CEE Legal Matters
In-depth coverage of the news and newsmakers that shape Europe's emerging markets
Last summer, the deposit return system (DRS) was introduced, under which 0.1-3 litres of drink products with a mandatory redemption fee can be bought in shops at a price increased by the redemption fee.
In 2024, EU data protection authorities imposed a total of EUR 1.2 billion in fines. This brings the total value of fines to EUR 5.88 billion since the GDPR became applicable, DLA Piper's latest report reveals.* The technology sector has been hit the hardest, with data protection focusing on managerial responsibility and privacy issues in AI tools.
Schoenherr, working with Argo, has advised Group Vandamme on the sale of its Hungarian activities to ADM. Baker McKenzie advised the buyer.
The Hungarian Government has made a significant amendment just weeks into 2025 by increasing the VAT exemption threshold for small and medium-sized enterprises (SMEs). Despite the autumn tax package for 2025 remaining silent on this matter, the new limit has been set at HUF 18 million, up from the longstanding HUF 12 million. This increase applies retroactively from 1 January 2025. Taxpayers have until the end of February to opt in for the exemption.
Captive insurance has experienced significant growth globally in recent years, driven by hard market conditions, emerging risks and increased volatility. Statistics reveal a steady increase in the number of captives over the past four years, rising from 5,879 in 2020 to 6,181 by the end of 2023, according to the Captive Managers and Domiciles Rankings + Directory 2024 published by Business Insurance.[1] Captive insurance companies are also increasingly used by Forbes 1000 and Fortune 500 companies to manage complex and emerging risks.
Hungary introduced new regulations for employing guest workers from third countries. These updates specify eligible countries and permit requirements to align with Hungary’s labour market needs and compliance standards.
Eva Kovacs has joined Jalsovszky as a Managing Associate and the firm’s new Head of Real Estate Practice.
Jipyong Partner Ji Hye Lee has joined Oppenheim’s Korea desk in Budapest.
DLA Piper has advised the Government Debt Management Agency (AKK), acting on behalf of the Republic of Hungary, on an international syndicated revolving credit facility agreement for a total amount of EUR 1.5 billion with 13 undisclosed Hungarian and international banks. CMS advised the coordinating banks.
The Hungarian Act on Fees and Duties will be changed significantly as of 28 January 2025, which will also affect the fees for court proceedings.
Highlights in Hungary are delayed real estate digitization, stricter ESG compliance, and regulatory deal flow complexities, according to Szecskay Senior Partner Judit Budai, with her projecting that sectors like IT, defense, infrastructure, and ESG compliance will dominate the agenda in the near future.
The legislator recently introduced a number of implementing regulations for the Architecture Act and more are expected in the near future. In this article, DLA Piper Hungary's lawyers outline the key details of the new, generally mandatory contractor's professional liability insurance, taking into account that contractors must have such insurance from 15 January 2025.
Oppenheim and Invicta have advised JRD Energo Group and its co-investors on the sale of JRD’s Hungarian photovoltaic power plant portfolio with a 29.440 kilowatt built-in capacity to the Hungarian subsidiary of Obton. Forgo, Damjanovic & Partners and Havel & Partners advised Obton.
Based on the contents of the government decree on construction works in effect since 1 October 2024, all domestic construction or design firms and self-employed persons must have compulsory contractors' liability insurance starting from 15 January 2025.
On 1 January 2025, inter alia, an amendment to the Personal Income Tax Act relating to intellectual property (IP) contribution entered into force.
The AI Act introduces a comprehensive legal framework for companies dealing with AI systems in the EU. From 2 February 2025, companies subject to the regulation must take steps to ensure AI literacy and ensure that no prohibited AI practices are used. Non-compliance could lead to substantial fines.
Cytowski & Partners has advised Hungary-based Axoflow on its USD 7 million seed series with the participation of the EBRD, Credo Ventures, and E2.VC. Dentons reportedly advised the EBRD.
Former Indotek Group Senior M&A Legal Counsel Laszlo Palocz has returned to Kinstellar, joining the firm’s Budapest office as Counsel.
DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.
With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.
We are a true full-service firm, providing our private and public sector clients with advice on all aspects of their business. This includes transaction-related advice, people and employment, commercial dealings, litigation, information technology, media and communications, intellectual property, insurance, tax, real estate, and restructuring plans.
DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.
