Danubia Legal has brought Viktor Luszcz, the former President of the Hungarian Intellectual Property Office, on board as a partner.

The Central Bank of Hungary (MNB) has announced a new program, for the purpose of providing capital requirement benefits to those credit institutions based in Hungary that offer so called green loans for energy efficient housing goals (purchase, building or refurbishment) between 1 January 2020 and 31 December 2023. During this time period, these credit institutions will receive capital requirement benefits (5 to 7% depending on the energy efficiency of the related property) after the provided green loans, and the customers taking out these loans are eligible for lower, discounted rates.

In December 2019 the Hungarian Parliament adopted a law resulting in that all Supreme Court rulings become precedents.

In Hungary the overall tax burden on employment income represents 44% of the total wage cost. Here are the most efficient ways to cut this tax bill.

While dozens of programmers, engineers and hairdressers continue to opt for KATA [the fixed-rate tax for enterprises categorised as “small taxpayers”] in Hungary, the tax is increasingly coming under fire from all sides. Apparently, the Hungarian Tax Authority (NAV) is stepping up its investigations into businesses who employ KATA payers, and at the same time rumours are also flying about a planned KATA tightening.

DLA Piper has advised Optima Investment Co Ltd on the sale of the Reno Udvar real estate project in Hungary to the Chi Fu Group. Dentons advised the buyer on the deal, which is valued at EUR 60 million.

DLA Piper has advised the Hungarian Fund Management Company on the acquisition of Forgacs Intezet, a company focusing on the provision of reproductive health services and obstetric and outpatient care. The unidentified seller was advised by Solo Practitioner Tomcsanyi Tamas, and financial details were not disclosed.

DLA Piper has advised the Hungarian Fund Management Company on its acquisition of 100% of shares in Sterilitas and Varandos. Solo practitioner Istvan Devai advised the unidentified seller on the deal, and the transaction value was not disclosed.

Gyorgy Zalavari, Senior Partner at the Ecovis law firm, has set up a Hungarian network of lawyers who also act as realtors in the country: UgyvedHazak (in English: RealtorLawyers).

Contrary to all expectations, Hungary still does not require the use of building information electronic modelling (BIM) tools in tenders for public works contracts, despite the excitement in the construction industry about the possibility that the tools would be made mandatory as early as 2014.

In The Corner Office we ask Managing Partners across Central and Eastern Europe about their unique roles and responsibilities. The question this time around: What was the most useful or valuable piece of software or new technology your firm has acquired in the past five years?

“We had municipal elections in October, and much to everybody's surprise, the opposition to Prime Minister Viktor Orban did quite well,“ reports Tamas Szabo, Managing Partner at Szabo, Kelemen & Partners in Budapest. “The opposition took the Mayorship of Budapest and around half of the districts in the capital – this is very surprising, especially given that Orban holds a two-thirds majority in the Parliament. This shows that the opposition is still alive, but it remains to be seen if this signifies a new trend.“ He notes that the Prime Minister and his political party remain popular in the countryside.

For two years, new rules apply to proceedings at the ordinary courts, which make litigation a lot more difficult and formalised. As a result, lawyers are increasingly confronted with the question of whether the arbitration court or the ordinary court is more appropriate for ruling on any potential disputes. Of course, the time-worn answer is: it depends… But on what?

A new era began on October 1, 2019 in the history of Hungarian investment promotion: there is no need for new job creation of VIP Cash Grant (regulated by Government Decree No. 210/2014) applicants anymore in case of classical manufacturing investments. The measure is a relief in the tight Hungarian labor market for both newcomers and those considering capacity expansion. In line with the above, the conditions of Development Tax Allowance (regulated by Government Decree No. 165/2014) were amended as of January 1, 2020; therefore, investors commit only to the maintenance of their current level of employees.

Noerr has advised Germany-based ElringKlinger AG on the sale of the Heliport Industrial Park in Kecskemet, Hungary, to Infogroup. Jalsovszky advised the Hungarian real estate development group on its acquisition.

CMS Hungary has advised India-based manufacturing company SRF Limited on an EUR 70 million credit facility. 

Jalsovszky has advised Magyar Posta Takarek Ingatlan Befektetesi Alap on its sale of a retail portfolio, consisting of warehouses in the Hungarian communities of Ajka, Albertirsa, Dunaujvarosm, and Oroshaz. The unidentified buyers were advised by Lovasz.

Jalsovszky has advised both parties on the sale by Magyar Posta Takarek Ingatlan Befektetesi Alap of the Buda Business Center Office Building to an unnamed real estate fund.