17
Mon, Mar
64 New Articles

Under Hungarian private law, legal relationships aimed at performing various tasks on the basis of instructions are generally based on either employment contracts regulated by Act I of 2012 of the Labor Code (Labor Code) or services agreements governed by Act V of 2013 of the Civil Code.

An increase in foreign investor activity, energy sector regulation shifts, as well as the incoming challenges brought by the impending ESG Act and NIS2 cybersecurity directive are all keeping lawyers in Hungary quite busy, according to Partner Gergely Szabo of Ban, S. Szabo, Rausch & Partners.

On 19 October 2023, Ambassador Harry Alex Rusz, Permanent Representative of Hungary to the Council of Europe deposited the instrument of ratification of the Amending Protocol to the Convention for the Protection of Individuals with regard to the Processing of Personal Data.

In a recent case, the Hungarian Supreme Court had to decide whether a Hungarian undergraduate student studying economics and carrying out international forex transactions can be considered as a “consumer” and thus eligible for starting litigation at his residence, in Hungary against the foreign platform service provider?

In import-export transactions across Europe, it is common for sellers to protect the assets they have sold by retaining the ownership title until the buyer has paid the full purchase price. Retention of title allows sellers to reclaim the assets if the buyer fails to pay, and even if the buyer goes bankrupt before payment is made. In Hungary, however, such an arrangement can lead to unpleasant surprises for sellers.

A legislative proposal has been submitted in November 2023 on the system of utilization of national data assets. The primary objective of the proposal is to ensure the applicability of the data governance regulation in Hungary and to make the existing laws on secondary usage of the national data assets coherent in a regulatory environment. The scope of the proposal covers services related to the use of data processed by public authorities, the performance of other related public tasks and data collection and analysis in support of government decision-making.

Under the EU's Foreign Subsidies Regulation (FSR), companies must notify the European Commission in advance of certain acquisitions, mergers or large public procurement transactions if the groups of companies involved have received financial contributions from outside the EU. Compiling the notification and gathering the necessary information can be a heavy administrative burden for companies, and failure to do so can result in fines of up to 10% of the group's worldwide turnover.

The Hungarian Ministry of Finance published its draft legislation for the implementation of the global minimum tax rules in Hungary for public consultation in October 2023. The package also contained some limited reasoning and impact assessment and stakeholders had one week to comment on the proposal.

In order to boost corporate lending and thus increase economic competitiveness, the legislator recently implemented changes to the Hungarian Companies Act. From 1 January 2024, companies will have to provide additional information about the finances of the company in the registration or modification procedures. In this article, we summarize the new rules and the related deadlines.

Hungary Knowledge Partner

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.

With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.

We are a true full-service firm, providing our private and public sector clients with advice on all aspects of their business. This includes transaction-related advice, people and employment, commercial dealings, litigation, information technology, media and communications, intellectual property, insurance, tax, real estate, and restructuring plans.

DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.

Firm's website.

Our Latest Issue