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No Rent for State and Municipal Properties Between 1 February and June 30

No Rent for State and Municipal Properties Between 1 February and June 30

Hungary
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According to a Government Decree passed on 9 February 2021, lessees do not have to pay rent for a property owned by the Hungarian State or the local municipality (or by companies which are controlled by these) for the specified five-month period (February - June 2021). The decree specifies a list of 25 types of activities which are to be alleviated from paying rent, which includes:

  • restaurants, food trucks, event catering, pubs, bars, cafes;
  • conference, trade show and film screening locations;
  • museums and locations related to art;
  • botanical gardens, zoos and nature reservations;
  • sport facilities, gyms;
  • amusement parks, fun parks;
  • spas, massage salons and other wellness services;
  • hotels, holiday accommodations, camping sites, dormitories and hostels and
  • travel agencies, land passenger and freight transport, taxis and buses.

An important criterion for not having to pay rent is that the above activities have to have been started before 4 November 2020. The decree also specifies exemptions, these businesses have to pay rent regardless of the pandemic situation. These are the following:

  • restaurant and buffets located at workplaces;
  • restaurants and bars located at accommodation services;
  • cafeterias and buffets located in schools and educational institutions;
  • restaurants and buffets located in health institutions and
  • the Hungarian National Bank and companies controlled by the Hungarian National Bank.

The decree also clarifies that if the rent for the above months had already been paid, it is to be repaid to the lessee before 15 March 2021.

By Gabriella Galik, Partner, KCG Partners Law Firm

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.

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