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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

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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