As of 1 August 2024, the maximum amount of the fine that can be imposed by the Hungarian Competition Authority (“HCA”) will increase from 13% to 15% during the state of war emergency.

In export-import trade transactions across Europe, sellers commonly protect their assets by retaining the title of ownership until the buyer has paid the full purchase price. Retention of title allows sellers to reclaim the assets in case of non-payment or the buyer’s bankruptcy before full payment. However, in Hungary, such an arrangement can present unexpected challenges for sellers.

Wolf Theiss has advised Digi Tavkozlesi es Szolgaltato Kft. on acquiring Direct One from Canal+ Luxembourg S.ar.l. CMS advised the seller.

After heightened political tensions preceding June’s elections, Hungary is now implementing a new electronic land registry requiring attorneys to pass an exam, amid ongoing digitalization efforts, according to Nagy es Trocsanyi Partner Orsolya Kovacs.

Wolf Theiss has advised the 4iG Group and its telecommunications portfolio manager Antenna Hungaria Plc. on their acquisition of a 100% stake in PR-Telecom Tavkozlesi Zrt.

Kapolyi Law Firm has advised Amixa and Foodnet Ltd. shareholders on the former's acquisition of the latter and Amixa's listing of new shares on the Budapest Stock Exchange.

Schoenherr has advised BlackPeak Capital and Catalyst Romania Fund II on a EUR 10 million Series B funding for Leanpay.

Hungarian Lawyer Peter Paroczi has been promoted to the Head of Compliance and Corporate Governance at the Qatar Fertilizer Company.

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.

On August 1, 2024, Filip & Company and CMS announced that Banca Transilvania's purchase of OTP Bank Romania (as reported by CEE Legal Matters on February 21, 2024) has now closed.

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.

The EU’s Al Act (Regulation 2024/1689) enters into force today, August 1, 2024. The groundbreaking Act is designed to ensure that AI systems are safe, transparent, and governed by rules that protect fundamental rights. The Act categorizes AI applications into risk-based tiers, with each tier subject to different levels of regulatory scrutiny and compliance requirements.

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.

Kapolyi has advised VGD Hungary on its sale to WTS Klient.

Taylor Wessing has advised Recorde Asset Management and Forestay Group on the acquisition of a building in Budapest’s Gellert Hill area set to become the Moricz Student Living student residence and office building. Taylor Wessing, working with Kalman & Partners, also advised Recorde and Forstay on the acquisition financing obtained from Hypo Bank Noe.

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.

Taylor Wessing has advised VakifBank International on the implementation of a core banking system.

In its latest decision of May 16, 2024 the European Court of Justice (ECJ) reflected on the Hungarian foreign VAT refund regime. ECJ established once again that non-compliance with formal requirements should not prevent reimbursement of VAT provided that substantive requirements can and have been satisfied.