KCG Partners has promoted Krisztian Kiralyvolgyi as Partner.

The Government of Hungary expects all investments to comply with the strictest environmental standards. Should companies fail to meet these requirements, fines will be imposed under the "polluter pays" principle. The new penalty regulation distinguishes between private individuals, small and medium-sized enterprises (SMEs) and large corporations.

In June 2025, the Hungarian Parliament adopted a bill proposing that the market value of solar and wind power plants be excluded from the base of real estate transfer tax. If adopted, this would reduce the financial burden for investors purchasing land with renewable energy infrastructure.

On 13 May 2025, the Hungarian Government submitted a bill to the Parliament on the amendment of several laws governing the justice system. The proposal could bring significant changes to civil litigation.

In April 2025, the Hungarian Parliament adopted significant amendments to the Act on Energy Efficiency, bringing about a major revision of the Energy Efficiency Obligation Scheme (EEOS). The new legislative package introduces a range of substantial changes aimed at accelerating the country’s transition toward a more sustainable and energy-efficient building stock while also providing a much-needed stimulus for the domestic construction and renovation sectors.

On 11 June 2025 the Hungarian Parliament adopted the proposal on the protection of local identity, essentially drafted to safeguard the interests of local communities in Hungarian municipalities, which was also published in the Hungarian Gazette on 16 June 2025.

On 17 June 2025, the Hungarian Parliament adopted a bill on the establishment of the central budget for 2026, which would amend several laws, including the Hungarian ESG Act.

The Hungarian Government’s Spring Tax Package adopted on 11 June 2025 introduced significant changes to tax legislation, aligning with international standards and strengthening domestic revenue strategies. The 91-page draft bill proposes multiple structural reforms to Hungary’s tax system. Several provisions previously regulated by Government decrees, such as the retail surtax and insurance tax, will now be incorporated directly into law. Additionally, new regulations are introduced and existing ones revised.

“To comply with the cybersecurity requirements of the NIS2 directive, affected businesses may get an additional six months to prepare,” announced the Supervisory Authority for Regulatory Affairs of Hungary (SZTFH) in a statement on 5 May 2025.

In Hungary, foreign currency-based loan contracts became popular in 2006, as they were available at significantly lower interest rates than their forint-based counterparts. However, during the 2008 financial crisis in Hungary, debtors who had previously signed a foreign currency loan contract (most typical case was the Swiss franc loan), found themselves in an extremely difficult situation, due to exchange rate fluctuations and the crisis. Many families' repayments have tripled, leading to mass foreclosures.

As of 2025, the Hungarian Tax Authority (NAV) has established specialized transfer pricing expert departments, indicating an increased focus and scrutiny on transactions between affiliated companies. The three new departments are located in Budapest and in the eastern and western parts of Hungary (one in each region) and have special competence regarding the complex transaction between affiliated parties within Hungary or cross-border alike.

In March 2025, the Hungarian Parliament enacted legislation expanding the use of facial recognition technologies in minor offence procedures. The law is a part of broader efforts aimed at enhancing child protection measures, but has sparked considerable legal debate due to potential conflicts with European data protection laws, including the General Data Protection Regulation (GDPR) and the forthcoming EU Artificial Intelligence Act.

On 7 April 2025, Mr. János Lázár, Hungary’s Minister of Construction and Transport announced via social media his intention to introduce a major legislative initiative designed to overhaul the oversight of public investments.

In March 2025, the Hungarian Government decided to significantly strengthen Hungarian citizens’ right to use cash. In this context, the Fundamental Law has been amended, so that the possibility to pay in cash will become a fundamental right. According to the explanatory memorandum, this is necessary to avoid the economy becoming completely vulnerable to electronic financial systems.

The Hungarian Ministry of National Economy published a bill to amend the ESG Act on 21 March 2025, simultaneously launching a public debate on the proposal. According to the official justification, the amendment aims to optimise the ESG reporting framework for sustainability aspects of Hungarian enterprises, to further strengthen the competitiveness of enterprises and to reduce the reporting and administrative burden on enterprises.

On 11 March 2025, the Ministry of National Economy and the National Tax and Customs Administration of Hungary published an opinion regarding the taxation of assigning dividend claims into a trust structure.

The Hungarian Government is committed to reducing environmentally harmful activities and protecting the environment. However, fines imposed by environmental authorities for violations related to environmental permits, noise pollution and air quality have remained unchanged for 15–20 years. The Government expects all investments to meet the highest environmental standards, and under the “polluter pays” principle, non-compliant companies will face penalties.

Over the past years, the number of casual and seasonal employees in Hungary has reached nearly 320 thousand, however, according to the Government, many employees are only registered as such because of the tax benefits associated with the forms of simplified employment.