarian photovoltaic power plant portfolio with a 29.440 kilowatt built-in capacity to the Hungarian subsidiary of Obton. Forgo, Damjanovic & Partners and Havel & Partners advised Obton.

Based on the contents of the government decree on construction works in effect since 1 October 2024, all domestic construction or design firms and self-employed persons must have compulsory contractors' liability insurance starting from 15 January 2025.

On 1 January 2025, inter alia, an amendment to the Personal Income Tax Act relating to intellectual property (IP) contribution entered into force.

The AI Act introduces a comprehensive legal framework for companies dealing with AI systems in the EU. From 2 February 2025, companies subject to the regulation must take steps to ensure AI literacy and ensure that no prohibited AI practices are used. Non-compliance could lead to substantial fines.

Cytowski & Partners has advised Hungary-based Axoflow on its USD 7 million seed series with the participation of the EBRD, Credo Ventures, and E2.VC. Dentons reportedly advised the EBRD.

Former Indotek Group Senior M&A Legal Counsel Laszlo Palocz has returned to Kinstellar, joining the firm’s Budapest office as Counsel.

As part of the fall tax package, the Hungarian Government proposed an automatic, inflation-tracking increase of tax on, inter alia, energy products as of 2025. The actual increase from 1 January 2025, however, significantly exceeds the current (and expected) inflation levels. This might concurrently lead to increased inflation again.

In The Debrief, our Practice Leaders across CEE share updates on recent and upcoming legislation, consider the impact of recent court decisions, showcase landmark projects, and keep our readers apprised of the latest developments impacting their respective practice areas.

In The Corner Office, we ask Managing Partners at law firms across Central and Eastern Europe about their backgrounds, strategies, and responsibilities. This time around we turn our attention to setting up new practices and ask: When launching a new practice, what is your go-to strategy – do you look at internal team members to spearhead it, or are you more likely to turn to lateral hires? Why?

According to the National Employment Service’s study on foreign workers, at the end of 2023, there were a total of 87,661 work permits in force, a figure that has increased significantly in the last two years, with only 34,000 valid permits at the end of 2021 and slightly more than 51,000 in 2022.

Dalma Ordogh has joined KPMG Legal Hungary as a Director.