Bird & Bird lawyers Izabela Kowalczuk in Poland and Laszlo Nanyista in Hungary have been promoted to partner as part of the firm's global promotion round.
From 1 January 2020, the reduced tax rate of 5% applicable to the flats to be constructed or existing in a multi-unit residential building with a total net floor space not exceeding 150 square meters and to the single-unit residential building with a total net floor space not exceeding 300 square meters will be terminated and the general VAT rate of 27% will be applicable for the sales of such residential properties.
On March 9, 2018, CEE Legal Matters reported on the expansion of the European act legal alliance with the addition of Hungary’s Ban Karika law firm and Fort Advocaten from the Netherlands. With the alliance now counting 13 offices in Europe – including five in CEE – CEE Legal Matters sat down with Sven Tischendorf of act legal Germany, AC Tischendorf Rechtsanwälte to learn more about the alliance’s plans.
The Hungarian Government recently adopted Act no. LVII of 2018 on the Control of Investments Detrimental to the Interests of Hungarian National Security (the "Act"). Previously we wrote about a similar legislative proposal [see here] (the "Proposal") which aimed at establishing a similar control mechanism. However, the Act has a more sophisticated approach on the control and approval procedure than the earlier proposal had. Pursuant to the Act, investors from outside the EU, Switzerland and EEA countries who wish to invest in Hungary must obtain prior approval from the minister to be designated by a governmental decree ("Minister") which has not yet been adopted.
In recent years, the Hungarian Competition Authority (HCA) has seemingly aimed to foster cooperation between itself and market participants. Recent case law shows that the HCA strives for cooperation even when market participants allegedly commit grave infringements of the competition rules. Market participants are advised to harness this tendency and the HCA's willingness to reach decisions more efficiently. This article examines a number of recent cases and the lessons learned.
According to an amendment to the Hungarian Corporate Income Tax Act approved in July 2018, taxpayers may be eligible for higher tax allowance in connection with an investment project to comply with energy efficiency targets, upon placing the project into operation, in the tax year following the year when the project was placed into operation - or in the same tax year at the taxpayer’s discretion - and in the following five tax years.
As Mr. István Nagy, Minister of Agriculture explained in September 2018, „the undivided joint ownership paralyses the Hungarian economy, and from a competitiveness point of view it is essential to be deleted”. The Hungarian agricultural land and forestry ownership conditions are not optimal, since the average plots are too small and they have many owners. This situation affects 3.5 million citizens and 1 million hectares.
The establishment and renovation of shopping centers will be governed by stricter rules according to a new regulation approved in the summer 2018. The so-called “Plázastop” (in English: Law on stopping malls) was introduced in 2012 for the purpose of preventing the spread of shopping malls. The regulation was originally planned to be in force until the end of 2014, however, it had been amended only in 2015 when the extension and establishment of shopping malls exceeding the floor area of 400 sqm was prohibited.
The Hungarian Minister of Finance announced on 7 August 2018 that the maximum number of third-country nationals who might be employed in Hungary with work permit shall be 55,000. Last year the limitation was 59,000, which means that the maximum number of third-country nationals has been reduced with 4,000. The decision may be surprising, since according to the statistics severe labour shortage is experienced in key sectors and there is a need for the employment of third-country nationals.
The legal practice analyser group of the Curia (i.e. the Hungarian supreme court) published a summarizing opinion on the judicial practice of the possession protection cases initiated before Hungarian notaries. Under the provisions of the Civil Code, the owner shall refrain from any conduct that would unnecessarily disturb others, especially his neighbours, or that would jeopardize the exercise of their rights. The possessor is entitled to request the termination of the disturbance from the notary public within one year.