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Further Steps to the Digital State

Further Steps to the Digital State

Hungary
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At the end of 2023, the Hungarian Parliament adopted the Act on the Digital State and Certain Rules for the Provision of Digital Services (“Digital State Act”), the majority provisions of which will enter into force on 1 July 2024. This act opens a new era in the digitalization of public services, serving the 21st-century administrative needs of the Hungarian people and economic operators.

In the third decade of the 21st century, the most important tool for digitalization is the mobile phone, the smartphone. Therefore, from 2024, ID cards, paperwork and signatures will gradually move to mobile in Hungary. Under the Digital State Act, the state will create a mobile application that will be accessible to all Hungarian citizens, making it easier to manage more and more matters without queuing or sending postal mail.

In addition to the drafting and scheduled entry into force of the new Digital State Act introducing digital citizenship and the repeal of the previous E-Administration Act, the expected results need to be achieved that the Parliament also adapts all laws to the new rules, where digitalization facilitated by the state is of key importance. As a result, on 7 May 2024, the Act on the Amendment of Certain Laws for the Implementation of the Digital State was published in the Hungarian Gazette which is a package of amendments to a number of laws ensuring legal and technical compliance with the new Digital State Act.

The act amends several laws, including the Act on Notaries, the Act on the Registration of Personal Data and Addresses of Citizens, the Act on Personal Income Tax and the Act on the Activities of Attorneys. For instance, the amendment of the Act on the Registration of Personal Data and Addresses of Citizens lays down the provisions necessary to establish the necessary data links between the digital citizenship register and the register of personal data and addresses. The amendment creates the conditions for pre-registration for digital citizenship: citizens will be able to pre-register for digital citizenship at government offices, in addition to proving their identity. By amending the Police Act, citizens will be able to provide credible proof of their identity by presenting a visual code on their phone - equivalent to presenting a physical document - during police stops. The provisions of the act will enter into force gradually from 17 May 2024 until 1 January 2026.

By Lidia Suveges, Attorney at law, 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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