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Stricter Environmental Penalties as of May 2025: New Rules for Corporations and SMEs

Hungary
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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.

As of 1 May 2025, under the amended rules of Government Decree No. 314/2005 (XII.25.) on Environmental Impact Assessments and the Unified Environmental Use Permit Procedure, the amounts of environmental fines have significantly increased – at minimum doubling, but depending on the severity of the violation, potentially increasing up to fortyfold.

If an investor commences or continues an activity subject to an environmental or unified environmental use permit without having obtained such permit, the daily fine will range from HUF 100,000 to HUF 1 million. If the investor has obtained the necessary environmental or unified permit but carries out the activity in a manner that deviates from the prescribed conditions, the fine imposed on SMEs may increase to between HUF 500,000 and HUF 20 million. For large corporations, the maximum fine is 5% of the previous year’s net turnover, up to a maximum of HUF 2 billion.

Another significant change is that companies committing major environmental violations will be made public. In such cases, the environmental authority will record the violation in the Administrative Sanctions Register and notify the minister responsible for environmental protection. Specified data of companies committing serious environmental infringements will be published on the ministry’s website, and the environmental authority will prohibit the company from continuing the activity until the violation is resolved.

By Lilla Majoros, Attorney at Law, KCG Partners Law Firm

Hungary Knowledge Partner

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.

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