Factoring has emerged as an essential financial solution for businesses in Hungary, offering a fast and flexible way to maintain cash flow and bridge liquidity gaps, especially for those with extended payment terms in sectors like agriculture, manufacturing and logistics. However, navigating Hungary’s complex regulatory landscape can pose challenges for companies seeking to use factoring to its fullest potential. With options like silent factoring available to help preserve client relationships and a need for thorough understanding of local laws, businesses can benefit significantly from a strategic approach. This article explores the advantages of factoring in Hungary, along with key regulatory considerations to ensure compliance and stability in companies’ financial operations.

On 29 October 2024, the Hungarian Ministry of National Economy announced that new laws are submitted to the Parliament to increase the period available for requesting paternity leave.

Hungary’s economy and legal market have faced a tough year, shaped by political tensions, economic challenges, and global uncertainty, according to Pontes Budapest Partner Csaba Polgar, and from delayed investments to unpredictable regulations, the market has been navigating a challenging and uncertain landscape.

Dentons has advised Globe Trade Centre on the acquisition of a real estate portfolio from the real estate investor Peach Property Group. GTC acquired the portfolio in a consortium along with Luxembourg Finance House. Greenberg Traurig's Germany office reportedly advised Peach Property Group.

Deloitte Legal has advised PortfoLion Capital Partners on their investment in 4FIZJO. Schoenherr advised 4FIZJO.

A recent ruling by Hungary's Curia could signal a wave of lawsuits and substantial overtime compensation claims, potentially impacting millions of workers. According to a March 2023 ruling from the European Court of Justice (ECJ), the daily rest period - a minimum break between shifts - is distinct from the weekly rest period and must be provided beforehand.

The longstanding partnership between Hungary and Serbia has taken another step forward with the recent amendment to the double taxation convention. These agreements are crucial for eliminating double taxation on income and assets for both individuals and companies, fostering a more favorable business climate.

On November 7, 2024, M&A experts from Austria, Bosnia & Herzegovina, Croatia, Greece, Hungary, Moldova, Romania, and Ukraine participated in a virtual round table moderated by CEE Legal Matters Managing Editor Radu Cotarcea to discuss the FDI screening regimes in their country and key developments in the area on the horizon.

On 10 October 2024, the Ministry of National Economy published a draft Government Decree on the National Trade and Consumer Protection Authority and another one on the amendments to the Government Decrees related to the establishment of the National Trade and Consumer Protection Authority.

The Hungarian Parliament voted to extend the state of emergency with an additional 180 days. The Hungarian Government declared a state of emergency by a government decree that entered into force on 25 May 2022.

The Ministry of Energy, taking into account regulatory experience as well as public feedback, has adjusted the emission limits for several particularly toxic air pollutants in factories, raising them to stricter levels in line with German standards, which are more stringent than the EU regulations.

Lakatos, Koves and Partners has advised Green Power Investment on the sale of two Hungarian photovoltaic projects with a combined capacity of 7.7 megawatts to an unidentified Austrian investor.

Baker McKenzie and its Turkish affiliate Esin Attorney Partnership advised DFDS on its acquisition of Ekol Transport and the international transport network connecting Turkiye and Europe from Ekol Logistics and individual sellers led by founder Ahmet Musul. Caliskan Okkan Toker reportedly advised the sellers.

Schoenherr has advised Bank Gospodarstwa Krajowego on a EUR 40 million financing agreement for the development and long-term investment of a Puro Hotel in Budapest. Szabo, Kelemen & Partners Andersen advised Puro.

Despite 2024 being a relatively slow year in terms of real estate transactions, Act Legal Partners Adam Kaplonyi and Gergely Ban see ample signs to be optimistic about the sector's outlook in Hungary.

Bird & Bird has advised Iron Mountain on its acquisition of Wisetek.

In a bid to enhance legal competitiveness, a new legislative proposal aims to streamline regulations in environmental protection, waste management, consumer rights and workplace safety, boosting the competitiveness of domestic businesses. The proposal is currently under public consultation, but it already highlights several key changes that may be of interest to various sectors.

Schoenherr has advised Seidel Hungaria Ingatlankezelo on its sale of an industrial asset located in Ajka, Hungary to Muszertechnika Holding. Molnar and Bereczky advised Muszertechnika Holding.