Hungary announced to cut the tax on cryptocurrency earnings by 50% to encourage investors to declare income from trading digital tokens such as Bitcoin. The Hungarian Parliament accepted the tax package for 2022 on 9 June 2021. The package contains inter alia significant simplification and tax reduction with regards cryptocurrencies.
Crowdfunding is a type of intermediation where the service provider operates a platform (e.g. website) open to the public. The purpose of that platform is to match enterprises seeking financing with prospective investors. The enterprises typically receive small amounts of money from many investors (usually natural persons), via lending (lending-based crowdfunding) or investment into shares (investment-based crowdfunding). Some of the best-known crowdfunding platforms are Kickstarter or Indiegogo. By introducing a single European regulatory framework, the uncertain Hungarian legal environment might change, potentially giving a boost to the crowdfunding market.
The global pandemic has impacted all markets, with subsequent ramifications for M&A. Investors are now seeking greater protection against general lock-downs and supply-chain disruptions, while governments aim to protect critical supplies and services by imposing new regulations on foreign investment in crucial or strategic industries. If you are considering investment opportunities in Hungary, take a look at this overview to get insight into the regulations on foreign investment in strategic industries.
Hungary was one of the last EU countries to introduce a register of ultimate beneficial owners. While the provisions of the Fourth and Fifth AML Directives were already implemented in the Hungarian AML Act, the technical conditions on the actual operation of the UBO register were only adopted by Act XLIII of 2021 ("UBO Register Act") and are in force as of 22 May 2021.
BDK Advokati and Lakatos, Koves & Partners have advised Hungarian real estate investor Indotek Group on its EUR 267.6 million acquisition of 11 office buildings from Globe Trade Centre in Belgrade, Serbia. Zavisin Semiz & Partneri advised GTC on the Serbian legal aspects of the deal. The Budapest office of Dentons also reportedly advised the seller.
Hungary is one of the first countries in CEE to fully implement Directive 2019/790 on Copyright in the Digital Single Market ("CDSM Directive") and Directive 2019/789 ("SatCab 2.0 Directive"). The so-called "Copyright Reform Act" (Act XXXVII of 2021) was published in the Official Gazette on 6 May 2021, and the majority of the new rules will be effective as of 1 June 2021.
In any economy transport infrastructure is vital for enabling the flow of goods and people. Two salient features of the transport environment in Hungary are the country’s location “between East and West” and, within the country, the significant work which has been done to develop the motorway network. Many of the issues referred to below can be traced back to one or both those factors.
Starting from modest beginnings in the small Hungarian city of Eger, Agnes Molnar’s career has taken her across the world, from small local law firms to the Magic Circle, from state entities to global banks, and from Budapest to London to Vienna to Montreal. Now, some 10,000 kilometers away from her home country, she is a Partner at Travers Thorpe Alberga in the Cayman Islands. If, as the Chinese proverb has it, a journey of a thousand miles begins with a single step, Molnar is already half-way there.
The COVID-19 crisis continues to plague much of Europe. To get an overview of its effects across CEE – both on investment in the region and on the legal industry itself – we reached out to the members of Pontes the CEE Lawyers legal alliance, a Regional Sponsor at the upcoming Dealer’s Choice International Law Firm Summit.
Shortly after the Hungarian Competition Authority’s (“HCA”) notice related to fines in antitrust cases came into force on January 1, 2021, the HCA issued an amendment, which came into force on April 22, 2021 (the amended notice being the “New Notice”). The New Notice seems to strengthen the wide derogated powers of the HCA in antitrust cases and may lead to higher fines. However, companies may be able to reduce fine amounts by offering compensating remedies.
Over the past few months, the intellectual property specialists at Komor Hennel Attorneys have been busy. “We focus on a lot of corporate-related practice areas, but IP is our main focus and driver,” says Ildiko Komor Hennel, Managing Partner. “We have more than 20 years’ experience in IP, handling different aspects of the practice area, and we have a good grasp of how to keep levels high even during these times.”