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("Architecture Act") entered into force on 1 October 2024, as a result of which the previous Building Act was repealed.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.
Tax Penalty Amounts Doubled in Hungary
Default penalty amounts generally has been doubled in Hungary as of 1 August 2024. According to the Governmental Decree published in the Hungarian Gazette on 8 July 2024, overwriting the Act on the Rules of Taxation, the increase is due to the Ukrainian war and is theoretically effective by the end of the emergency period.
Hungary and Switzerland Strengthen Economic Ties with Updated Tax Treaty
Hungary's growing economic performance and competitive tax system offer a good business environment for companies from Switzerland, while the presence of Hungarian companies in Switzerland is also growing.
Changes in the Designation of Building Authorities
On 8 August 2024, a new Government decree was published on the designation and operating conditions of the building authorities.
New Regulations on Online Payments in Hungary: What You Need to Know
In July 2024, the Hungarian Government introduced significant changes to the regulations governing online payments, aiming to enhance consumer protection and the security of electronic transactions.
Guest Worker Residence Permit – The list of Eligible Countries is Finally Here
In 2024, Hungary introduced new regulations concerning the employment of guest workers. The new law, which took effect at the start of the year, outlines specific criteria for obtaining a guest worker residence permit. Under the new regulations, a guest worker can receive a residence permit if the following conditions are met:
New Legislation to Fight Against Money Laundering and Terrorist Financing
To support the prevention of money laundering and terrorist financing, on 26 June 2024, the Hungarian National Bank issued two new regulations, incorporating changes in domestic legislation, guidelines of the European Banking Authority and lessons learned from supervisory experience.
The Social Tax on Interest Income Remains with Us
Since 1 July 2023, interest income has been subject to a 13% social contribution tax (‘szocho’) in addition to the 15% personal income tax (‘szja’). Originally this was only for the duration of the emergency caused by the armed conflict in Ukraine. However, a new act published in the Hungarian Official Gazette on 18 June 2024, changed the situation.
New Activity Codes: Administrative Obligations for Hungarian Companies
In July 2024, the Hungarian Central Statistical Office began sending formal notifications via email regarding changes to the statistical codes of various activities. Although the required procedure takes only a few minutes, non-compliant companies may face penalties.
Significant Changes in the Administrative Service Fees of Land Registry Proceedings
From 29 July 2024, the administrative service fees relating to procedures for land registry, plot formation, land surveying and mapping, and the provision of data from the land register and the state databases will be increased significantly.