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Amendments to the Land Registry Act, in force since July 2025, bring long-anticipated relief for owners of ‘zártkert’ (garden or holiday plot) properties.

Product liability regulations hold manufacturers strictly responsible for damages caused by defective products. It allows injured parties to claim compensation directly from the manufacturer, without relying on contractual rules.

On 19 June 2025, new rules were announced, bringing significant changes to the taxation and accounting regulations for trust foundations. The legislator's goal was to unify previously interpreted regulations and create a clear legal and tax environment.

On 31 July 2025, the Government Decree on the Home Start Programme was officially published, setting out the conditions for subsidised housing loans with an interest rate of up to 3%. The loan is intended to help young people buy their first home. It can be taken out for a maximum of HUF 50 million, with a fixed interest rate of 3% and a maximum term of 25 years. The minimum down payment required is 10%.

The European Commission is working on changes to the General Data Protection Regulation (GDPR) to make life easier for small and medium-sized businesses (SMEs), as per its proposal published in May 2025. These proposed changes aim to reduce red tape while still keeping personal data safe.

The National Tax and Customs Administration of Hungary (NAV) launched its summer inspection campaign in June. As part of the nationwide operation, inspectors are conducting checks at popular tourist destinations, beaches, festivals and other outdoor events, among other locations.

As of 20 June 2025, the Hungarian ESG Act was amended once again. By amending the transitional provisions of the ESG Act, the amendment provided further relief to enterprises in terms of their sustainability due diligence obligations for the 2024-2026 financial years, thereby reducing the burden on enterprises subject to the ESG Act.

A new government decree issued by the Ministry of Energy entered into force on 25 July 2025, aiming to make water management regulations more transparent and flexible. One key change is that water authorities may now hold public hearings electronically, for example, via video conferencing or by publishing materials on their official website.

In June of 2025, the Ministry of Construction and Transport published a draft law that would amend the government decree on the procedure for granting permits for changes of the intended purpose of commercial buildings. The original version of the decree has already required a permit for certain types of conversions of commercial buildings over 400 sqm, their separate units or sales areas, as well as for converting buildings over 400 sqm to commercial buildings.

According to Regulation 2025/40 of the European Parliament and the Council on packaging and packaging waste, starting from 1 January 2029, only non-profit organizations will be allowed to operate mandatory deposit return systems (DRS) for beverage packaging. Currently, in Hungary, this system is fully operated by MOHU MOL Hulladékgazdálkodási Zrt. (MOHU).

Following the March 2025 amendment to Hungary’s Fundamental Law, which elevated the use of cash as a constitutionally protected right, significant legislative changes entered into force on 1 July 2025. These amendments aim to bring existing legal provisions in line with the constitutional recognition of the freedom to pay with cash, thereby guaranteeing that consumers can continue to choose their preferred method of payment, including cash, when purchasing goods or using services.

Starting 1 July 2025, Hungary will implement a new procedure aimed at clarifying employment relationships and addressing cases where employers fraudulently evade taxes and social security contributions. The initiative is designed to protect employees while also reducing the administrative burden on employers.

In June 2025, a foreign currency (Swiss franc) loan agreement was annulled by the Pest Central District Court, since the creditor bank had failed to properly inform the debtor (who had been a consumer) about the exchange rate risk arising from the agreement. As a consequence, the whole agreement is invalid retroactively from the date of its conclusion, so that the bank is only entitled to recover the amount it lent to the debtor; beyond that, all repayments, interest and charges must be repaid to the debtor.

An FDI notification obligation arises if a foreign investor - whether from a third country (non-EU) or, in certain cases, from an EU Member State, EEA State, or Switzerland - acquires a shareholding or influence in a Hungarian company operating in a strategic sector, based on the Hungarian Government Decree 561/2022 (XII. 23.) on FDI rules.

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com