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For our new “Checking In” feature, we reach out to partners and heads of practice across CEE to learn how specific practice areas are faring in their jurisdictions. For this inaugural piece, we asked firm Real Estate experts: "What effect do you think the COVID-19 crisis will have on the real estate market in your jurisdiction this year, and what do think will be the longer-term repercussions?"

To this day, the domestic legal system has remained silent on how contracts concluded by email should be treated. However, legislation recently adopted in relation to the COVID-19 pandemic explicitly allows communication via email between a company and its private-individual members. Could this be the first step towards a more comprehensive legal acceptance of emails?

The Act on the termination of the state of emergency declared by Government Decree No. 40/2020 and on the transitional provisions in connection with the termination of the state of emergency were was adopted on 16 June 2020, meaning that the special provisions introduced during the state of emergency will not be applicable or may be of limited application subsequently. Dr. Nóra Óváry-Papp, lead attorney and dr. Helga Lieszkovszky, associate of Baker McKenzie Budapest summarize the expected changes in the legislative environment regarding the termination of the state of emergency. 

It is with great pleasure that we announce the 2019 CEE Deal of the Year Award winners – the most important, complicated, significant, and valuable deals across Central and Eastern Europe.

The Hungarian Parliament is discussing a proposal on the amendment of the Act on Electronic Communications in order to implement the regulations of EU Directive 2018/1972. This latter Directive was adopted by the European Union in December 2018 to set up the European Electronic Communications Code. Member Sates shall implement its regulations until 21 December 2020 after a 2-year long preparation period.

Due to the practical difficulties created by the lockdown measures taken against the coronavirus pandemic, the European Council has agreed that the VAT e-commerce package should apply from July 1, 2021, rather than January 1, 2021.

In order to execute the Hungarian Economy Protection Action Plan, some provisions of the Hungarian Bankruptcy Act and the Company Registry Act must be applied differently based on a government decree adopted in the end of May 2020 (Government Decree). As a result, during the state of emergency, a creditor may submit an application for the opening of a liquidation proceeding only if the deadline determined by the creditor in the payment notification and the subsequent 75 days expired without any result. In addition, the amount of the claim must exceed HUF 400,000.

The Hungarian National Authority for Data Protection and Freedom of Information (the "Authority" or "NAIH") recently imposed a fine of HUF 100m (approx. EUR 285,000) on one of the biggest electronic communication service providers Digi Távközlési Szolgáltató Kft. ("Digi"). This is the highest data protection fine imposed in Hungary since the entry into force of the GDPR and the highest ever fine levied in Hungary for a violation of data protection regulations.

The Hungarian Parliament accepted a bill on 16 June 2020, which would enable the creation of special industrial zones. “The designated special industrial zones will be contributing to the restarting of the economy, creation of new jobs, and also the preservation of the existing jobs” stands in the press release. According to the legislation, the main goal of the regulation is to facilitate a fairer distribution of tax income realized from greater investments as these zones would be no longer under the control of the local council.

The Hungarian government introduced a state of emergency in March and took several extraordinary measures to mitigate the economic consequences of the coronavirus crisis. These measures heavily affected the Hungarian economy and legal system. Since the Hungarian government revoked the state of emergency, it is time to summarize the relevant legal background.

The Hungarian Government promulgated a decree (229/2020) entered into force on 1 June 2020, amending the decrees on certain procedural measures in force during an emergency (74/2020.) and on certain penitentiary rules in connection with the declaration of a state of emergency (90/2020.). The amendment regulates civil court proceedings for a transitional period, since on 26 May 2020 two bills related to the termination of the state of emergency were submitted to the Parliament, which define rules of court proceedings for a longer period in the future. As a result, the rules of this decree will only be used until the two bills mentioned above are accepted by the Parliament.

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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